LSL's results will beat expectations

It also confirmed that it was looking for more acquisitions.

In a trading update, it said group turnover for the second half of the year was up by 21 per cent, while estate agency turnover over the same period rose by 42 per cent.

In a statement, the company said: "The estate agency turnover reflects stronger than expected activity in the housing market, with mortgage approvals for house purchase estimated to be 360,000 for the second half of 2009.

"Exchanges remained strong in December to beat the stamp duty deadline. In addition, the increase in turnover has been supported by the continued growth in lettings income and the significant growth in repossession asset management income."

LSL said the surveying division had made good progress in 2009 although activity had been affected by a contraction in the re-mortgage market and in its Barnwoods operation.

Various contracts have been extended including the recently announced five year contract extension with Santander, which will enhance earnings in 2010.

Cash generation in 2009 had been strong and ahead of expectations, with net debt reduced significantly, LSL said.

Commenting on outlook, LSL added: "Activity levels have improved from the unprecedented conditions of 2008, but still remain challenging against historic norms. Given the macro outlook, the continued shortage of available mortgage finance, and the impact of fiscal tightening on consumer spending, market conditions will remain extremely unpredictable.

"Nonetheless, both divisions have further enhanced their market positions and are well placed for longer term growth. The acquisition of Halifax Estate Agency will complete on January 15 and presents further longer term scale opportunities for the group. Given the strong balance sheet, the group is well placed to consider further value enhancing acquisition opportunities which may arise in the future."