Jackson-Stops and Staff, based on Angel Hill, placed an advert for Suzanne Richards and Sarah Dobinson's home on www.rightmove.co.uk under the reference lesbians.

The couple say this meant their relationship became public knowledge without their consent.

"We were both shaking with disbelief and in tears," said the couple in a statement.

"We felt so violated. We had entrusted these people, welcomed them into the most intimate parts of our home and this was how they could treat us.

"The repercussions of such actions could have been catastrophic. Publicly linking our home address with our sexuality could have ruined our lives."

The couple pursued a discrimination claim against the firm, which has now been settled with Jackson-Stops and Staff also agreeing to pay for its staff to undergo equality and diversity training.

Ben Summerskill, chief executive of gay rights group Stonewall, said: "The treatment of Ms Dobinson and Ms Richards was wholly unacceptable and I am pleased that both women have been compensated for what must have been a very distressing experience.

"It is a reminder to companies that discrimination on the grounds of sexuality will not be tolerated by the gay community and it is encouraging that Jackson-Stops and Staff has taken positive steps to ensure this type of incident is not repeated."

Oliver Peacock, from Jackson-Stops and Staff, said: "We very much regret the incident, which occurred as a result of the actions of an individual member of staff.

"As an employer and a leading provider of estate agency services we take equality issues extremely seriously.

"As soon as the matter was brought to our attention, we took appropriate action to remove the comment. The individual concerned was subject to full disciplinary proceedings.

"We have apologised to Ms Richards and Ms Dobinson and reached a settlement with them fully compensating them."

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