The level of applications over the first two months of 2024 were “significantly ahead of expectations” and five per cent higher than its “strong performance in 2022”, the trading update from LSL said.
The group said the benefit of the rise in applications would be seen in the level of completions during the first half of this year.
Its completions were in line with its expectations, LSL said, which reflected its opening pipeline at the start of the year.
Since mid-January, LSL said there had been a “material and sustained increase” in valuation instructions, which reflected its contract wins and the rise in market activity. It also attributed this to a reduced share of product transfer business.
In the first two months of 2024, the income generated by the surveying and valuation business each day was 50 per cent up on the equivalent period in 2023. In February, the division’s income rose to its highest level in February since the aftermath of the mini Budget.
Across its estate agency franchising division, the profit generated in the first two months amounted to nearly £1m, compared to losses of £1.5m and £2m during the respective periods in 2023 and 2022.
Positive activity for LSL
LSL said momentum had increased across the business following a positive Q4 last year.
At the end of February, its underlying operating profit was ahead of the board’s previous expectations and around £7.5m higher than the same period last year. It was also around £2.5m up on 2022.
LSL attributed this to strong activity within the surveying and valuation division.
Its net cash fell from £34.9m in December to £28m in February due to the acquisition of the TenetLime mortgage network, which completed last month.
Looking ahead, LSL said conditions had improved in the mortgage and housing markets, but added that it was “difficult to predict the future path of these with confidence”.
Despite this, based on early trading, it expects 2024’s profits to be “materially ahead” of 2023.
