LDC, the private equity division of Lloyds Banking Group, said it has backed the creation of a new UK-wide lettings and estate agency group in a £100 million transaction to merge Lomond Capital and Linley & Simpson.

“The new group has a combined portfolio of over 22,000 properties under management and major hubs in private rental hotspots including Aberdeen, Birmingham, Brighton, Edinburgh, Hull, Leeds, Manchester, Sheffield and York,” said LDC.

“The group brings together some of the UK’s strongest high street letting and estate agency brands including Linley & Simpson, Thornley Groves, Brand Vaughan, John Shepherd, Stonehouse and Braemore.

“With access to further acquisition facilities provided by LGT Capital Partners, the business will now look to strengthen its nationwide network through complementary acquisitions and organic growth.

“Increased regulation, the recent abolition of tenant fees, a fall in the sales market in recent years and an ageing ownership profile have all driven consolidation opportunities in the private rental sector.”

Lomond Capital executive chairman Stuart Pender said: “Market conditions in the private rental sector are well suited to continued growth through consolidation.

“We are consolidating fragmented regional markets, enhancing the proposition the sector offers to clients and maintaining a local, on-the-ground approach which brings significant benefits to landlords and tenants.”

Lomond Capital was advised by Dickson Minto, Deloitte and Dow Schofield Watts.

Linley & Simpson was advised by Freeths and TLP Capital.