In January and February of this year, group underlying operating profit has so far managed to jump ahead of the board’s previous expectations and is nearly £7.5 million ahead of the same period in 2023 and nearly £2.5 million above 2022
LSL Property Services, one of the biggest providers of mortgage and valuation services, raises expectations following an improvement in the UK’s housing and mortgage market.
In January and February of this year, group underlying operating profit has so far managed to jump ahead of the board’s previous expectations and is nearly £7.5 million ahead of the same period in 2023 and nearly £2.5 million above 2022.
The firm, which owns Your Move and Reeds Rains estate agencies, was compelled to warn on its profits last year after “significant changes in the mortgage market” such as high-interest rates and a squeeze on buyer affordability impacted its bottom line.
Today, the company said mortgage applications over the first two months of the year are “significantly ahead” of expectations with daily applications in February 23% higher than last year and 5% above 2022.
Towards the end of last year, home loan prices dropped as UK lenders offers got competitive in a market hit by economic turmoil.
Lenders have since raised their prices marginally as an imminent rate cut from the BoE has waned, however, this has not seemed to deter a positive sentiment in the market.
A report by property portal Zoopla last month showed a 21% rise in the number of homes for sale compared to a year ago.
The board of LSL said: Whilst commentators have pointed to improving conditions in the mortgage and housing markets, it remains difficult to forecast the future path of these with confidence. Nonetheless, early trading reaffirms the Board’s confidence that profits in 2024 will be materially ahead of 2023.
It said: The earlier than expected recovery means that even at this stage of the year, the board’s expectations for the full year have increased.
