LSL Property Services PLC on Wednesday blamed macroeconomic headwinds suppressing the UK mortgage lending market as it reported a lower half-year profit.

The Newcastle Upon Tyne, England-based provider of services to mortgage intermediaries and franchised estate agencies said pretax profit from continuing operations fell 20% to £7.1 million in the first half of 2023 from £8.9 million the previous year.

Revenue declined 34% to £72.5 million from £110.2 million.

However, the company maintained its interim dividend at 4 pence per share.

LSL explained that market conditions in the first half were ‘challenging’ with expected improvements in consumer confidence hindered by high inflation and interest rate rises.

It noted the UK mortgage lending market was ‘suppressed’ during the first half, with LSL’s total lending 4% lower than in the first half of 2022.

Looking ahead, LSL said it made ‘significant progress to date in 2023’ despite challenging market conditions. ‘LSL remains very well-positioned to benefit when market conditions improve, and the board remains confident of our profitability over the business cycle,’ LSL Property said.

LSL Property shares were 1.9% lower at 255.00 pence each on Wednesday morning in London.

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