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Foxtons, the estate agency at the centre of allegations over sharp practice in the housing market, is planning to list its shares on the London Stock Exchange in a deal that could value the agency at up to £400 million.

The plans for a share listing, which are said to be at an early stage, come at a time when property prices, particularly in London, are reaching record levels.

The chain, whose employees drive Minis adorned with the agency’s distinctive green and yellow logo, is hoping to drive overseas expansion with the proceeds of the sale.

Foxtons aims to expand its loss-making American operation — property prices have also been close to record highs in the United States.

Five years ago, Foxtons tested the American market with a £12 million investment in the New Jersey area. The initial outlay was followed by further investments in New York and Connecticut.

Although the US division is yet to move into profit, the company is expanding its market share by charging half the commission rate of competitors.

A listing of the chain, which was founded and is run by Jon Hunt, will be controversial. Three years ago, The Times revealed that Foxtons had instructed its employees to tear down the For Sale signs of rival operators. The exposé prompted rivals to consider suing the estate agency.

More recently, the firm was caught out in an undercover sting operation carried out by the BBC. The programme, Whistleblower, revealed staff forging signatures and boasting that they had misled clients over the value of properties.

In addition, the programme accused the firm’s financial services division of sharing confidential client information with another estate agency chain. Foxtons replied that the allegations were taken out of context and said that the employees filmed during the programme had since left the firm.

The programme persuaded the agency to tighten up its training procedures, but it did not prompt it to join any industry body or the ombudsman scheme, which remains voluntary.

News of a possible flotation of Foxtons comes only days after the Queen’s Speech paved the way for tighter regulation of estate agents.

Foxtons is said to be on track to make pre-tax profits of £25 million, despite a £6 million loss in the US.

Other less controversial estate agency chains have also attracted high valuations recently.

Countrywide, Britain’s biggest estate agency chain, is in discussion about a £900 million management buyout backed by the venture capital firm 3i.

Harry Hill, Countrywide’s managing director, and other members of the management are leading the deal, which is thought to have priced the business at about 530p a share compared with the 400p level that the shares traded at before the talks began.

Agencies for growth

Jon Hunt founded Foxtons in 1981 Worth an estimated £247 million, he is No 182 in the Sunday Times Rich List.

A flotation could value Foxtons — which has plans for growth in the US, where it is currently making losses — at £400 million

Foxtons employees meet and are ranked weekly; top sellers are given rewards such as champagne and dinners

Countrywide employs more than 7,000 people at its estate agency division, compared with the 1,200 employed by Foxtons

The company also offers financial and legal services and holds a 22 per cent stake in Rightmove, the property website

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