THERE is an upbeat mood at LSL, the massively expanding York-based provider of residential property and surveying services.

Even as the group waits to tie up its £1 purchase of the loss-making 218-office Halifax estate agency business from Lloyds Banking Group on January 15, it has put out a better-than-expected trading update in advance of its preliminary results due on March 3.

The statement suggests the final six months of last year were “significantly ahead of expectations,” driven principally by the stronger-than-anticipated level of housing transactions in the second half of 2009.

Overall group turnover may be down by four per cent on 2008, but the last six months saw a surge of 21 per cent increase; and the second half increase in estate agency turnover was 42 per cent, adding up to a full year balance of plus five per cent.

Surveying turnover for the second six months fell only by 0.5 per cent with the full year down by 13 per cent.

There are reckoned to be 360,000 mortgage approvals nationally for the second half of the year, compared with 240,000 in the first half, and there was a flurry of sale exchanges last month in a bid to beat the stamp duty deadline. Growth was also supported by continued growth in lettings income.

But the LSL statement remains cautious.

“Activity levels have improved from the unprecedented conditions of 2008, but still remain challenging against historic norms,” it warns.

“Given the macro outlook, the continued shortage of available mortgage finance, and the impact of fiscal tightening on consumer spending, market conditions will remain extremely unpredictable.”

Meanwhile, the LSL board still see the acquisition of Halifax Estate Agency Limited as “presenting further longer term scale opportunities for the group”.

The statement adds: “Given the strong balance sheet, the group is well placed to consider further value-enhancing acquisition opportunities which may arise in the future.”