LSL Property Services has reported a 17% rise in annual profits and record margins with its estate agency franchising operation delivering improved profitability despite a flat market and the loss of a major contract.
The group, which operates across surveying, mortgage distribution and franchised estate agencies, posted underlying operating profit of £32.6m for the year to 31 December 2025, up from £27.8m the previous year, while revenue increased 6% to £182.9m. Underlying operating margin rose to a record 18%.
Within the group, the Estate Agency Franchising division remained a key contributor to profitability, with underlying operating profit rising to £8.3m from £7.8m and margin improving to 31%, up from 29%, as the business benefited from operational efficiencies and scale.
Revenue in the division slipped slightly to £26.5m, down from £27.1m, after the Ministry of Defence brought a significant Land and New Homes contract back in-house, but the core franchise network continued to expand.
PROPERTY UNDER MANAGEMENT
LSL said supporting franchise growth remained a priority, with loans provided during the year to help franchisees acquire 10 lettings books, adding around 1,400 properties to the managed portfolio.
The total number of properties under management remained stable at 37,451, while average lettings royalties per property increased by around 3%.
The group’s franchised network grew to 293 branches, covering more than 65% of UK postcodes, and residential sales activity outperformed the wider market, with sales-related royalties up 12% year-on-year compared with a 10% rise in transactions nationally.
STRONG DELIVERY
Chief executive Adam Castleton (main picture, inset) said the results reflected strong delivery across the group, with the franchising model continuing to prove resilient.
“2025 has been a year of strong delivery and building momentum for LSL. We improved profitability across each Division, achieved record margins and generated strong cash, while continuing to invest for future growth.
“Markets are evolving, and so are we. 2025 has been a year of significant activity for the Group. We are focused on disciplined execution and converting the scale and capability of the Group into sustained profit growth and continued high returns on capital.”
Across the wider business, LSL increased its share of the purchase and remortgage market to 12% and continued to invest in technology, including automated valuation tools and a new broker platform.
The company said trading in early 2026 has been in line with expectations, with the board confident the group can deliver further profit growth despite continued uncertainty in the housing market.
