In a statement, LSL said the purchase is not expected to have an impact on the group’s earnings lines for 2010.

LSL Property Services owns surveyor e.surv and has the second largest estate agency network in the UK with 550 branches, having recently acquired the Halifax estate agency operation. In 2009, LSL Property Services reported pre tax profits of £28.3m.

Home of Choice, which began trading in 2005, has over 500 mortgage advisers and said it is responsible for placing over £2bn of UK mortgage lending each year.

Simon Embley, chief executive of LSL Property Services, said: “Home of Choice is an acknowledged leader in its field and I look forward to working in partnership to build on the solid foundations of this high quality business.

“Strategically, this acquisition will strengthen our relationships with key lending clients, thereby providing a significant opportunity to leverage our financial services assets across the group. This acquisition realistically makes us one of the leading mortgage distributers in the UK.”

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Gerry O’Brien, chief executive of Home of Choice, added: “I am delighted that we have attracted the investment of LSL Property Services, one of the best known and respected businesses in the UK residential market. LSL is a financially secure parent and its strong balance sheet gives us the investment backing to further grow the business.

“My fellow directors and I set out five years ago on a journey to build the number one business network for advisers. The feedback I have received already from our adviser network has been overwhelmingly positive – like me they are excited about the new opportunities afforded by a new parent company to continue to grow and develop a high quality and robust network.”