Belvoir Group’s latest trading update ahead of its AGM reveals strong growth in its letting business so far this year, while its estate agency division is on track to hit forecasts despite a downturn in the sales market.

Management services fees (MSF) from its franchised operations increased 5% in the period to April compared with last year, while letting MSF are 7% ahead, Belvoir Group said.

Rents on new tenancies have increased by an average of 9.9%, while eight of its franchisees have acquired a local competitor with its assistance.

Fees from sales are down 4%, but Belvoir pointed out that UK housing transactions overall have fallen by 15% in the first quarter of 2023.

Gross profit from the financial services division in the first four months increased by 8% helped by The TIME Group acquisition a year ago, which offset a 12% drop in the underlying financial services business following the disastrous mini-Budget.

Belvoir said that mortgage approvals and property prices are starting to rise again, but the impact on market sentiment is still being felt.

Dorian Gonsalves, chief executive, described Belvoir Group’s performance so far in 2023 as “resilient”, and now that it is in a net cash position the company is looking look for new acquisitions.