UK estate agent firm axes 315 jobs

In a trading update, the group revealed it cut 200 jobs from its estate agencies in September as the under-performing branches were closed, also axing 115 posts from its surveying division which trades as Chancellors Associates and Barnwoods.

LSL has around 300 Your Move estate agencies across the UK, and another 140 trading as Reeds Rains in northern England.

The group said the branches closed were “nationwide” and would not go into location details.

In a statement it said management was now focusing on increasing fee percentages, growing lettings and managing the introduction of the new Home Information Packs.

“Market conditions are difficult to predict but are expected to remain challenging well into 2008,” the statement added.

LSL said that it was also “reviewing strategic options” for its St Albans-based conveyancing division, which it said was continuing to under perform and is expected to suffer a £1.5m (€2m) write-down this year.

The group is expecting total turnover to be up by 11% in the second half of 2007, with the surveying division up 21%, and the estate agency and financial services arm up 5%.

Underlying profit for the year was also forecast to be in line with expectations, LSL added.

In a trading statement issued last October, LSL said successive interest rate rises were staring to affect confidence in the housing market, but that it remained confident that 2007 results would exceed that of 2006.

Broker Numis said it was expecting underlying pre-tax profits of £33.5m (€45m) for 2007, compared to £32.3m (€43.3m) in 2006.

The securities house added: “Whilst further market deterioration is a risk in the short term, we maintain a positive long-term stance.”