FURNITURE retailers MFI and Homestyle have shown how much they are benefiting from the housing boom, by reporting a strong start to the year.

MFI chairman Ian Peacock said sales at the DIY company were up 12 per cent in the first 20 weeks of this year on a like-for-like basis.

And Rotherham-based Homestyle shrugged aside fears of a slowdown by saying that its sales momentum had gathered pace in recent weeks.

The group, which owns the Harveys and Rosebys chains, said like-for-like sales across the business were up 11 per cent in the 11 weeks up to May 19.

Pre-tax profits at Homestyle rose to £17.5m from £14.1m on total sales of £601.4m, an increase of 30 per cent.

MFI is expected to report profits of about £78m for the current year, up from the £64.7m achieved last year.

The group hit the £1bn sales mark last year and Mr Peacock said the sales performance so far was "in line with our expectations".