LSL Property Services: a profit-machine in the property sector

LSL covers every area of the residential real estate market and should thrive after its shake-up

Beautiful Sunny Street View in residential district
(Image credit: Getty Images)

Property is a national obsession for the British. There are no fewer than seven house-price indices providing a month-to-month update on house prices and the reports make headline news. The total value of UK residential property stood at nearly £9 trillion at the end of 2022, according to the global real-estate group Savills – several times higher than the collective worth of all equities listed on the London Stock Exchange (£2 trillion). The value of all residential property in the UK is around 4.5 times higher than the total value of the equity market. In the US, the ratio is closer to one-to-one. 

There are 900,000 residential property market transactions every month, with £10 billion of transaction volume, according to HMRC. This makes the residential property market far more important and liquid than the UK equity market. But it is staggeringly inefficient. The market is dominated by thousands of small firms: estate agents who help buyers and sellers find properties, conveyancers who do the paperwork, surveyors and mortgage brokers. That’s not to mention all the ancillary firms, such as insurers, movers and other contractors – heating engineers, for instance, who may need to compile energy performance certificate (EPC) reports. 

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.