500 Jobs At Risk At Halifax Estate Agency

Almost 500 jobs have been placed under threat after Lloyds Banking Group confirmed it is to sell its Halifax estate agency.

The owner of the Your Move sales and lettings business has agreed a deal to take over the division.

LSL Property Services is to buy the business from Lloyds for £1.

The sale will result in the closure of 121 banking counters, and the transfer of 1,051 employees.

Lloyds said the move would result in the loss of approximately 360 full-time roles,

with a further 100 positions also "affected".

David Nicholson, managing director of Halifax Community Bank said: "Halifax Estate Agency is a well established business and, following a strategic review, we believe that it is better able to grow outside the group with a strong existing player in the market such as LSL Property Services plc."

LSL, which also owns the Reeds Rain and Intercounty brands, will have the UK's second largest estate agency network as a result of the deal.

The Accord union said it would press the new owner not to make any compulsory redundancies at the group.

Ged Nichols, Accord general secretary, said: "We will be having early meetings with LSL to discuss their plans for the business and employees' terms and conditions so that we can provide maximum support for Accord members who will be transferring to LSL's employment."

The sale marks the first of the disposals expected from Lloyds as it looks to meet European competition requirements following the receipt of state aid.

Lloyds received around £14.5bn from the Government in the wake of the financial crisis and its takeover of HBOS.

Both Lloyds and fellow bail-out beneficiary Royal Bank of Scotland are under the scrutiny of competition commissioner Neelie Kroes, who has raised concerns they could be seen as distorting the market.

Lloyds, which is 43% taxpayer-owned, is expected to reduce its high street presence to allay these fears.

Last year Halifax closed 53 branches as a result of the housing market downturn and said it would concentrate on its core markets in the Midlands and the North.

Financial News