Halifax Estate Agents to close one quarter of its branches

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by Lin Freestone

The Halifax is to close 53 of its estate agency branches following a significant decline in the number of house sales made over the past year.

The precise locations of the affected branches have not yet been disclosed as the process of negotiations with staff is still ongoing. It is estimated that approximately 550 people will be affected by the branch closures, but of these about 450 could be transferred to similar roles in bank branches where they will operate as in-house agents.

Halifax Estate Agents will in future concentrate on its core markets in the Midlands and the North, where there are 151 branches. The closure of 53 branches will generate cost savings and safeguard business in towns where the Halifax has a strong market presence.

Recent figures from the National Association of Estate Agents have shown that the average UK estate agent sold just six properties during July this year, down from an average of ten properties sold in July last year.

The monthly house price survey from the Halifax shows that the value of the average home in the UK is approximately 8% less than at the same time last year.

All UK estate agents are suffering from the cut back in mortgage lending. Figures from the Council of Mortgage Lenders indicate that mortgage approval numbers are running at around half the levels seen prior to the beginning of the credit crunch in the summer of 2007.