Purplebricks, a once-dominant disruptor in the estate agency sector, announced today a considerable reduction in their fees under the new ownership. This bold move is aimed at restoring the company’s former glory and reputation in the industry.
Despite the firm’s initial rapid expansion and promising growth, Purplebricks suffered major losses in the recent years, which led to its sale to Strike for a symbolic £1 last week. It was criticised for its low-fee model which, according to critics, pushed the industry standards down along with the prices.
Undeterred by the past turbulence, the new owners are keen to bring back the disruptive streak that earned Purplebricks its household name. They have introduced a fresh nationwide fee structure that eliminates the previously charged premium for properties in London, resulting in record low fees in the capital.
Effective today, the nationwide fee will be cut down to £999, marking a 26% decrease from its earlier pricing for properties outside London and a 67% drop for those within London and the South East. The pro-pack, inclusive of accompanied viewings, will be priced at £1,699. Both these packages come with professional photography and floor plans, plus a dedicated Local Property Partner supported by a central team, assisting customers throughout the property buying process until the sale completion.
The new pricing strategy offers substantial savings for consumers. Given the average UK house price standing at £260,736 in May 2023, as per the Nationwide House Price Index, and a traditional estate agent’s commission of 1.5%, consumers could save £2,912 using Purplebricks, or £2,212 if opting for the pro-pack. The value proposition is even more significant for London properties, states Purplebricks’ new CEO, Sam Mitchell.
“We are back in the game with a new value offering, returning to our roots as a major disrupting force in the industry. With the support of our new owners, we are going on the offensive again with the launch of the first element in our new strategy to recapture market share, and provide consumers with a much needed value offering in these difficult economic times,” Mitchell stated, outlining the firm’s ambitious vision for the future.
