LSL Property Services has reported a strong trading performance for the year ended 31 December 2025, with improved profitability across all divisions and accelerating momentum within its estate agency franchise network.
In a pre-close trading update yesterday morning the group said full-year results are in line with board expectations, supported by a strong second half of the year.
Group revenue increased by around 6% to approximately £183m, while underlying operating profit is expected to rise by more than 15% year-on-year. Operating margin reached a record high of around 18%, driven by cost discipline and operational efficiencies.
Within the Estate Agency Franchise (EAF) division, LSL reported continued progress against its strategy to build higher-quality, more resilient recurring income streams.
LETTINGS BOOK ACQUISITIONS
During 2025, franchise partners completed 10 lettings book acquisitions, more than three times the number completed in 2024, reflecting a sharp acceleration in activity and a renewed focus on long-term income stability.
In January 2026, the group also completed the bolt-on acquisition of National Search Service (NSS), a leading property search company, using existing cash resources. The acquisition enhances LSL’s conveyancing services offering for franchise partners and is expected to be earnings accretive in its first year, strengthening the proposition available to agents operating within the network.
While residential market conditions remain mixed, LSL said its estate agency businesses have limited exposure to subdued Prime and Outer Prime London markets and are instead benefiting from improving transaction pipelines in regional markets.
The group added that early 2026 trading has started positively, with increased refinancing activity supporting overall market confidence.
SURVEYING & VALUATION
Across the wider group, the Surveying & Valuation division signed its first automated valuation model contract with one of the UK’s largest banking groups, while the Financial Services division continued to grow market share. LSL also highlighted further progress at its Pivotal Growth joint venture, which continues to consolidate mortgage advice firms and scale profitably.
LSL ended the year with net cash of £27.8m and has announced a new £12m share buyback programme following the completion of its previous £7m programme, reflecting strong cash generation and balance sheet strength.
STRONG PERFORMANCE
Adam Castleton (main picture), Group Chief Executive Officer, told the City: “LSL has delivered a strong performance over the period. Underlying Operating Profit was up in all three divisions and our central costs reduced – we achieved a record high Group Operating margin.
“The Group saw an acceleration in our revenue and profit in the second half of the year and we have started 2026 in line with our expectations.
We further strengthened our Group growth drivers through the acceleration of our estate agency franchise partners acquiring lettings books; a bolt-on acquisition in our Estate Agency Franchise Division; and signing our first AVM deal by our Surveying & Valuation Division. As we start 2026, we are working at pace on further growth initiatives.
“With our strong financial performance and a highly resilient, cash generative business model we are returning cash to shareholders through our enlarged share buyback programme. I am excited about the opportunities ahead for the Group, as we continue to drive forward success in our core businesses and increasingly working together for the benefit of the wider Group.”
