An auction house in Letchworth has closed its doors after sources say a rent increase crippled the business.

Staff at Letchworth Motor Auctions are said to have been given just three days' notice of the closure by director Simon Morgan.

Customers have found the company's website no longer exists, and the phone number is not in service.

An insider told industry magazine Car Dealer that the landlord, Letchworth Garden City Heritage Foundation, had wanted to increase the rent from £65,000 to £149,000.

Mr Morgan’s LinkedIn profile states he is now ‘taking time out’ and lists his time at Letchworth Motor Auctions as having come to an end last month, after 12 years at the helm.

A spokesperson for the heritage foundation said: "We are saddened by the demise of Letchworth Motor Auctions, and that the directors decided to close the business so abruptly, giving such short notice to their staff and creditors. 

"It is important that we work with our tenants and strive to agree mutually beneficial terms for the good of the town. However, as a charity we are under a fiduciary duty to receive best value from our investment properties.  

"We worked with the tenant for over a year to agree the new market rent and it is regrettable that we were not able to reach an agreement."