Property firms, including estate agents, saw their share prices tumble yesterday in the wake of Russia’s invasion of Ukraine.
The UK government is imposing a raft of sanctions against Russia that will almost certainly have major ramifications for the UK property industry.
Foxtons, LSL Property Services, Rightmove, OnTheMarket, were among a number of property firms to see share prices fall on Thursday.
Purplebricks’ share price also continues to decline, having hit its lowest-ever level, dropping to just 17.75p yesterday.
Shares in the online estate agent have plummeted since its all-time high in 2017 of just under 500p, with recent regulatory failings, contributing to that decline.
Purplebricks, who are currently facing a class action lawsuit from over 100 former agents who believe they were entitled to the benefits given to permanent employees, despite being classed as self-employed, was recently forced to delay the publication of its first half results to provide for any potential future claims which could arise under the Housing Act in relation to this regulatory process issue.
The move followed speculation that the online estate agency could potentially face a bill of up to £30m after it allegedly put thousands of landlords at risk of being because it failed to follow basic tenancy law.
EYE revealed in November that Purplebricks had failed to properly serve legally required documents to tenants explaining their deposits have been put into a national protection scheme.
Purplebricks, which recently said the six-month period to October 31 had been “challenging”, is currently being investigated by Propertymark for potential tenancy law breaches.
A statement from David Oliver, head of Propertymark Compliance, said: “It is important that any allegation made against an agent be substantiated with viable evidence.
“As a representative body we take any allegations against our members incredibly seriously and we will be investigating the claims of failure to properly register tenancy deposits by Purplebricks.
“Legal procedures exist to protect both agents and their clients. Performing them properly not only protects agencies but is paramount for consumer confidence, providing transparency between businesses and their customers.
“Agents fight against a stigma and ensuring processes are in keeping with legal and professional standards is a key part in changing our reputation.”
More Ammo for Smithy to use…
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“Shares in the online estate agent have plummeted since its all-time high in 2017 of just under 500p…”
Erm – the share price “all-time high” was actually 525p, on 8 August 2017 (credit: Yahoo finance).
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Crying out to be taken private. Axel Springer get your cheque book out (or lose your investment….)
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The goods are far too spoiled – no use whatsoever to to man nor beast.
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“The UK government is imposing a raft of sanctions against Russia that will almost certainly have major ramifications for the UK property industry.”
You have far more confidence than me that *THIS* UK government will do anything sanction wise to stem the flow of Russian money into London and the UK.
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This is very poor reporting. The war between Russia and Ukraine has nothing to do with Purplebricks and their current woes.
Agents must take their own stand as to whether they sell to Russian companies or people.
You have made made no correlation to why shares have dropped with various companies and why the UK property market should suffer. You are clearly spreading misinformation and after a clearly very serious 24 hours you seem intent on trying to put fear that companies will fail because of the Ukraine/Russia crisis.
Better reporting with facts and clarity is what you need to consider.
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“Purplebricks’ share price also continues to decline, having hit its lowest-ever level, dropping to just 17.75p yesterday.”
That was the ‘close’ price – earlier in the day the share price actually dropped to 17p.
As has been already stated above, ‘bricks share slump started way before Putin ordered the troops into the Ukraine.
And they will continue when the current Eastern European situation eases.
‘Bricks is a busted flush; what could have been a feast for Kings too spoiled to be use to man nor beast.
And the rest of the industry will have to pick up the pieces and shoulder the anger of the public when all is over and done – just like the fallout from emoov and the other failed “disrupters”.
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Given your title, I think you’re a cheesed off, ex TO!
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Or just a pen pushing jobsworth keyboard warrior with far too much time on his hands.
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