LSL PROPERTY Services yesterday said it now expected the group's annual profit to be "substantially lower" than previously forecast due to subdued activity in the British mortgage market.

The British housing sector is in the middle of a pronounced slowdown, as high mortgage costs and tight credit conditions eat into demand.

The Bank of England has raised interest rates 14 times in a row since December 2021 to 5.25 per cent in its bid to tackle raging inflation, piling pressure on the property market.

The company, which provides services to mortgage intermediaries and estate agent franchisees, said it expected there would be lower levels of purchase and remortgaging activity than previously forecast for the second half of the year.

LSL said its performance in the six months to 30 June, particularly in its surveying and financial services division, was impacted by significant changes in the mortgage market.

The company has about 2,700 advisers and represents around 10 per cent of the total purchase and remortgage market in the UK.

The warning came on the same day new data was released showing house prices are falling across the UK.

According to Halifax, the average UK house price fell for the fourth month in a row in July, bringing prices down 2.4 per cent on an annual basis.

The south east reported the biggest decline, with prices down 3.9 per cent.

Reuters

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