LSL has revealed that a new company is to take over 23 of its branches run by some well-known estate agencies.

Southern Homemove is to purchase the franchises from LSL for the offices currently run by Goodfellows, Hawes & Co, Lauristons and Davis Tate.

LSL announced last week that its entire owned estate agency network of 183 branches will become franchises.

An update statement to the City from LSL this week reads: “As part of the steps taken to affect franchise agreements, these companies have been acquired by a new franchisee, Southern Homemove Limited in return for a long-term royalties franchise agreement and de minimis consideration for assets transferred”.

Bernadette Keating, who is joint MD at Goodfellows Lettings, is one of the Southern Homemove’s directors. It was only registered with Companies House in March, with its HQ listed in Bishop’s Stortford, Hertfordshire.

Redundancies

LSL has confirmed there will be around 30 redundancies as a result of the switch to franchises. “As part of the change, we confirm that we have 1,200 Estate Agency Division colleagues transferring to the franchisees….there will be some functions with reduced headcount,” a company spokesperson says.

“At this stage, we think there may be around 30 redundancies in the near future.”

Long-term franchise agreements have been reached for 143 of its branches with agreements for the remaining 40 branches at an ‘advanced stage’, the company revealed in a statement to the City on Thursday.

Prior to this restructure of its estate agency business, LSL operated a network of 120 franchise branches.

LSL has appointed Paul Hardy as MD of its estate agency franchise business. He previously held senior roles in financial services and as finance director in the estate agency division.