March 2007

Preliminary Results PresentationYear Ended 31 December 2006

Simon Embley, Group Chief Executive OfficerDean Fielding, Group Finance Director

2

Key messages

Growing profitability of estate agency

division

Growing profitability of estate agency

division

1. Overview

Substantial experience of

acquisitions and corporate reform

Substantial experience of

acquisitions and corporate reform

Diversified business model with some

resilience to property cycle

Diversified business model with some

resilience to property cycle

Attractive margins and strong cash

generation

Attractive margins and strong cash

generation

Growing and highly profitable surveying

division

Growing and highly profitable surveying

division

3

Strong maiden results Turnover up 46% to £197.5m Underlying operating profit¹ up 73% to £32.3m

Organic growth from Your Move and e.surv of 48% Underlying operating profit margin¹ up from 13.9% to 16.4% Adjusted proforma earnings per share² up 83% to 19.8p

Strong underlying operating results from all divisions Surveying profits up 21% to £21.0m Estate Agency and Financial Services profits up from £1.7m to £12.6m (incl. first full year’s contribution from Reeds

Rains)

Mortgage lending up circa 50% to £3.0bn supported by investment in Linear

Excellent cash flow generation with cash generated from operating activities after capital expenditure £28.2m (2005: £15.2m)

Net debt³ reduced to £34.2m

Well positioned for further growth both organically and from acquisitions

Highlights

¹ Before exceptional costs and amortisation² Adjusted to reflect underlying operating profit and the shares in issue post IPO

³ Financial liabilities less cash and cash equivalents

4

Financials at a glance

1.2

13.418.7

32.3

0.9%

10.1%

13.9%

16.4%

0

5

10

15

20

25

30

35

2003 UK GAAP 2004 IFRS 2005 IFRS 2006 IFRS

EB

ITA

(£m

)

0%2%

4%6%

8%10%12%

14%16%

18%20%

EB

ITA

mar

gin

EBITA Margin

EBITA

1. Overview

2006 Group Revenue Split

* before exceptional costs and amortisation of intangible assets

Revenue 2006 2005 % changeEstate Agency 102.6 63.8 61FS 20.9 14.0 48EA & FS 123.5 77.8 58Surveying 74.0 57.0 30Total 197.5 134.9 46Underlying operating profit*Estate Agency 13.4 3.7 262FS -0.8 -2.0EA & FS 12.6 1.7 641Surveying 21.0 17.4 21Unallocated -1.3 -0.4Total 32.3 18.7 73

Group Financial Overview2006 Group EBITA Split

(excluding unallocated costs)

A track record of growing profitability across all business segments

Source: Company Accounts

5

Strong Cash Flow Strong cash generation with minimal capex requirement……

…….solid financial platform to make acquisitions and pay dividends

Business significantly cash generative

Low capex requirement: £2.1m (2005: £1.8m)

Net cash from operating activities to EBITDA ratio: 80% (2005: 70%)

Business has significant debt flexibility

Net debt at 31 December £34.2m

Group credit facility of £79.5m

Net debt to operating profit ratio of 1.06 to 1.0

Business well placed for future dividends

Long term earnings growth potential

Interim maiden dividend for 2007

Dividend payout ratio of 30%-40%

IFRS

Cash Flow Statement Year ended Year ended

£m 31-Dec-06 31-Dec-05

EBITDA 35.0 21.7

Other Movements 0.4 -

Movement in working capital 5.2 1.0

Interest paid (4.5) (3.3)

Tax paid (5.8) (2.5)

Capex (2.1) (1.8)

Net Cash from operating activities 28.2 15.2

IFRS

*

*Includes £1.3m of B share dividend

6

Operational Performance: Surveying

e.surv 2006 2005 Change

Turnover (£m) 68.3 56.4 21%

Underlying Op. profit (£m) 20.4 17.6 16%

Margin (%) 29.9 31.2

Other brands*

Turnover (£m) 5.7 0.6

Underlying Op. profit (£m) 0.6 (0.2)

Margin (%) 10.5 Nil

Total

Turnover (£m) 74.0 57.0 30%

Underlying Op. profit (£m) 21.1 17.4 21%

Margin (%) 28.5 30.5

e.surv KPI’s

Market share growth of circa 32% (by jobs managed)

Supported by new contract wins

Employed surveyors increased to 316 (2005: 262)

Productivity per surveyor (e.surv) maintained @ 6 jobs/day

* Other brands include Reeds Rains surveying division from 1.10.05 to 30.9.06, and Chancellors Associates from 1.7.06

2006 2005 Change

Mortgage approvals (millions)

3.5 3.4 5%

Jobs managed 935,256 674,730 38%

Market share (approx) 27% 20% 32%

Jobs performed 433,870 378,328 15%

7

Future Growth: Surveying

Lender (workforce management) Acquisition of independents Organic growth from

Market share gains and increases in jobs performed Investment in new product development, such as

Energy Performance Certificates (EPC’s)

9 Months 2006

12 Months 2005

% change

No. of surveyors 27 28

Turnover (£m) 2.4 2.6

Annualised turnover (£m)

3.2 2.6 23

Income per surveyor (£’000)

118 93 27

Market shares (based on number of surveyors)

35%30%

30% 5%

Source: Company estimates

Reeds Rains Surveying Performance

3. Surveying

Chancellors Associates

Growth opportunities across the sector

Reed Rains (RR) surveying division was achieved as part of the RR acquisition in Oct 2005

The division was absorbed into e.surv at the end of Sept 2006

Chancellors Associates was acquired with effect from 1 July 2006

The company utilises self employment surveyors

12 Months 2006

12 Months 2005

% change

Turnover (£m) 6.2 4.6 35

8

Operational Performance: Estate Agency & Financial Services

Reeds Rains

Excellent results, profit margin at c.20%

Increased fees (1.22% to 1.31%) Conveyancing and financial services income

Strong brand and management team

Your move

Improving profit and margin

Fees fell marginally

Scope to improve margin

Other businesses

Investment in developing businesses:-

Homefast , Linear, Home Inspectors,

First Complete

Contributed to lending growth from £2bn to £3bn

Future profit stream and value

2006 2005

Turnover (£m)

Your Move

EA 63.8 54.5

FS 13.0 12.3

Total 76.8 66.8

Reeds Rains

EA 34.6 6.8

FS 6.1 1.7

Total 40.7 8.5

Other 5.8 2.5

Total Turnover EA & FS 123.3 77.8

Underlying Op. profit (£m)

Your Move 6.3 0.4

Reeds Rains 8.0 2.2

Other (1.7) (0.9)

Total 12.6 1.7

Margin (%)

Your Move 8.2 0.5

Reeds Rains 19.7 2.8

Total 10.2 2.2

* RR profit excludes surveying

9

Estate Agency Organic GrowthLSL growing presence and proven track recordLSL growing presence and proven track record

Expansion through franchising

0

10

20

30

40

50

60

70

80

90

100

2003 2004 2005 2006

No. branches

Franchise – existing Franchise – new

Source: Company data

54

67

8

92

4. Estate Agency & Financial Services

Opportunities for organic growth

Franchise footprint growing

Opportunity to extend estate agency revenues via: New Homes Part exchange Auctions Lettings

Kent & Sussex YM: 46YMF: 16

Hampshire & South WestYM: 32YMF: 12

Scotland & North EastYM: 35YMF: 20RR: 26

CentralYM: 37YMF: 29RR: 12

MidlandsYM: 26YMF: 5RR: 88RRF: 3

LondonYM: 21YMF: 7

WalesRR: 5

Combined branch network (December 2006)

YM – Your Move, RR – Reeds Rains, YMF – Your Move franchise, RRF – Reeds Rains franchise

10

Acquisition Strategy

Strong management team

Strong brand

Under leveraged other services

To be a sector consolidator

Large fragmented market (branch market share)

Source: Company Data

20%

10%

70%

Value added (Reeds Rains performance)

Net Acquisition Price(1) £20m

FY 2005 Operating Profit £3.8m

FY 2006 Operating Profit £8.4m

Source: Company reports

(1) Reeds Rains acquired for effective gross value of £26m including £3m of cash and £3m sale and lease back. Minorities bought out between July and September 2006

Acquisition criteria

Limited number of large targets

Smaller brands also being considered

Recently acquired a majority stake in a 5 branch chain at a valuation of £3m

Strong management and local brand

Acquisition pipeline

Reeds Rains excellent financial payback

11

Diversified Business Model

Panel manager in surveying Providing operational flexibility

Surveying a bigger percentage of profits than competitors Surveying profits less cyclical

Potential to grow margins and profits in estate agency Some downside protection by reducing cost and growing new income streams

Franchising Growing franchise footprint giving income growth with low fixed costs

Investment in Hometrack Providing an insight into the AVM market and a hedge

Opportunity from EPCs Investment in new product development New value creation beyond 2007

Some resilience to property cycle

12

Market Outlook and Current Trading

Market remains robust despite interest rate rises

Activity in Q4 strong with EA having a strong pipeline

Encouraging activity levels in Q1 to date

Optimistic about 2007 subject to:

future interest rate changes

introduction of Home Information Packs planned for June 2007

Source Bank of England, No of secured lending approvals (not seasonally adjusted)

Mortgage approvals 1998 - 2006

1,6

49 1

,99

2

2,0

97

2,8

08

3,5

66

4,1

06

3,6

50

3,3

81

3,5

34

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

To

tal

nu

mb

er

(00

0)

0

50

100

150

200

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

Ho

usi

ng

Tra

nsa

ctio

ns

(000

)

0

2

4

6

8

10

12

14

16

UK

Inte

rest

Rat

e

Monthly Housing Transactions UK Interest Rate

Source: National Statistics, Bloomberg

UK housing transactions and interest rate

13

Summary

Strong maiden results

Strong cash generation – net cash from operating activities of £28.2m

Net debt down to £34.2m

Activity levels in 2007 to date are encouraging

Interest rates and Home Information Packs could impact the market

LSL well positioned to respond to the housing cycle

92 franchise branches operational at year end

Additional growth in lending targeted via Linear

Increasing market share in surveying

EA margin and profit growth

Energy Performance Certificate investment opportunity

One small EA acquisition completed

Consolidation opportunities across all segments

Growth ambitions supported by strong balance sheet

Financial Results

Organic Growth Acquisition Growth

Market Outlook and Current Trading