Foxtons has confirmed that it is considering selling its mortgage broking business, Alexander Hall.

The estate agency made a statement on the stock exchange following speculation in the press.

It is understood that potential buyers have been approached with a prospectus.

The stock market statement says: “Foxtons confirms that it is reviewing strategic options for Alexander Hall Associates Limited, its mortgage broking business, which could include the potential sale of the business.

“A further announcement will be made if and when appropriate.”

Foxton’s shares rose by 5% from 47.3p to 49.59p in early morning trading following the news, but they have since dropped back to 47.75p at the time of writing.

The potential sale comes amid a wave of consolidation in the intermediary sector.

It follows news that online broker Mojo looks set to be snapped up by RVU, the parent company of Confused.com and Uswitch.com, in a deal agreed earlier this month.

Within days of the announcement, US mortgage lender Better purchased rival online broker Trussle.

Alexander Hall was founded more than 25 years ago and has been a part of Foxtons since the 1990s.

Foxtons was originally founded in 1981 by Jon Hunt, with its first branch in Notting Hill.