Estate agents sell for free

The move, which could cost it up to £10,000 on each transaction, comes as sales have collapsed due to the credit crunch and financial crisis.

A leaked email reveals how a senior sales executive at Lauristons has written to potential clients in south and west London offering to sell their homes "for an unbeatable 0per cent selling fee".

Company insiders said the offer had been agreed by the firm's management last week and is available across its six branches, taking in the lucrative markets of Chelsea, Chiswick, Richmond and Kew. Normally estate agents charge between 1.5 and three per cent commission.

London estate agents are struggling to sell more than two properties a week on average, with fears that many offices will be forced to close down.

The letter from Lauristons invites prospective sellers to contact their local branch "if you are interested or if you know anybody who may be interested in this unique offer".

Some analysts saw it as an attempt to kick start sales. But industry sources immediately slammed the move as a way of killing off competitors and accused Lauristons of undermining confidence in an already struggling market. One senior figure said: "This is a crude attempt to shake independent competition out of the market place. It is a mark of desperation and won't instill confidence in sellers."

Foxtons are the only other estate agent ever to have offered a 0 per cent sales commission, but never in such difficult economic conditions, limiting it to an 'introductory' offer as they aggressively spread into new areas.

Rivals today criticised Lauristons and said vendors should be careful to look at the small print before taking up the offer.

Ed Mead, of Douglas & Gordon, said: "Potential clients need to ensure, for example, that if their property is placed on the market before Christmas but not sold until after the New Year there will still be no fee.

"But in general, when people are looking for a successful agent, one has to suspect that charging 0 per cent commission is not a good sign". London property prices are around 15 per cent down on last year and are forecast to fall by a further 15 per cent in coming months.

But the number of house sales has fallen much more sharply by up to 60 per cent.

Experts say that this is to some extent the result of the credit crunch which made many unable to buy, but also a consequence of buyers staying away in the expectation of better bargains to come.

From the beginning of this month all estate agents have to belong to an approved ombudsman scheme, but the regulator has no powers over the fees which agents charge. Lauristons refused to comment.

Rightmove said today that the level of unsold property on estate agents' books remained historically high last month at an average of 76 due to the lack of buyer activity and sellers' reluctance to accept a lower price.