Hunters has reported a strong performance in its latest trading update – bucking a trend where both Foxtons and Countrywide have issued warnings.

The group has had clear success in recruiting established agents who have re-branded. It is a strategy that looks set to continue.

The almost entirely franchised company said that it expects trading for the full year to be “significantly ahead of last year and slightly ahead of the board’s expectations”.

The firm reported total income across its network of almost £29m and an 18% uplift in lettings income for the ten months to October.

The recruitment of franchisees and roll-out of new branches is on-track to reach 30 or more new branches for the third consecutive year.

The company said it will continue to help independent businesses join the Hunters network and take advantage of the Hunters systems, with the intention of developing their (and the group’s) income streams.

In 2015, agents who converted to Hunters, and for whom 2015 was their first full calendar year, grew their turnover on average by 29%.

As at the end of October, there were 180 branches in the network, and Hunters says the fourth quarter started with a strong pipeline of sales, lettings and scheduled branch openings.

Glynis Frew, chief executive of Hunters Property, said: “The board continues to monitor and review the Government’s proposal to ban tenant fees.

“The company has a strong sales bias, representing 72% of group revenues, and is therefore confident it can manage and adapt accordingly.

“The board is aware that the industry experienced a similar situation in Scotland in 2012 where the industry adapted without long-term damage to profitability.”

Kevin Hollinrake, chairman and founder of Hunters and who is now a Tory MP, said: “To the end of 2016 and looking to 2017 the board believes that the skills and reputation of the group’s experienced management team and its track record of success will continue to attract high-quality individuals and businesses to the Group.

“The group has a number of branch openings scheduled for the remainder of 2016 and into Q1 2017.

“The board confidently expects significant further network expansion during 2017 through attracting high-quality franchisees, and continues to review strategic acquisitions.

“It is the board’s intention on the back of the full-year results to look to increase its final dividend as part of its progressive dividend strategy.”