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Purplebricks is a British online estate agent, which operates in the UK. Founded in 2012 by Michael Bruce, Kenny Bruce and David Shepherd,[3] it is backed by investors that include venture capital firm DN Capital[4] as well as Neil Woodford, Paul Pindar, and Errol Damelin.[5][6]

Key Information

History

[edit]

Early history

[edit]

Michael Bruce, Kenny Bruce and David Shepherd conceived their idea for an online estate agency in 2012.[7][8] Property sales in the United Kingdom had historically been handled by traditional (or "high street") estate agencies.[9] The brothers previously led one such agency, Burchell Edwards. They believed a lower-cost, digital model for residential property sales could be developed that reduced expenses associated with running a chain of physical offices.[8][10]

The name “Purplebricks” was chosen for this venture while brainstorming around a kitchen table.[11] The founders felt the colour purple symbolised "regalness", while "bricks" reflected property and technology, and “Purplebricks” would be a recognisable brand name.[11][12]

The corporate parent of Purplebricks was initially registered in April 2012 with the name New Portal Limited. In October 2012, the name was changed to New Broom Limited, signalling a desire to sweep clean the existing UK residential property market and bring about a fresh approach.[13][7] Early investors included DN Capital, the London-based technology fund founded by Steve Schlenker[14] and Nenad Marovac[15], Paul Pindar, the former CEO of Capita, Martin Bolland, Capita's then non-executive chairman, and Errol Damelin, the founder of Wonga.[16]

In April 2014, Purplebricks publicly launched and began listing homes in the United Kingdom, although initially only within parts of southern England.[9] In August, the company raised £8m of equity investment led by fund manager Neil Woodford, who acquired a 30 percent stake in the company.[17][18] By May 2015, operations expanded into other regions of England and Wales, and plans were announced for a possible stock market listing.[19] The company appointed Canaccord Genuity to oversee the potential float.[20] Expansion into Northern Ireland and Scotland followed in June and November.[21][22]

Becoming public

[edit]

In December 2015, Purplebricks formally announced its plan to launch on AIM later that month, making it the first online estate agency to debut on the stock market.[23][24] Ahead of the float, the company stated that it had 4,300 residential properties listed for sale—nearly twice the number of the next largest online agency—and intended to use raised funds to further boost its national presence, acquire more agents, and invest in the brand and technology.[25][23] The company also announced it had already sold £58 million worth of shares, primarily to three major corporate investors: Old Mutual, Artemis, and Fidelity.[26] As part of the IPO process, the corporate parent of Purplebricks, New Broom Limited, re-registered as a public limited company with the name Purplebricks Groups Limited.[16] Shares began trading on 17 December.[26] Just under a quarter of the company sold to investors, valuing the online estate agent at £240.2 million.[26]

Further growth and international expansion

[edit]

In June 2016, Purplebricks announced that it had recruited an Australian management team and planned to launch its platform in the country.[27] In August, Purplebricks launched a media campaign in Australia about the company's fixed-price property marketing, and formally launched its operations there later that month.[28][29][30] In 2017, Purplebricks’ Australian subsidiary generated a £6.1 million loss with £3.9 million spent on administration costs and £3.8 million spent on marketing and PR-related costs.[31]

Purplebricks expanded into the United States in 2017, beginning operations in Los Angeles before moving into San Diego, Sacramento, Fresno, and then New York in 2018.[32][33] The expansion was supported by more than $60 million in funds raised through a special stock offering.[34] Purplebricks' business proposition remained essentially the same for U.S. customers: the company charged a listing fee of $3,200, which sellers were required to pay regardless of whether their home sold.[34]

In August 2017, Purplebricks was featured on BBC's Watchdog following an investigation into claims of misleading customers.[35][36][37] In September 2017, consumer review website Trustpilot issued an open letter clarifying its Purplebricks review policy following allegations concerning the “validity of reviews of Purplebricks by customers”.[38][39] That same month, the company was accused of “corporate bullying” following suspension from estate agent review website allAgents.co.uk. Purplebricks threatened the consumer review website with legal action over the publication of negative reviews due to the site's lack of vetting for those leaving reviews.[40][41][42]

In July 2018, Purplebricks expanded their operations into Canada through the $38 million acquisition of DPCF, a Canadian real estate company that also positioned itself as "commission-free".[43][44] The acquisition announcement noted that DPCF would continue to be led by the existing management team.[44][45]

In October 2018, Purplebricks announced it would enter the European market through a joint venture with digital publisher Axel Springer SE. The two companies would jointly purchase a 25.9% stake in Homeday, a German online estate agent.[46] Like Purplebricks, Homeday markets itself by highlighting its lower selling fees compared to traditional agents.[47]

Forbes magazine reported in January 2020 that an email was sent from Purplebricks Canada's marketing department to all employees asking for positive reviews from friends and family regardless of whether they had had any business dealings with the company. In exchange it was reported that the employee that facilitated the most reviews would receive a paid day off.[48]

In June 2020, Purplebricks, Axel Springer, and venture capital firm Project A made further investments in Homeday to help the company expand its operations.[47][49]

International financial losses

[edit]

In August 2018, the Australian Financial Review (AFR) reported troubling management and lacklustre sales issues.[50][51][52] In February 2019, Purplebricks' share price dropped sharply after it lowered its US and Australia revenue forecasts.[53] In May 2019, Purplebricks vowed to shut down operations in Australia due to lack of profitability, after reporting an $18m interim loss for the six months to October.[54] This came days after the company's then CEO, Michael Bruce was laid off after disagreements with Paul Pindar over the failed overseas expansion.[55] The AFR reported that "increasingly challenging market conditions" and "execution errors" contributed to Purplebricks closure of Australian operations.[56]

In July 2019, new CEO Vic Darvey announced that Purplebricks would be shutting down operations in the United States, announcing that operating costs had risen to almost £52.3 million, said that it would focus its attention on Britain and Canada.[55]

In 2020, the company reported revenue of £111.1 million and an operating income of -£9.4 million.[57][58][59]

On July 15, 2020 Desjardins Group announced that they were purchasing the Canadian business of Purplebricks Group PLC for US$60.5 million.[60] It was reported that in the first year of operation, Purplebricks Canada ran an operating loss of US$4.8m. According to BNN Bloomberg at the time of the acquisition, Purplebricks Canada and DuProprio had "more than 500 employees in Quebec, Ontario, Manitoba and Alberta".[61] Desjardins was permitted to use the Purplebricks brand and logos until December 2020.[62]

In August 2021, Purplebricks announced its strategic focus was now "fully on the UK", where it planned to accelerate its model, extend its market share, and continue to grow revenue.[63][64]

In December 2021, Purplebricks delayed publication of its results and warned shareholders that it could be forced to pay up to £9 million in compensation to tenants of its landlords. It said that during an internal review it discovered a regulatory “process issue in how it has been communicating with tenants on behalf of its landlords in relation to deposit registrations”.[65]

Sold for £1.00

[edit]

Strike, the Charles Dunstone-backed competitor, acquired Purplebricks, for a nominal amount of £1, posing a significant risk of redundancy for its workforce of over 750 employees. Purplebricks, which experienced a peak valuation of over £1.3 billion, underwent a change in ownership in 2023.[66]

Controversy

In July 2025, an BBC panorama article and show titled “Undercover Estate Agent” mentioned purplebricks and how it was making you overpay for their affiliate services- like mortgages. It also revealed some secret footage that showed how they’d get more pay if you get them to pay for their overpriced services.

Business model

[edit]

Purplebricks is a technology-led[67] estate agency that provides a hybrid service, as it combines the use of an online platform and local property agents.[68][69] Vendors and landlords can manage their property let or sale using the online platform and app.[69][70] The local property agents assist with valuations, listings, and other ancillary services.[68][69][70] The company does not maintain a branch network of brick-and-mortar estate agencies, which reduces fixed costs associated with rent, energy usage, and other operational expenses.[7] In part due to these savings, Purplebricks charges customers lower fixed fees.[7][71]

Purplebricks charges a fixed upfront fee for its services that sellers pay to be listed, rather than a percentage of the sale price once the property sells.[69][72][7] This fee includes consultation services from a local agent, photography of the property, listings on property portals like Rightmove and Zoopla, and management of the sales process.[69] Payment may be made when the property is listed or after a ten month deferral.[69] This approach is different from the commission-based structures of traditional estate agencies, in which agents are paid their fee only if the property sells.[72]

Local agents are referred to as “local property experts” and work remotely in their local area.[72][7] Agents visit the seller’s home directly to discuss the sale and value the property—and, once instructed, to provide services, including creating a floorplan of the property, taking pictures, and providing assistance with other aspects of online marketing.[72][7] For an additional fee, agents can lead viewings of the property.[7] They may also assist with negotiations when selling.[72][7]

Brand and marketing

[edit]

Purplebricks' commission-free, hybrid agency business model was intended to disrupt the UK residential property market.[7] Marketing has been a central element of the company's business strategy.[73] In 2016, Purplebricks began using the tagline "commisery", meaning the misery home sellers feel about paying commission, to distinguish itself from traditional real estate agencies.[74] A full advertising campaign about the concept followed the next year, and ran extensively in the UK, US, and Australia.[75][76] The campaign won an Effectiveness Award from the Institute of Practitioners in Advertising in 2018 for demonstrating proof on payback on marketing communications,[76][77] as the campaign contributed to a 218 percent growth in revenue.[78]

In 2019, Purplebricks was added to the Superbrands list, which tracks consumer perception of brand and marketing activity.[79][80] Purplebricks' presence on the list was seen as an indication that the company had established itself as a household name.[79][81] In 2020, Purplebricks claimed to have achieved 98 percent brand awareness within the UK.[82]

In 2021, Purplebricks arranged a product placement on the British soap opera series Coronation Street.[83][84] The company was featured as the estate agent that would be selling the show's fictional Rovers Return Inn.[83][84] The appearance of the Purplebricks sign above the pub marked the first time a firm had integrated a product into one of the show's storylines.[83][84]

In 2024, ITV agreed to support Strike/Purplebricks with £1.5 million in convertible loan notes.[85] However, only a few months later, the BBC heavily criticised Purplebricks following numerous complaints from unsatisfied clients whose homes failed to sell.[86][87] These clients reported having to pay for a purportedly free service that did not succeed in finding buyers.

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Purplebricks

View on Grokipedia
from Grokipedia
Purplebricks is a British hybrid online estate agency that provides fixed-fee services for selling, buying, and letting residential properties across the . Founded in 2012 by brothers Michael Bruce and Kenny Bruce, along with David Shepherd, the company pioneered a digital-first model combining tools with support from local property experts to disrupt the traditional high-street agency sector. Launched operationally in , Purplebricks quickly expanded by offering upfront fixed fees starting at £599 (later adjusted to £999 including VAT), significantly lower than the typical 1-3% commission charged by conventional agents, appealing to cost-conscious homeowners. The platform enables users to manage listings, viewings, and offers via a , while professional , floorplans, and are included in the package; as of 2025, it reports over 328,000 completed home sales valued at more than £73 billion. The company went public on the London Stock Exchange's (AIM) in December 2015 with an initial valuation of £240 million, surging to a peak market cap of over £1 billion by 2017 amid rapid growth and £5.8 billion in annual property sales. However, it encountered significant challenges, including regulatory scrutiny from the Advertising Standards Authority in 2017 over success rate claims, operational issues highlighted in investigations, and a 2025 investigation into alleged overvaluing and sales tactics, as well as unsuccessful international expansions into and the , from which it withdrew in 2019. By 2021, amid mounting losses and a share price drop to 33p, Purplebricks faced erosion to around 4.7% in the UK and changes, with founder Michael Bruce stepping down as CEO in 2019. In June 2023, the struggling firm was acquired by rival digital agency Strike for a nominal £1, initially transitioning to a no-fee model for sellers while integrating into Strike's operations, with the entity restructured as Bricks Newco Limited (which reintroduced paid fees in October 2025). As of November 2025, Purplebricks continues to operate under Strike's ownership, headquartered in , but reports substantial financial pressures, with pre-tax losses escalating to £37.8 million for the year ended March 2024—nearly double the prior year's figure—and ongoing reliance on shareholder funding amid doubts about its long-term viability in a competitive market. Despite these hurdles, it maintains a strong online presence, boasting over 113,000 five-star customer reviews and focusing on technological innovations to streamline property transactions.

History

Founding and launch

Purplebricks was founded in 2012 by brothers Michael Bruce and Kenny Bruce, along with David Shepherd, with the aim of creating a technology-driven online estate agency to the traditional market in the UK. The company was established as a hybrid model that combined digital tools with local expertise, seeking to eliminate the high commissions typically charged by high-street agents. The firm received early financial backing from prominent investors, including a significant from Neil Woodford's fund, which led a £8 million equity round in August 2014 and acquired a substantial stake in the company. This funding supported the development of Purplebricks' proprietary platform and initial operations. Purplebricks officially launched to the public in April 2014, initially operating in parts of , such as the south coast region. From the outset, it introduced a fixed-fee pricing model starting at around £999, allowing sellers to list properties without the percentage-based commissions of conventional agents, thereby aiming to save customers significant costs. The service focused on a fully digital platform for property valuations, professional photography, listings on major portals like , and sales progression, all managed without physical high-street branches to reduce overheads.

Public listing and domestic growth

Purplebricks completed its (IPO) on the (AIM) of the London Stock Exchange on December 17, 2015, marking the first listing for an online in the UK. The IPO raised £58.1 million in total, with £25 million allocated to the company for expansion and £33.1 million to existing shareholders, achieving a post-IPO valuation of £240.2 million at a share price of 100p. Following the IPO, Purplebricks experienced rapid domestic growth in its operations, driven by expanded national coverage and increased customer adoption. Instructions surged, with monthly averages in the second half of 2016 reaching 2,033, a 252% increase from 578 in the prior year's second half, and 2016 recording 2,827 instructions compared to 972 in 2015. Revenue from activities grew 448% to £18.6 million for the ended 30, 2016, reflecting an average revenue per instruction of £901, up from £703 the previous year. Key milestones included annualised instructions reaching approximately 34,000 by mid-2016, positioning Purplebricks as the third-largest in the UK by volume. To support this expansion, the company significantly scaled its network of Local Property Experts, increasing from 79 to 205—a 159% rise—providing on-the-ground support for property valuations and viewings across the country. These experts, often self-employed and licensed under the Purplebricks model, enhanced service delivery without traditional high-street overheads.

International expansion and retreats

Purplebricks began its international expansion in with a launch in , where it established operations through a locally recruited team to offer fixed-fee real estate services in a market estimated at £3.3 billion. The company aimed to replicate its hybrid model, targeting cost-conscious homeowners with a flat fee structure amid high commission rates in the Australian property sector. In 2017, Purplebricks entered the , initially launching in in September before expanding to other major cities including New York and . The rollout involved substantial , with the company committing approximately $50 million over the first two years to build and in a fragmented, agent-driven market. This expansion was part of a broader to capture share in high-value urban areas, leveraging digital tools and local agents. The company's North American push continued in 2018 with the acquisition of DuProprio/ComFree, Canada's leading fixed-fee network, for £29.3 million (approximately $38 million). This move provided immediate market access and an established customer base of over 15,000 annual listings, allowing Purplebricks to rebrand the operations as and integrate its technology platform. Later that year, Purplebricks gained a European foothold by acquiring a 12.9% stake in German digital agency Homeday for €12.7 million through a with , aiming to tap into Germany's growing online property sector. By 2019, challenges in international markets prompted retreats. Purplebricks closed its Australian operations in May after less than three years, citing low customer uptake and failure to gain meaningful market traction despite heavy spend. In July 2019, the company announced its withdrawal from the , where it had incurred operating losses exceeding £40 million since launch, attributing the exit to intense and slower-than-expected of its model. These pullbacks contributed to broader financial pressures, with international ventures generating significant losses. In 2020, Purplebricks sold its Canadian business to for CAN$60.5 million (approximately US$45 million at the time), retaining a licensing agreement for the brand but effectively exiting direct operations to focus resources on the . This transaction provided a partial recovery on the initial while allowing the company to streamline amid ongoing global challenges.

Financial challenges leading to sale

Purplebricks' international operations incurred significant cumulative losses, totaling over £100 million by 2020 when for operating deficits and impairment charges across its expansions into the , , and . In the fiscal year ending April 2018, operating losses from the and alone reached £28.9 million, driven by heavy marketing and setup costs in nascent markets. These figures escalated in 2019, with operating losses amounting to £56.1 million across all three international segments, alongside £93.9 million in impairments on investments in and Australian subsidiaries, reflecting underperformance and the subsequent decision to exit those markets. By 2020, additional losses from discontinued and Australian operations added £7.7 million, while the Canadian business contributed a further £2.7 million operating loss before its disposal later that year. Domestically, Purplebricks faced mounting pressures after amid challenging market conditions, including a in the UK housing sector following the stamp duty holiday's end and rising interest rates. Instruction volumes, a key driver of , declined sharply, falling 23% in the year to April 2020 and dropping another 31% to 40,141 instructions in as buyer confidence waned. followed suit, decreasing from £90.9 million in 2021—buoyed by pandemic-era demand—to £79.6 million in , exacerbating overall group losses. These trends were compounded by operational inefficiencies and competitive pressures from traditional agents, leading to an adjusted core loss of £8.8 million for fiscal 2022. In response to these financial strains, Purplebricks implemented aggressive cost-cutting measures, including staff reductions to streamline operations and reduce overheads. In late , the company announced layoffs affecting more than 10% of its approximately 800 employees, aiming to align costs with the subdued . Despite these efforts, persistent losses and a cash position that dwindled to around £43 million by April prompted a strategic review, culminating in negotiations for a sale. The mounting challenges led to the company's agreement to sell its UK business to rival online agent Strike for a nominal £1 in May 2023, with Purplebricks retaining approximately £2 million in net cash proceeds after covering liabilities of about £33 million. The transaction, which included the assumption of certain debts by Strike, also involved the delisting of Purplebricks' shares from the AIM market on June 16, 2023, marking the end of its public listing and exposing around 750 jobs to potential risks as Strike pursued further integration and efficiencies.

Acquisition by Strike and subsequent developments

In June 2023, Purplebricks was acquired by rival online Strike for a nominal sum of £1, with the transaction backed by Freston Ventures, the co-founded by telecoms entrepreneur Sir . The deal, which transferred Purplebricks' business, assets, and liabilities to Strike, was overwhelmingly approved by shareholders on June 2, 2023, and completed shortly thereafter on June 5. This acquisition followed a period of financial distress for Purplebricks, marking a strategic consolidation in the UK's online property sector. Post-acquisition, Strike implemented significant cost-cutting measures, including substantial staff reductions and office closures, which placed around 750 jobs at risk as the company sought to streamline operations. These changes, announced as part of the integration process, involved cutting more than 100 positions in the initial months and closing several regional offices to align with Strike's leaner model. In December 2023, Strike fully integrated Purplebricks by rebranding its operations under the Purplebricks name and launching a fee-free selling model, aiming to leverage the established brand while disrupting traditional estate agency fees through add-on services. To support this pivot, ITV provided £1.5 million in convertible loan notes in May 2024 via its Media for Equity program, in exchange for advertising commitments on its platforms. By October 2025, amid ongoing operational adjustments, Purplebricks quietly discontinued the fee-free model, introducing a revised pricing structure that eliminated the no-fee option entirely. This shift reflected evolving market dynamics and internal restructuring efforts under Strike's ownership.

Business model

Operational structure

Purplebricks operates as a hybrid estate agent, combining digital tools with support from local property experts to facilitate residential property sales across the without maintaining traditional high-street offices. The core platform enables sellers to list properties online, including professional and exposure on major portals like and Zoopla. Virtual valuations are provided for free to initiate the process, allowing homeowners to assess their property's remotely through an online booking system. tools, accessible via the Purplebricks app, empower sellers to manage listings, track progress, and handle administrative tasks independently. Local property experts, who are fully employed by the company since 2021, play a crucial role in the operational model by conducting physical viewings, offering negotiation guidance, and providing market advice tailored to specific regions. These agents, trained by the National Association of Estate Agents, cover nationwide territories and focus on personalized support without the overhead of physical branches, enabling a cost-efficient service delivery. This structure supports over 300,000 completed sales, demonstrating the model's scalability for residential transactions. Technology integration forms the backbone of Purplebricks' operations, with an app-based brokerage system that streamlines the entire selling process for residential properties. The platform facilitates real-time communication between sellers, agents, and buyers, incorporating features like digital document signing and progress dashboards to minimize delays. This digital-first approach reduces reliance on manual processes, enhancing efficiency in a competitive market. Following the 2023 acquisition by Strike, Purplebricks adapted its operations by adopting elements of Strike's model while retaining its established technology stack, including audits to integrate digital tools for improved compliance and . This blending has stabilized the hybrid framework under the Purplebricks brand, focusing on seamless online-local coordination without disrupting core service delivery.

Pricing strategy

Purplebricks initially disrupted the traditional estate agency market by introducing a fixed upfront model, charging sellers a flat rate regardless of the property's sale price. In the UK, this began at £599 for basic services, evolving to £999 by 2019, with premiums up to £1,499 in high-demand areas like . In the , prior to its market exit in 2019, the company offered a similar flat of $3,200 for listing and basic support services. Following its acquisition by Strike in 2023, Purplebricks adopted a commission-free model, aligning with Strike's fee-free approach to attract volume sales through optional add-ons for revenue. This shift, implemented in late 2023, eliminated upfront listing fees entirely for core services like valuations and portal placements. However, in 2024, the company reverted to a fixed-fee structure, introducing tiered packages based on payment options starting from a base flat rate without percentage-based commissions, citing the need for sustainable pricing amid market conditions. The tiered packages include Pay Upfront for £799, Flexi-Pay for £1,149 in or £1,499 in , and Pay on Completion for £1,199 in or £2,199 in (all inclusive of VAT, as of November 2025). To supplement core fees, Purplebricks offers optional add-ons for enhanced visibility and support, such as Premium listings for £125, hosted viewings for £499, drone photography for £199, and elevated photography for £99. services are available through partnered providers, often bundled as referrals without direct fees from Purplebricks but with separate costs to sellers. This fixed-fee approach contrasts sharply with traditional estate agents, who typically charge commissions of 1% to 3.5% of the sale price, potentially amounting to thousands on higher-value , whereas Purplebricks' model caps costs upfront to appeal to cost-conscious sellers.

Marketing and branding

Purplebricks' branding is centered on its distinctive , which symbolizes , trust, and affordability in the real estate sector, drawing from associations of with luxury and to position the company as a premium yet accessible alternative to traditional agents. The brand's visual identity features the company name in a bold, all-caps font within an open square, emphasizing and , a updated in to enhance recognizability. This iconic motif has been consistent since the company's founding, reinforcing its disruptive image in the property market. A key branding element is the emphasis on a fixed-fee model, often promoted through phrases like "sell your home for a fixed " to highlight cost savings over percentage-based commissions, starting from £999 inclusive of VAT. The company has invested heavily in high-profile advertising campaigns to build , particularly through television ads that critique traditional practices. Campaigns like the 2017 "Commisery" series depicted humorous scenarios of high-street agent pitfalls, such as unexpected fees and poor service, to contrast with Purplebricks' transparent model. In 2021, Purplebricks launched its largest ad push in five years, featuring comedian as the brand ambassador in TV spots showing rapid property sales across the , aiming to underscore efficiency and market leadership. Additionally, a 2020 partnership with incorporated interviews with Olympic athletes like and to promote the brand during the Games, boosting ad awareness rankings. These efforts, often aired during peak viewing times, helped establish Purplebricks as the UK's most recognized online by sales volume. Digital marketing forms a core pillar of Purplebricks' , leveraging platforms and (SEO) for and . The company maintains active presences on platforms like , , and , sharing property tips, client testimonials, and promotional content to drive traffic to its site, with initiatives like reviews integrated to build credibility. For SEO, Purplebricks produces localized property guides and maintains a robust search tool, resulting in over 45,000 universal search appearances that enhance visibility for potential sellers. This digital-first approach aligns with its model, generating thousands of daily leads through app-based valuations and direct inquiries. Following its 2023 acquisition by Strike for £1, Purplebricks underwent a refresh in 2024 led by agency Regular Practice, integrating elements of Strike's operations while retaining the Purplebricks name and core purple identity to maintain continuity. The rebrand introduced a modular system and updated visuals to signal renewal, phasing out the Strike entirely in favor of unifying under Purplebricks for mortgages and sales services. This evolution preserved the company's established equity while adapting to the acquirer's tech-led ethos, with the new slogan "A fairer way to sell your house" reinforcing affordability post-relaunch.

Financial performance

Pre-acquisition finances

Purplebricks experienced significant revenue growth in its early years following its founding in 2012 and public listing in 2015. For the financial year ended 30 April 2016 (FY2016), the company reported revenue of £18.6 million, primarily driven by its operations as it scaled its hybrid estate agency model. This figure more than doubled to £46.7 million in FY2017, reflecting expanded national coverage and increased instruction take-up. Revenue continued to accelerate, reaching £93.7 million in FY2018 and peaking at £136.5 million in FY2019, bolstered by international expansion into , the , and , alongside strong performance with average revenue per instruction rising to £1,243. However, FY2020 marked a , with group from continuing operations declining 2.4% to £111.1 million amid the onset of the , which disrupted property viewings and market activity in the final quarter. The pandemic's effects persisted into subsequent years, contributing to volatile revenues: a partial recovery to £90.9 million in FY2021 as UK instructions rose 14% to 58,043 amid pent-up demand post-lockdown, followed by a 23% drop to £70.0 million in FY2022 due to sustained market uncertainty and reduced transaction volumes. Key operational metrics underscored this trajectory, with UK instruction volumes peaking at 69,892 in FY2019 before falling 23% to 53,680 in FY2020 under COVID-19 pressures. Despite revenue expansion, profitability remained elusive, with an operating loss of £9.4 million in FY2020 for continuing operations. International ventures proved particularly costly, accumulating losses exceeding £100 million by FY2019 as the company retreated from the US and Australia, incurring £52.9 million in operating losses that year alone from discontinued segments. These financial strains, compounded by the pandemic's impact on domestic volumes, highlighted ongoing challenges in achieving sustainable profitability pre-acquisition.

Post-acquisition results

Following its acquisition by Strike in June 2023, Purplebricks reported pre-tax losses of £37.8 million for the year ended 31 March 2024, more than doubling from £19.4 million the previous year. Revenue for the period rose to £31.1 million, up from £13.2 million in the prior year. The company attributed the widened losses primarily to increases and challenging market conditions, including a slowdown in the sector and adjustments to products by lenders. Purplebricks maintained ongoing dependence on external funding to sustain operations, with shareholder support from Freston Ventures, Strike's primary backer, playing a key role. In 2024, the company secured a £1.5 million from ITV as part of a media-for-equity . Post-year-end, an additional £40.2 million in funding was received from shareholders and investors to cover operational needs. The accounts filed in September 2025 raised concerns over risks, citing net liabilities of £56.5 million and ongoing pre-tax losses as factors creating material uncertainty about the company's ability to continue as a . Directors' forecasts projected continued trading through March 2025, but emphasized heavy reliance on further financial support from investors, with no repayment obligations on loans until at least September 2026. As of November 2025, Purplebricks continues to operate under Strike's ownership.

Controversies

Sales practices allegations

In July 2025, a undercover investigation titled "Undercover Estate Agent" exposed allegations of unethical sales practices at Purplebricks, focusing on tactics that prioritized commissions over customer interests. The report featured undercover filming and whistleblower testimony revealing how agents overvalued properties to attract sellers, only to later pressure them into price reductions to facilitate sales. For instance, whistleblowers described properties being "massively" overvalued during initial valuations to secure instructions, followed by incentives for staff to push for reductions, such as targets for 18 price drops per month earning £900 in commission. The investigation also highlighted pressure on sellers to purchase add-on services, including mortgages and , with agents allegedly steering clients toward expensive in-house options—such as conveyancing quotes of £2,820 compared to market rates around £1,000—to boost revenue. Similar dubious tactics were claimed at competitors like , including conditional selling of services and rewarding price adjustments, though Purplebricks was singled out for its fixed-fee model still enabling such behaviors. A whistleblower who worked at Purplebricks from June to October 2024 recorded online team meetings where leaders encouraged "planting seeds" for price cuts if viewings were low after four weeks. Purplebricks responded by denying any systematic overvaluation, asserting that as a fixed-fee agent, it lacks the commission incentives common in traditional agencies, and independent data showed its customers reduced asking prices less than the market average. The company confirmed that price reduction targets for staff commissions had been discontinued and emphasized significant improvements in and since its 2023 ownership change, noting that the featured no longer worked there. The report severely damaged Purplebricks' reputation, portraying it as part of a broader industry issue with trust and transparency, leading to public backlash and calls for independent audits and staff retraining. It also prompted regulatory scrutiny, with the Council for Licensed Conveyancers announcing a thematic review of referral fee arrangements in early 2026 to examine transparency and compliance in add-on service sales.

Regulatory and reporting issues

In 2025, Purplebricks faced delays in submitting its mandatory report, missing the April 4 deadline set by regulations, which the company attributed to administrative challenges stemming from its acquisition by Strike in 2023. The (EHRC) issued a warning notice to Purplebricks and nine other organizations, including Strike Ltd, threatening enforcement actions such as investigations or unlimited fines if the data was not promptly provided. The company's annual accounts for the year ending March 31, 2024, were filed significantly late, with approval occurring on September 24, 2025—over 18 months after the period's end—exposing ongoing risks including net liabilities of £56.5 million and a pre-tax loss of £37.3 million. These disclosures highlighted the firm's dependence on £40.2 million in additional shareholder funding since the year-end and £29.74 million in post-year-end loans, with directors noting a "significant doubt" over its ability to continue as a amid market pressures. Investor-related regulatory scrutiny indirectly affected Purplebricks through its early backer, , whose Woodford Investment Management faced a provisional £46 million fine from the (FCA) in 2025 for misconduct in the Woodford Equity Income Fund, which had heavily invested in Purplebricks during its initial growth phase. Woodford and his firm appealed the fine and a proposed ban on his senior management roles at the Upper Tribunal, arguing against the FCA's findings, though this did not impose direct liability on Purplebricks itself. These reporting delays and associated disclosures have raised broader concerns about transparency under Strike's ownership, particularly as the parent company emphasized cost reductions and continued investor support through at least 2026 to mitigate ongoing financial vulnerabilities.

References

  1. https://www.purplebricks.co.uk/
  2. https://www.irishtimes.com/business/retail-and-services/dreams-of-online-estate-agent-purplebricks-turn-to-rubble-1.3884162
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