460 jobs at risk as Lloyds sells Halifax estate agencies for £1

Up to 460 jobs were at risk last night after Lloyds Banking Group agreed to sell its Halifax estate agencies chain for £1 to the owner of the Your Move sales and lettings business.

The bank, which is 43% owned by the taxpayer, admitted that 121 bank counters located in estate agencies would close but insisted the Halifax brand would continue to be used by the Lloyds group. The counter closures will result in up to 460 job losses, including 360 full-time roles.

The loss-making business, which operates 218 offices, is being sold to LSL, the parent company of estate agency brands Your Move, Reeds Rains and Intercounty. About 1,050 staff will transfer to LSL.

To facilitate the sale, Lloyds is providing £22m in cash to cover restructuring and rebranding costs, as well as some working capital as part of the disposal.

Union officials made it clear they would oppose compulsory redundancies and Lloyds insisted such forced departures would only be a "last resort".

Ged Nichols, general secretary of union Accord, said: "We also made our view clear to Lloyds that the staff who currently work in the 121 branches with banking counters should have the opportunity to transfer to nearby bank branches. We believe that there is no need for compulsory redundancies."

The deal makes LSL the second biggest estate agency operation in Britain – until now it has been third. Simon Embley, LSL chief executive, said: "The purchase of Halifax Estate Agency heralds a significant step forward in the growth of LSL and its associated estate agency businesses."

Further reshaping of Lloyds' operations is expected once the EU has ruled on the state aid received by the bank – a decision is expected next month. It comes amid speculation about whether Lloyds will participate in the asset protection scheme, the government's toxic insurance plan.