Analysts change their tune on Purplebricks amid hints of different pricing model

Purplebricks has been upgraded from ‘sell’ to ‘neutral’ by analysts at UBS.

In a guidance note to investors, the bank said that it sees Purplebricks growing its market share in the UK from 5.8% to 7.5% by the 2024 financial year.

While this falls short of the company’s target of 10%, UBS hints that Purplebricks could change its pricing model.

UBS says: “Key to reaching guidance is a rebound in the housing market or a change in the pricing model which brings in additional instructions through the reduction of the upfront commitment.”

UBS has also upped its guidance for Purplebricks’ share price from 100p to 110p.

It said that a possible upside for the shares would be for Purplebricks to have “strategic value in the UK” as the dominant hybrid estate agent, as well as achieving new targets in the UK and Canada.

UBS also said that Purplebricks might exit from the US via a sale rather than a closure.

The analysts said they had more confidence in the new management at Purplebricks who they described as open to changing the pricing and agent remuneration model, along with improving other features such as the customer experience and agent productivity.

The Bruce brothers, founders of Purplebricks, have both left the company in recent weeks.

Yesterday, Purplebricks shares barely moved, closing at about 111p.


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  1. Hillofwad71

    Well now that Michael Bruce is living the California dream  he might step up to the plate to “buy” the USA  operation for  nickels and  dimes .

    Suspect that he would want the self-propelling Canadian operation  thrown into the mix as  a sweetner



    Can’t understand why  they  haven’t wrapped this up unless there is a buyer?


    They still have 79 agents servicing just 628 properties .It doesnt make any sense? You would have thought it would be cheaper to farm the properties out to local agents and pay them a fee ?


    Maybe somebody is preparing a bid  for the operation?

    UK  instructions down from 2018  No indication that they are  doing anything novel to increase revenue


    1. cyber_truth

      The PB model is dead and Vic Darvey is a lost soul. Data and tech is his answer to all. He needs new sound bites.
      In the US, there is nothing to sell. Everyone already exited to other estate agencies. Bruce brothers hurt a lot of hardworking people and should be investigated for their share sales activity. Michael’s home is on the market for sale in California and Miami. He used investors money to entertain his friends and family while living stateside with flights, accommodations, Vegas trips, and more. They would hide expenses in the US to accommodate his flamboyant insecure lifestyle. Little brother Kenny would run around and was all noise and emotion. Check out There are some serious legal allegations agains the Bruce brothers and the US will nto sit back.  

  2. agent37

    Ah we went a few days without a PB story I got worried they didn’t exist

  3. DoSomeWork

    Exciting times ahead at PB. Moving in right direction now with positive moves being made. 10% here we come

    1. Bless You

      The second they become no sale no fee they are dead.

      People who choose bricks have brexit logic.


      They know it was a stupid idea but can’t be seen  to have got it wrong.

      1. DoSomeWork

        and yet the majority of the uk choose Brexit.

        1. AgencyInsider

          No,  DoSomeWork, the majority of the UK do not necessarily ‘choose’ Brexit. They ‘chose’ it three years ago but knowing now what they didn’t know then, they just might NOT ‘choose’ Brexit any more.

          1. Property Pundit

            knowing now what they didn’t know then, they just might ‘choose’ Brexit by a much wider margin.’


            There, fixed it for you.

            1. AgencyInsider

              Might have fixed it for others Property Pundit. But not for me. Thanks anyway.

            2. AgentV

              It’s not Brexit anymore though is it?

              Its leaving with ‘no-deal’ which was completely the opposite to what was promoted by the the ‘vote leave’ campaign in the run up to the referendum. We were going to be able to keep all the benefits we already had, sign the easiest deal in history and all walk off into the ‘sunlit uplands’ as wealthier citizens.

              Since no-deal was never promoted as a viable solution, no one can claim there was a mandate for it. Millions of those who voted for leave would never have voted to do so with no-deal, that will make all of us worse off and probably tip the UK into recession.

              ‘You’re all going to be worse off and some of you will lose your jobs, livelihoods and businesses. But hey! We will still have drinking water and mars bar whey.’

              Put that on the side of a bus and see how many people would vote for it!

              1. AgentV


              2. Property Pundit

                Bet you’re as much ‘Remain’ with Rightmove too aren’t you?



                1. AgentV

                  #takebackcontrol of what exactly? All I can see is us losing control of everything!

  4. natural_selection

    I called this a couple of weeks ago, some disagreed, you probably thought I was endorsing PB & online model over high street. That’s not the case, but a few tweaks to their pricing model along with a better management team and there will be a place for this type of agency service.

    1. DoSomeWork

      Agree but you aren’t allowed to post anything positive about PB so be prepared for incoming hostility and abuse from the blind 

  5. Ostrich17

    Very little useful information here – the forecast market share in 5 years is not going to happen without another £100million investment to offset the increased cash burn, which will be the result of changing the pricing model.

    If they go down the NSNF route, then they will need a lot more than 7.5% market share, or charge a much higher fee, to make a profit as they will only earn on 50% of their listings.


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