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Warning by real estate company – Brexit hits property market

Brexit property

Britain’s second largest estate agency firm, LSL, issues profits warning as its shares drop to lowest level in four years.

The agency has warned annual profits will be well below expectations, blaming uncertainty in the property market caused by the vote to leave the EU.

In an unscheduled trading update, LSL Property Services, whose brands include Your Move and Marsh & Parsons, said business slowed in the run-up to the referendum on 23 June and had deteriorated since.

LSL said it had a strong first three months of the year as buyers snapped up properties before stamp duty increases in April. But business slowed in the second quarter as the referendum approached and potential buyers and sellers became wary.

The company said, “The EU referendum outcome has led to further consumer uncertainty and LSL’s post-referendum trading performance has reflected these market conditions. LSL now expects that full-year group operating profit will be significantly lower than previously anticipated”.

Paul

The author Paul