RNS Number:8337F
LSL Property Services
17 October 2007


For Immediate Release                                     17 October 2007


                           LSL Property Services plc

                                 Trading Update

In our Interim statement released on 9 August 2007, we reported that recent
successive interest rate rises were starting to affect housing affordability and
consumer confidence generally and that lower housing transaction volumes in the
second half of 2007 were anticipated. Since that date, the unexpected events in
the banking market regarding credit availability have further reduced buyer
demand and, as a result, transaction volumes during September and October to
date have been significantly lower than we had expected.

Consequently, we have lowered our assumptions for transaction volumes in our
estate agency business for the remainder of this year and the first half of next
year. Our focus is on improving operational efficiencies and on driving up fees
and other revenue opportunities. Nonetheless, we expect the trading out-turn for
the last quarter and our closing pipeline to be below our original expectations.

Our surveying division has not been entirely immune from the recent difficulties
in the banking market as a number of our key clients are operating at
significantly reduced activity levels. Against this backdrop, the surveying
division continues to perform satisfactorily, benefiting from our recent
contract gains.

The integration of the Cheltenham & Gloucester and Barclays Bank valuation
infrastructure has gone well. However, faced with the current challenges in the
banking market and in order to maintain our operating flexibility into 2008,
further reorganisation and integration costs of up to #1m will be incurred in
this financial year.

Despite the deterioration in the market, we remain confident of delivering a
stronger performance in 2007 than 2006, although the outcome for the financial
year will fall short of our previous expectations. Market conditions are likely
to remain challenging for our agency business well into the first half of 2008,
but we expect to deliver further strong progress in our surveying division,
which now represents a greater proportion of our business. Underlying macro
economic and demographic factors continue to support a strong housing market in
the longer term.


For further information please contact:

Simon Embley, Chief Executive
Dean Fielding, Group Finance Director
LSL Property Services                              01904 715 324
Richard Darby, Nicola Cronk
Buchanan Communications                            020 7466 5000

Notes to editors:


LSL Property Services plc is one of the leading residential property services
companies in the UK and provides a broad range of services to its clients who
are principally mortgage lenders, as well as buyers and sellers of residential
properties. LSL's main operations are its surveying business, which operates
under the e.surv and Chancellors Associates brands, its estate agency business,
which operates under the YOUR MOVE and Reeds Rains brands, and its financial
services business.


For further information, please visit our website: www.lslps.co.uk



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