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Branch closures and Covid hit LSL revenues despite market recovery

Group says its cull of branches earlier this year and the pandemic saw revenues down by 18%.

Nigel Lewis

reeds rains branch

Estate agency giant LSL says Covid and its huge restructuring programme at Your Move and Reeds Rains have combined to batter its revenues this year.

The multi-agency group, which owns 12 brands in total, has seen revenues dip this year by 18% to £214.3 million.

Nevertheless, the group has benefitted from the post-lockdown boom, and has reported its largest sales pipeline for a decade.

LSL now has sales worth £24 million going through the conveyancing process, a 60% increase on the same time last year.

This is the highest level in over ten years in Your Move and Reeds Rains branches, the highest since LSL has owned the nine LSLi brands and the highest in over four years within Marsh & Parsons.

Significant pressure

But LSL says this is putting ‘significant pressure’ in parts of the housing chain, although purchasers’ keenness to complete before the stamp duty deadline means there is ‘no evidence of an increase in residential fall-through trends, although the elongation in the time taken to complete may put pressure on this across the market generally’.

The comments are within LSL’s latest trading update, which reveals strong performances by its surveying and mortgage brokerage arms.

We look forward to reporting on our full year results in the early part of 2021, when we will also set out details of the progress we have made on implementing our strategy,” says David Stewart, Group Chief Executive Officer.

“I would like once again to place on record my thanks to all our staff for their tremendous support they have given LSL this year.”

December 11, 2020

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