Housing downturn hits Halifax

Updated 10.21 Fri Aug 22 2008

Keywords: credit crunch, economy, estate agents, Halifax, housing market

Halifax Estate Agents is closing 53 of its branches as a result of the housing market downturn.

A total of around 550 staff will be affected by the move, but Halifax said around 450 of these people, many of whom are mortgage advisers, would be transferred to similar roles in its banking branches over the coming four months.

The closures will lead to up to 100 job cuts

But up to 100 jobs will be cut, either through natural staff turnover or voluntary redundancy.

It said the move followed a need to reshape the business in the current market conditions, following a significant decline in housing transactions in recent months.

The group did not give the location of the affected branches as it is still in the process of contacting staff.

But it said following the changes Halifax Estate Agents would concentrate on its core markets in the Midlands and the North, where it has 151 branches.

Estate agents have been hit hard by the combination of falling house prices and the credit crunch, with transactions running at less than half of last year's level.

Buyers are putting plans to move on hold until the outlook for the market becomes clearer, while those who still want to go ahead with a purchase are struggling to raise the finance they need.

Recent figures from the National Association of Estate Agents showed that estate agents sold an average of just six properties each during July.