Two of the largest lettings agencies propose to merge...

The Property Franchise Group, the UK's largest property franchise brand, wants to merge with long-time rival Belvoir.

Both are listed on the stock exchange where an announcement this morning pledges to create “a leading property franchise business.”

The Property Franchise Group's brands are Martin & Co, EweMove, Hunters, CJ Hole, Ellis & Co, Parkers, Whitegates, Mullucks & Country Properties.

The combined group would have a market capitalisation of approximately £214.4m and more than 930 property franchise locations, managing approximately 152,000 tenanted properties across the UK and will be expected to sell more than 28,000 properties per annum.

Paul Latham, Non-Executive Chairman of TPFG, comments: "I am delighted to confirm that we have reached an agreement with the Belvoir Board and major Belvoir Shareholders on the Merger with Belvoir. We believe that the Merger represents a compelling opportunity for all shareholders."

"Belvoir brings further breadth through its nationwide network and a financial services business which will be complementary to our current offering. The Merger will enable us to continue to grow in the sector and, ultimately, deliver greater value to shareholders of the Combined Group."

Commenting on the Merger, Jon Di-Stefano, Non-Executive Chairman of Belvoir, says: "The merger of Belvoir and TPFG combines two businesses with much in common, each supporting a network of entrepreneurial franchises, and will create one of the UK'slargest multi-brand lettings and estate agency groups combined with a growing financial services business. With their complementary geographic footprints providing both scale and diversification across a variety of high street and hybrid brands combined with high levels of recurring revenue, we feel sure that the Combined Group will provide a robust platform from which to grow."

Belvoir Group’s figures for the first half of its most recent financial year saw a jump of 10 per cent in profits to almost £4.4m, largely on the back of lettings income. Meanwhile TPFG increased group revenue to £13.2m in the first half of the year with profit before tax, increasing 11 per cent to £4.2m.