The French banking giant BNP Paribas is hunting a buyer for Strutt and Parker, the upmarket British estate agent it bought seven years ago.

Sky News has learnt that BNP Paribas's real estate arm has begun sounding out buyers for the chain, which employs more than 500 people. The move comes amid a spate of corporate activity in the estate agency sector, with anticipated falls in interest rates expected to spur more home buying appetite in the coming months.

Strutt & Parker was acquired by BNP Paribas in 2017, with its commercial arm merged into the French lender's real estate division. The estate agency business has continued to operate under its own brand across dozens of offices in Britain.

It specialises in homes at the premium end of the housing market. A number of other players in the sector are also up for sale, with Lomond Group - which was created from the merger of Lomond Capital and Linley & Simpson in 2021 - being prepared for auction by owner LDC.

The two auctions have emerged as speculation grows about a potential bid for Foxtons, the London-listed estate agent. Foxtons was recently reported to have added bankers at Rothschild as financial advisers in anticipation of a bid.

A spokesperson for BNP Paribas Real Estate said it did "not comment on market rumour"..