Estate agent Belvoir says Brexit vote and stamp duty "unsettled" the property market

Helen Cahill
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The company said it was on track to meet targets (Source: Belvoir)

UK property franchise Belvoir Lettings said this morning the property market had been "unsettled" in the lead up to the Brexit vote.

Chairman and chief executive Mike Goddard said demand for property remains strong, but added that tax changes for buy to let landlords, combined with the EU referendum, meant the market's growth in the first half of the year had been "tempered".

After the statement, Belvoir's share price fell by 2.94 per cent in morning trading.

The figures

Belvoir's revenues jumped 60 per cent in the six months ending 30 June, up to £4.3m from £2.7m during the same period last year.

The hike comes after the company acquired Northwood estate agents, adding 86 offices to the group; like-for-like revenues were up 10 per cent. Belvoir now has 306 outlets across the country.

Profit before tax, adjusted for the costs of taking on Northwood, increased by 69 per cent, reaching £1.3m.

Read more: House prices went up in August - but experts say the outlook is "cloudy"

Why it's interesting

When Belvoir listed on Aim in 2012, it worked solely in the lettings business, but is now moving into sales and has broadened the services it provides.

With transaction volumes tumbling after the government introduced a higher rate of stamp duty on second homes, estate agents have suffered. The Brexit vote has stoked nervousness in the property market, as many homeowners refuse to sell in such uncertain conditions, especially in London.

Despite Goddard's admissions on the impact of the Brexit vote, he was confident about the company's fortunes going forward, reassuring investors Belvoir will meet its targets for the year.

What Belvoir said

Goddard said the company would meet its annual objectives, adding:

Belvoir has had a very successful six month period during which much positive progress was achieved.

Most notable of this was our acquisition of Northwood in June, which was the largest remaining property franchise network with 86 outlets, supported by a successful fund raise.