Estate agent LRG eyes £800m sale amid spectre of Budget tax raid

One of Britain's biggest property bureau groups is drafting up plans for an £800m merchantability amid speculation that Rachel Reeves, the chancellor, is plotting a caller taxation raid connected homeowners successful her autumn Budget.

Sky News has learnt that LRG, which is owned by the American buyout steadfast Platinum Equity, is being groomed for an auction that would instrumentality spot during the coming months.

Bankers astatine Rothschild person been appointed by Platinum to oversee talks with imaginable bidders.

Platinum acquired LRG, which owns brands including Acorn, Chancellors and Stirling Ackroyd, successful January 2022.

The property bureau group, which handles residential income and lettings, trades from much than 350 branches and employs astir 3,500 people.

City sources said this play that Platinum believed a valuation for the concern of good implicit £700m was achievable successful a sale.

The US-based backstage equity capitalist bought LRG - past known arsenic Leaders Romans Group - from Bowmark Capital, a smaller buyout firm.

Bidders successful this auction are besides apt to see fiscal investors.

Some of LRG's brands person a agelong past successful the UK spot industry, with Portico tracing its origins arsenic acold backmost arsenic 1818.

The company, present tally by main enforcement Michael Cook, manages 73,000 properties and past twelvemonth handled spot income worthy £3.6bn.

Although prospective bidders for LRG person already begun being sounded out, an auction of the radical is apt to instrumentality respective months to conclude.

Industries specified arsenic banking, lodging and gambling person been gripped by suggestions that the chancellor volition people them successful an effort to rise tens of billions of pounds successful further revenue.

Last month, location prices fell unexpectedly - albeit by conscionable 0.1% - amid warnings from economists astir the interaction of speculation implicit a taxation raid connected homeowners.

Reports successful the past 2 months person suggested that Ms Reeves and her officials astatine the Treasury are considering measures specified arsenic an overhaul of stamp duty, a mansion taxation and the ending of superior residence alleviation for properties supra a definite value.

Her Budget, which volition instrumentality spot successful precocious November, is inactive much than 2 months away, suggesting that meaningful discussions with bidders for businesses specified arsenic LRG are improbable to instrumentality spot until the interaction of caller taxation measures has been decently digested.

Robert Gardner, main enforcement astatine Nationwide, the UK's biggest gathering society, said betterment of spot taxes was overdue.

"House prices are inactive precocious compared to household incomes, making raising a deposit challenging for prospective buyers, particularly fixed the aggravated outgo of surviving pressures successful caller years," helium said earlier this month

Britain's property bureau marketplace remains comparatively fragmented, with groups specified arsenic LRG spearheading myriad acquisitions of tiny players with less than a fistful of branches.

Among the different larger operators successful the market, Dexters - which is chaired by the erstwhile J Sainsbury brag Justin King - is besides backed by backstage equity investors successful the signifier of Oakley Capital.

Few property agents present person their shares publically traded, with the equity of Foxtons Group, 1 of London's astir salient spot agents, present worthy conscionable £168m.

Platinum Equity declined to comment.