Pagan Osborne is to lay off 13 staff across its six offices, two of which are in Cupar and one in St Andrews.

Through their public relations company, Edinburgh-based Indigo, the company said that nine of the staff are from the property team and the other four in support roles, but declined to comment on which branches were affected.

Founded over 250 years ago, Pagan Osborne opened Scotland's first-ever dedicated property centre in Cupar in 1976 and has long-established offices in St Andrews and Anstruther.

In 2004, the firm expanded into Edinburgh with the acquisition of the client, agriculture and property divisions of the law firm Ketchen and Stevens, and the following year they were joined by the commercial property firm Bell & Scott.

The firm has nine partners and employs around 120 people.

In a statement, chief executive Alistair Morris said: "Like most businesses, Pagan Osborne is not immune to the current economic conditions and reluctantly we are reviewing staffing requirements, principally within property services.

"A consultation process is underway and we hope to ensure that any impact is kept to the very minimum."

Pagan Osborne is the second well-known Cupar law practice to announce cuts in its estate agency staff as a result of the slump in the housing market.

This summer, Murray Donald Drummond Cook closed its Crossgate office, with the loss of three jobs.

It was also announced this week that Headon Developments, the St Andrews based builder and property developer, is to shed 14 jobs.

Managing director Joe Headon said: "The current market conditions have impacted greatly on new home sales and in common with every other builder we have reviewed our future building programme.

"Clearly, it does not make sense to continue building at volume when there is so much uncertainty in the economy.

However, Mr Headon insisted that the company remain committed to plans to build 1200 new houses to the north of Cupar.

It is one of four construction companies who make up Cupar North Partnership, which issued a joint statement saying: "Cupar North is a long term strategic project, satisfying the expected need over the next 20 years for new houses in Cupar.

"The four firms continue to be solidly behind the concept of Cupar North and await the decision of the Scottish Government on the Fife Structure Plan."