The Property Franchise Group (TPFG) reported record first-half revenue of £43.3m as growth in lettings, financial services and new income streams helped offset a subdued property sales market.
Announcing interim results to the City this morning TPFG said revenue increased 7% from £40.3m in the first half of 2025, with like-for-like growth of 4%. Adjusted pre-tax profit rose 7% to £15.5m, although statutory pre-tax profit fell from £12.2m to £11.3m.
Franchising, which accounted for 55% of group revenue, grew 8% to £24m, while financial services revenue increased 10% to £13m. Licensing revenue remained flat at £6.3m.
TPFG, whose brands include Belvoir, Hunters, Martin & Co, EweMove, Fine & Country and The Guild of Property Professionals, also increased its interim dividend by 10% to 7.7p.
LETTINGS RESILIENCE
The group’s managed lettings portfolio remained broadly stable at around 149,000 properties compared with 150,000 a year earlier, despite the implementation of the Renters’ Rights Act.
Lettings management service fee income increased 2% to £10.6m, principally due to rental price growth.
TPFG said the regulatory changes increasingly favour professional, well-supported agents and that it had provided franchisees with training, guidance and compliance support during implementation of the Act.
Its Privilege programme generated £1.2m in its first full half-year, compared with £100,000 a year earlier, while its rent guarantee element now protects more than 72,000 managed properties.
Gareth Samples (main picture, inset), Chief Executive Officer of The Property Franchise Group, said: “This has been another record first half for the Group, delivered in a subdued sales market, demonstrating the resilience of our diversified franchise model.
“We maintained our managed portfolio at 149,000 properties whilst supporting our network through the implementation of the Renters’ Rights Act, and pleasingly, Privilege delivered £1.2m of revenue in its first full half year.”
SALES MARKET
TPFG’s franchisees completed more than 15,500 property sales during the period, down 4% from 16,200 a year earlier and broadly matching the decline in wider UK housing transactions.
Sales management service fee income nevertheless edged up 1% to £5m as higher average transaction fees compensated for lower volumes.
The group entered the second half with a sales-agreed pipeline worth £44.6m, up from £43.5m in June 2025, which it said should support completions during the remainder of the year.
Other franchising income jumped 44% to £4m, driven by initiatives including Privilege and TPFG’s in-house marketing operation MarketMore.
MORTGAGES AND EXPANSION
Financial services also provided a significant source of growth, with TPFG arranging 13,400 mortgages during the half compared with 12,800 a year earlier.
The value of lending arranged increased from £2.3bn to £2.7bn.
TPFG completed its acquisition of Smart Advice Financial Solutions (SAFS) in January, which it said had been successfully integrated and was performing in line with expectations.
The group also invested in Meridian, the parent company of Legal & General Surveying Services, extending its reach into residential surveying.
Samples said: “We have continued to broaden the platform, acquiring SAFS, investing in Meridian and launching our first AI-enabled products. Each extends our reach across the property transaction lifecycle.”
AI ROLLOUT
Fourteen franchisees were using TPFG’s first commercially launched AI-enabled products at the end of the period. The technology is designed to improve agent productivity, inbound lead handling and financial services lead progression.
Increasing adoption across the network will be one of the group’s priorities during the second half.
TPFG’s licensing division had 1,039 licensees. Fine & Country grew from 304 to 328 licensees, while Guild membership fell from 731 to 711.
The group said it expected the sales market to remain subdued, with economic and political uncertainty continuing to weigh on consumer confidence, but believed structural demand in lettings remained strong.
Samples added: “Looking ahead, whilst the external environment remains uncertain, our diversified income streams and growing recurring revenue base give us confidence in delivering full year trading in line with market expectations.”
