TIDMLSL
RNS Number : 6934W
LSL Property Services PLC
27 April 2021
27 April 2021
LSL Property Services plc ("LSL" or "Group")
LSL announces five-year agreement to provide digital and
face-to-face mortgage and protection advice to The Property
Franchise Group's expanded network of over 430 estate agency
offices
As part of its strategy to grow its market share in Financial
Services, LSL Property Services plc ("LSL") announces that it has
reached a long-term agreement with the UK's largest property
franchisor, The Property Franchise Group plc ("TPFG"), to offer
mortgage and protection advice services to all TPFG's franchisees,
including those recently incorporated as a result of its
combination with Hunters Property Ltd. The Property Franchise Group
now has over 430 physical office locations, conducts the sale of
circa 23,000 properties per annum and manages in excess of 73,000
tenanted properties.
The agreement is for a minimum of a five-year period and means
that LSL will be providing digital and face-to-face mortgage and
protection advice to the customers of TPFG and TPFG's franchisees.
TPFG franchisees will be provided with a range of options via LSL's
award winning PRIMIS Mortgage Network. Franchisees will be offered
the opportunity either to take on their own mortgage adviser and
become an Appointed Representative of PRIMIS, or to refer their
customers to existing PRIMIS Appointed Representatives, including
LSL's in-house mortgage brokers.
LSL is already one of the largest providers of services to
mortgage intermediaries and mortgage & protection advice to
estate agency customers completing cGBP32.6bn of mortgages in 2020.
It currently represents around 9% of the total purchase and
remortgage market with over 2,600 advisers.
This agreement underlines the opportunity for further growth of
its Financial Services businesses, leveraging LSL's existing
leading positions in the mortgage advice market. This contract will
enhance the Financial Services Division profit after an initial
12-18 month investment period requiring one-off transition and
integration costs.
Details of the agreement
The agreement covers the five year period to April 2026 during
which time LSL's Financial Services businesses will be recommended
by The Property Franchise Group to its franchisees as the preferred
provider of mortgage and protection advice.
LSL will be deploying an innovative service which combines
face-to-face advisors with a central team providing video and
telephone advice, all supported by Mortgage Gym technology,
following LSL's purchase of this technology on 11(th) February
2021. Face-to-face advice will be provided by introduction to local
advisers with franchisees also having the option to offer mortgage
and protection advice as an Appointed Representative of PRIMIS
Mortgage Network.
Following the completion of the agreement, LSL has commenced the
process to recruit the additional advisers required to meet the
expected volumes arising from referrals from c23,000 house sales
completed annually by TPFG and its franchisees. It is anticipated
that the service will be fully operational by the end of 2021.
Thereafter, volumes are expected to continue to grow as the service
is embedded and, in time, benefits from repeat business from
established clients.
As part of this agreement, LSL and TPFG also plan to work
together to develop a specialist mortgage advice service designed
specifically for landlords. The aim of this collaboration will be
to create a market-leading mortgage proposition that can support
the needs of both LSL and TPFG landlords.
Use of Mortgage Gym technology
Mortgage Gym has developed an innovative digital platform that
confirms mortgage eligibility within 60 seconds, matching borrowers
to potential lenders. As well as the benefits to customers, it also
improves adviser productivity and, through its Customer
Relationship Management system, helps engage customers at the right
time through the process. Its use will enable advisers to quickly
and cost-effectively confirm mortgage eligibility of a potential
house purchaser, including the likely sums that could be borrowed,
enabling both the potential purchaser and estate agent to progress
a transaction with confidence. The technology also ensures that
both the potential purchaser and estate agent have a clear
understanding of the potential budget when searching for a new
home.
David Stewart, Group Chief Executive Officer of LSL, said:
"I am delighted we have been selected by The Property Franchise
Group plc as the preferred long-term provider of mortgage and
protection advice. We have previously set out our ambition to
accelerate the growth in our Financial Services Division including
PRIMIS Mortgage Network and this agreement underlines the scale of
this opportunity. It also provides early validation of our decision
in February 2021 to purchase Mortgage Gym, whose technology gives
us a clear competitive advantage and helped win the support of The
Property Franchise Group plc. I look forward to providing more
details when we release our Preliminary Results tomorrow."
Gareth Samples, Group Chief Executive Officer of The Property
Franchise Group, said:
"We have publicly committed to growing the financial services
capability available to our network and LSL has emerged quickly as
the best option for our franchisees. I am delighted that we will
now be able to help them to generate additional income, in
partnership with LSL. Together we will develop a new digital
mortgage journey that really meets the needs of our customers and
our franchisees. I believe LSL has an unparalleled understanding of
how to provide high quality mortgage and protection advice to
estate agency customers and I look forward to building a
market-leading digital and face-to-face service to the significant
benefit of both groups."
Notes on LSL
LSL is one of the largest providers of services to mortgage
intermediaries and mortgage & protection advice to estate
agency customers, completing GBP32.6bn of mortgages in 2020. It
represents approximately 9% of the total purchase and remortgage
market with around 2,600 financial advisers. PRIMIS Mortgage
Network was named Mortgage Network of the Year by both Moneyfacts
and Mortgage Introducer in their 2020 awards, as well as Best
Network 300+ ARs by Mortgage Strategy.
e.surv is one of the UK's largest provider of surveying and
valuation services, supplying seven out of the ten largest lenders
in the UK, employing over 500 operational surveyors, and performing
over 500,000 valuation and surveys per annum for key lender
clients. It was named Best Surveyor/Valuer at the 2020 Mortgage
Strategy awards.
LSL operates a network of 226 owned and 130 franchised estate
agency branches, with brands that include Your Move, Reeds Rains
and Marsh & Parsons.
PRIMIS Mortgage Network is the trading style of First Complete
Limited, Advance Mortgage Funding Limited and Personal Touch
Financial Services Limited. All networks are authorised and
regulated by the Financial Conduct Authority.
For further information, please contact:
David Stewart, Group Chief
Executive Officer
Adam Castleton, Group Chief
Financial Officer
------------------------------------
LSL Property Services plc investorrelations@lslps.co.uk
------------------------------------
Helen Tarbet
------------------------------------
Sophie Wills
------------------------------------
Buchanan 0207 466 5000 / LSL@buchanan.uk.com
------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
CNTEDLBLFZLXBBE
(END) Dow Jones Newswires
April 27, 2021 02:00 ET (06:00 GMT)
Lsl Property Services (LSE:LSL)
Historical Stock Chart
From May 2024 to Jun 2024
Lsl Property Services (LSE:LSL)
Historical Stock Chart
From Jun 2023 to Jun 2024