LSL Property Services has reported an 8% increase in mortgage revenue during the first half of 2026 as the wave of borrowers reaching the end of fixed-rate deals continued to drive remortgage activity.

The group maintained an 8.9% share of total mortgage lending through its adviser network and reported a 12% increase in revenue per adviser.

LSL said around 1.8 million fixed-rate mortgage products are expected to mature during 2026, creating a “significant and sustained opportunity” across its financial services and surveying businesses.

The group also made a regional acquisition after the end of the period which it expects will add around 50 advisers to the PRIMIS network.

REMORTGAGING DRIVES GROWTH

LSL said the overall mortgage market recovered during the first half, with gross new lending increasing 8% to £145bn and mortgage approvals rising approximately 5% year-on-year to 701,000.

Remortgaging was the principal driver, with the volume of remortgage and other approvals increasing 17% as significant numbers of two and five-year fixed-rate deals matured. Associated lending was 29% higher than during the first half of 2025.

Purchase activity remained around 2% below its long-term average, while purchase lending accounted for approximately 60% of new lending.

LSL said the intermediary channel remained structurally important, accounting for 85% of UK mortgage lending.

MARKET SHARE EDGES HIGHER

Within its Financial Services division, LSL increased its share of the purchase mortgage market to 12.7% from 12.6% and its remortgage share to 8.9% from 8.7%.

Its share of the product transfer market increased more sharply, from 5.8% to 6.7%.

Total Financial Services revenue nevertheless fell 3% to £22.8m, while underlying operating profit declined to £3.4m from £4.3m. LSL attributed this principally to investment in its new CRM and lower adviser numbers following the departure of protection-only firms.

The business is now focused on improving adviser productivity, product penetration and recruitment.

LSL said: “With around 8.9% of all UK mortgages flowing through our adviser network, we have genuine scale and reach and our priority is to translate that position into stronger growth and returns.”

GROUP PROFIT UP 11%

Across LSL, revenue increased 3% to £92.3m while underlying operating profit rose 11% to £15.9m. Underlying operating margin increased to 17%.

Group chief executive Adam Castleton (main picture, inset) said: “LSL performed well in the first half, delivering further profit and margin growth and strong cash generation. Our markets developed broadly as expected despite prevailing negative sentiment.

“We launched a Group-wide transformation programme expected to improve our structural cost-effectiveness and leverage our scale. The programme will simplify how we operate, strengthen our capabilities and support further structural improvement in margins.”