The new owner of Purplebricks has today announced a major fee cut in a bid to recapture the glory days for the firm.
At one stage, Purplebricks was the poster child for estate agency disruption, driving rapid expansion across the country and impressive growth figures. But the company posted spectacular losses in recent years, forcing the business to be sold to Strike for just £1 last week.
Low fee estate agencies, particularly Purplebricks, have come under fire in the past, not just because they are generally generally a lot cheaper than high-street estate agencies, but also because, according to some, the downward push on fees has worsened standards across the industry.
However, that has not deterred the new owner of Purplebricks re-starting the ‘disruption’ that first made it a household name, with a new nationwide fee structure.
The new pricing will apply across the entire country and removes the premium for properties in London; Purplebricks fees have hit a record low in the capital.
From today the nationwide fee will be slashed to £999. This represents a reduction of 26% on its previous pricing for properties outside of London and a reduction of 67% for properties within London and the South East.
For the pro-pack, which includes accompanied viewings, the nationwide price will be £1,699. Both packages include professional photography and floor plans, as well as a Local Property Partner, backed up by a central property support team to see all customers through the whole property purchasing journey through to sale completion.
Based on the average UK house price of £260,736 in May 2023 according to the Nationwide House Price Index and a traditional estate agents commission of 1.5%, consumers would save £2,912 using Purplebricks, or £2,212 for those choosing the pro-pack, with the value proposition is even greater with London properties, according to new CEO of Purplebricks, Sam Mitchell.
He said: “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.”
Purplebricks’ ‘failed’ model blamed for lower estate agency standards
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