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These are subdued times for the property market. Homebuyers have been discouraged in the face of high interest rates, cost of living pressures, and out-of-reach house prices, mixed with concerns about the economy and potential tax changes that could silt up the housing market.
Fewer property deals can drag down mortgage approval rates, which leaves lenders and mortgage brokers with the challenge of delivering growth even as broader market trends work against them.
Ambitious operators can do this by increasing their market share organically or through acquisitions, even if the market itself isn’t expanding. Two companies operating in the property sector have demonstrated this.
Property Franchise Group, a lettings and sales agentwith alarge portfolio of affiliated brands and agencies that it owns outright, has delivered growth through several acquisitions — among them, its rival Belvoir. Loans broker Mortgage Advice Bureau has expanded the number of advisers working under its banner, allowing it to seize a greater market share. Both have invested heavily in technology to accelerate productivity as part of their growth strategy.
Mortgage Advice Bureau has been using proprietary technology to make significant cuts to adviser workloads. Its bespoke technology is designed to minimise time spenton fact finding and to allow advisers to screen out weakleads, spending more time on higher quality ones which the company says has resulted in productivity gains.
Property Franchise is also focused on productivity and has ploughed more into AI-driven solutions designed to enhance call handling, property management triage and the progression of leads.
BUY: Mortgage Advice Bureau (MAB1)
Mortgage broker Mortgage Advice Bureau pointed to potential benefits ahead from “greater lender stress-test flexibility, improved affordability and sharp increases in product maturities”, after it outperformed the wider domestic lending market in its first half and confirmed its plan to list on London’s main market in 2026, writes Christopher Akers.
The company’s total mortgage completions were up 17 per cent to £14.2bn, compared with a 6 per cent uplift for the market. The purchase segment was boosted by 35 per cent after stamp duty relief changes brought transactions forward to the first quarter.
Revenue and adjusted pre-tax profit, up by a fifth to £148mn and 18 per cent to £14.5mn, respectively, were both slightly ahead of guidance in the company’s July trading update. Adviser numbers rose 5 per cent to 2,041, while average revenue per adviser improved by 14 per cent to £74,600.
The shares trade on 15 times forward consensus earnings for 2026. That is undemanding given progress towards medium-term targets to double revenue and market share.
BUY: James Halstead (JHD)
Floor coverings manufacturer and distributor James Halstead reported lower revenue for the second year in succession, writes Michael Fahy.
Stronger sales in North America were more than offset by declines in Europe and Asia Pacific.
Sales fell by 5 per cent but the decline in pre-tax profit was smaller at 2 per cent, as costs were reined in and it sold more higher-margin product.
“Against the climate in our major markets, we don’t think that’s bad,” argued chief executive Gordon Oliver.
He complained of cuts to both UK and Europe government budgets. Weak consumer confidence also means fewer people are making home improvements.
Expectations for the current year remain subdued, though. Broker Zeus Capital cut its earnings per share forecast by 1.7 per cent but it still expects a 6 per cent improvement on this year. And given a 16 per cent year-to-date decline James Halstead’s shares remain in bargain territory. They are priced at 14 times forward earnings (against a five-year average of 24 times) with an expected dividend yield exceeding 6 per cent.
HOLD: Card Factory (CARD)
Card Factory’s interim results gave cause for only mild celebration, with a boost to the dividend and reporting in line with modest expectations, writes Erin Withey.
Lower profits came as no surprise given the impact of non-underlying costs related to acquisitions and derivatives. Net debt also nudged up as a result of final dividend payments.
The greeting cards and gift seller reported like-for-like store revenue growth of 1.5 per cent for the half, though like-for-like online sales were down 11.3 per cent, which management maintains was brought about by a focus on higher-margin sales.
Elsewhere, the company’s Simplify and Scale cost efficiency programme is progressing well. The group is seeking to mitigate up to £20mn in additional inflation and wage rises in 2026.
Full-year guidance remains unchanged, but after an investment-heavy first two quarters, pressure is mounting on second-half numbers to deliver. Despite trading on forward earnings of just 6.8 times, according to FactSet, we remain on the sidelines for now.
Full-year guidance remains unchanged, but after an investment heavy first two quarters, pressure is mounting on second-half numbers to deliver. Despite trading on forward earnings of just 6.8 times, according to FactSet, we remain on the sidelines for now.