Humberts, the estate agency, is in takeover talks with several firms after it reported a £17 million loss yesterday. Humberts said that it had been hit hard by the slowing property market, reaching a “tipping point” in June last year.

It said that since then the credit crunch and Home Information Packs (HIPs) had also hit business, which has 80 branches and employs 714 people.

The company, based largely in the south east of England, said that its discussions with the suitors followed its announcement of an initial approach in January.

The group’s turnover grew by 135 per cent in the year to September 2007, but a £18.4 million writedown of its acquisitions contributed to its loss. It warned that further losses were likely as the property market continued to cool. The group is now set to sell its non-core assets and possibly some of its businesses.

The company’s shares have lost three quarters of their value over the past four months after a series of profit warnings, hitting an all-time low of less than 10p last month.

In recent years, it has branched out into other areas — such as commercial land, professional services and architecture — to reduce its reliance on residential home sales, which now account for less than half of group turnover.

Humberts was due to embark on an expansion and acquisition plan last year, but put plans on hold during the summer as concerns grew over the property market.

The group is now set for a strategic overhaul, which could see non-core assets and businesses offloaded as it seeks to minimise losses.

The group’s loss in the 12 months to the end of September compares with a profit of £1 million the previous year.

Michael Nower, previously the finance director at Countrywide, the property services group, was appointed interim chief executive two weeks ago after Humberts's newly appointed chairman John McLean said: “We believe that inherently Humberts is a good operating business with a respected brand and is of a scale that has significant potential.”

Humberts figures will cast more gloom over the housing market. Last month LSL Property Services, which owns 290 Your Move offices, announced the closure of 12 branches and the cutting of 315 full-time jobs.