BUZZ-UK estate agents: Citi picks through sector

** Countrywide (Other OTC: CTYWY - news) outperforms a weak FTSE 250, with Foxtons among top fallers on index as Citi starts coverage on pair as "buy" & "sell" respectively in a note entitled "Regional UK On The Up; London Less Compelling"

** Countrywide is broker's key sector pick; Citi notes strong end-market dynamics & that co continues to evolve organically as well as stands to benefit from any potential M&A activity in sector

** LSL Property Services (LSE: LSL.L - news) comes a close second for the broker; initiates stock with "buy" rating

** Foxtons largely focused on London where Citi has concerns over end market dynamics given affordability issues which may curtail volumes

** Broker also flags Foxtons may have limited scope for margin expansion & given management's organic growth plans unlikely to participate in any industry consolidation

** Citi notes Foxtons trades at premium to peers (19x 1yr fwd PE vs Countrywide on 14.1x & LSL on 12.4x, TR data shows)

** Countrywide up 0.9%, Foxtons 4.4% lower (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)