Halifax to close 53 estate agents

Posted by admin on 23 August, 2008 under Business news | Be the First to Comment

The Halifax has said it is to close 53 of its estate agency branches in a move that will lead to the loss of 100 jobs.

The firm said the closures followed the “significant decline” in the number of house sales over the past year.

Following the changes, the Halifax said it would focus on its core markets in the Midlands and North where it would operate 151 branches.

Estate agents have been hit hard by the recent housing downturn, that has seen the number of transactions plunge.

The number of sales is down by a half compared with last year, and the lack of transactions has hit estate agents’ earnings.

Banks and building societies have cut back mortgage lending dramatically because the credit crunch has dried up the supply of funds available to them.

The latest figures from the Council of Mortgage Lenders showed total mortgage lending in July was down by 27% on a year ago to £24.8bn.

The Halifax said that about 550 people would be affected by the branch closures, but about 450 of these would be transferred to similar roles in bank branches.

It added that of the 100 jobs to be cut, it would aim to achieve the reduction through voluntary redundancy and natural turnover.

News reported by The BBC