Belvoir Group PLC (AIM:BLV) raised its forecasts for 2021, saying demand for lettings is running at red-hot levels.
Income from lettings is 21% up on 2020 with demand for rental properties at ‘unprecedented levels’, the property specialist added.
Rents increased in all areas of the UK with income also boosted by the acquisition of Nicholas Humphreys, a predominantly student lettings network.
Sales income is up 65% compared to twelve months ago, mainly a result of “the strongest market for property transactions seen since 2007”.
The financial services division saw gross profit rise 39%.
As a result of the strong trading, Belvoir said profit before tax will be “ahead of management’s expectations for 2021 and substantially ahead of 2020”.
Net debt meanwhile dropped by £1mln to £2.7mln even after spending £4mln cash to acquire Nicholas Humphreys and £0.6mln on Nottingham Mortgage Services.
Dorian Gonsalves, chief executive, added: “In 2021 we have seen our franchisees and mortgage advisers take advantage of an exceptionally strong sales market.
“The sector undoubtedly benefitted hugely from the Government’s decision to extend the stamp duty holiday until September 2021, following which we have seen a predictable slowing in the number of new instructions as the market normalises.
“We anticipate that given the ongoing pent-up demand from buyers, the market will return to more usual transaction levels in 2022.
“In the meantime, our current pipelines remain strong and support outperforming our end of year forecasts.”
In May, Belvoir raised its full-year guidance due to pent-up demand.
Read More: Belvoir Group PLC ups forecasts again as lettings demand hits