LSL Property Services has said it expects to deliver further profit growth in 2026, citing a stable housing market and continued operational momentum.

The group issued a trading update ahead of its annual general meeting in London, pointing to a strong start to the year despite ongoing uncertainty in financial markets.

While refinancing activity saw a short-term uplift in March and April following mortgage product repricing, LSL said this had now moderated, with underlying housing transactions remaining stable.

The business reported continued solid trading across its core divisions, supported by healthy pipelines and established market positions. It noted that the London market has shown signs of softness, although this has limited impact on the group given its relatively low exposure to the capital.

REGULATION AND MARKET STRUCTURE

LSL said the evolving regulatory environment is likely to support its business model, highlighting developments such as the Renters’ Rights Act and ongoing consultation around home buying and selling reform.

The group believes these changes will raise standards across the sector and increase the focus on professionalism and transaction efficiency, areas where it sees competitive advantage through its scale and integrated capabilities.

TECHNOLOGY AND PLATFORM INVESTMENT

Investment in data and technology remains a central focus, with LSL continuing to develop its platforms to improve productivity and support growth.

The rollout of its broker operating platform is progressing in line with expectations, with the group anticipating gains in broker productivity and protection penetration. Within its surveying division, LSL confirmed it is progressing further opportunities following the signing of its first automated valuation model contract in the final quarter of last year.

EXPANSION AND STRATEGIC INVESTMENT

The group also reported continued expansion within its estate agency franchising business, having supported the acquisition of six lettings books and opened 14 new branches so far this year.

In addition, LSL has made a strategic investment in a digital conveyancing business, aimed at strengthening its proposition to franchisees and supporting cross-selling opportunities across the group.

Pivotal Growth, its investment arm, has continued to build momentum through further acquisitions, with LSL highlighting its ability to scale profitably.

CAPITAL ALLOCATION AND OUTLOOK

The group confirmed it is progressing its enlarged share buy-back programme, launched in January, as part of its capital allocation strategy.

Looking ahead, LSL said it remains focused on driving growth and returns by leveraging its combined capabilities more effectively, with increasing emphasis on operating as a unified business.

The company added that it is actively progressing plans to deliver cost efficiencies and productivity improvements across the group.