LSL reports weaker housing market

ESTATE agency group LSL Property Services said the housing market has weakened since the beginning of July, with House Purchase Mortgage Approvals down 12 per cent in the third quarter.

By The Newsroom

Published 4th Nov 2010, 08:40 BST

The York-based group said Total Mortgage Approvals fell by ten per cent and the annualised run rate of House Purchase Mortgage Approvals suggests that full year approvals will be around 575,000 compared to 593,000 for 2009.

The group said that despite this backdrop, it has performed well and made good progress and expects to meet expectations for 2010.

Looking forward, the group said it has a cautious view of 2011 and it expects no improvement on current market run rates given the continuing market uncertainty.

It said it remains profitable and "extremely cash generative" at market levels which have been at, or around, half historic levels for some time.

It added that it has a strong balance sheet and is on track to have minimal net debt at the year end.

Last month LSL announced plans to buy a loss-making mortgage distribution company from Skipton Building Society for 1.59m.

York