Estate agents Countrywide and LSL are in merger talks to create “the UK’s biggest property group”, reports Sarah Provan in the Financial Times. If the all-share deal goes ahead it would bring together LSL brands such as Your Move and Marsh & Parsons with Countrywide’s Hamptons International and Gascoigne-Pees to create a group worth about £500m with 14,000 employees.
The hope is that the tie-up will allow both firms to eliminate costs by having one head office and combining IT systems, says Julia Kollewe in The Guardian. There are also likely to be “scores of branch closures and job losses”, since both firms are struggling. Countrywide is doing particularly badly and has seen its market capitalisation fall from £750m when it floated in 2013 to around £111m today as it has “struggled with mounting losses and a heavy debt burden”. Indeed, Countrywide’s founder Harry Hill recently said that the business is “beyond salvation”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Inheritance tax bills exceed £500,000 for almost 10% of estatesThousands of estates have had to pay a six figure inheritance tax bill – and the issue looks set to worsen.
-
Can gold protect you against inflation?Inflation is on the rise in the UK. Could investing in gold protect your portfolio against rising prices?
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
-
Buy-to-let returns fall 59% amid higher mortgage ratesBuy-to-let returns are slumping as the cost of borrowing spirals.
