- Wednesday, October 16, 2024
U.K provider of residential-property services, LSL Property Services, announced that their profits for the second half and full year are expected to fall short of expectations due to recent changes in the mortgage market.
LSL Property Services stated on Monday that the significant increase in the Bank of England's base rate in June had a substantial impact on the market, resulting in a decrease in both purchase and remortgage activity. This change has led to an increase in the number of customers opting for product transfers, whereby they stay with their current lender after their mortgage scheme is completed.
The company anticipates significant uncertainty in the mortgage lending market for the second half. They project a lower level of purchase and remortgaging activity compared to their previous forecasts. However, this decline will be partially offset by an increase in lower margin product transfers.
LSL Property Services reported first-half total revenue of approximately £104 million ($132.6 million) in comparison to £160.9 million generated in the same period last year.
Underlying operating profit, which excludes exceptional and one-off items, reached £3.5 million – in line with the board's expectations and down from £14.2 million the previous year.
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