LSL Property Services, PLC (LSE:LSL, OTC:LSLPF) dropped 14% as it warned it is seeing the full impact of the housing market downturn with surveying services hit hardest.
Numbers for the six months to June 2023 were broadly in line with forecasts, though well down on last year, but the recent change in mortgage market conditions will “significantly impact second half profits”, the property group added.
Increased interest rates resulted in higher same-lender product transfers requiring no valuation service, LSL noted.
Reduced activity in the buy-to-let and equity release markets and purchase market more generally also reduced valuation instructions from lenders.
Total interim revenue was £104 million (£160.9 million) and underlying operating profit £3.5 million (£14.2 million).
Purchase lending fell by 27%, slightly less than the overall market reduction of 30%. Remortgage lending decreased by 15% compared to the market, which fell by 21%.
Net cash at end June was £36 million.
Shares fell 39p to 243p.