Carphone Warehouse tycoon Sir Charles Dunstone has said that estate agents get “money for old rope” and that online agents will do the industry what Uber has done to black cabs.
He made the claims in an interview with This is Money.
Dunstone, who also heads up Talk Talk, invested £5m into online agent HouseSimple earlier this year.
He hit out at traditional agents who charge “the same percentage commission for any property they sell, whatever the price”.
He went on: “The average house in the UK costs £6,000 to £7,000 in estate agents’ fees, against our [HouseSimple’s] £475.
“It’s doing to estate agents what Uber has done to Computer Cab. The idea of an expensive intermediary in the middle isn’t adding enough value.”
HouseSimple is described in the article as offering “consumers a different choice to grasping estate agents”.
The article also described Dunstone as having launched HouseSimple.
In fact, Dunstone neither launched the business, nor is a director, although he is a backer.
HouseSimple does have a non-executive director from Dunstone’s company Freston Ventures Management, Robert Clarkson. The majority shareholders of HouseSimple are Alex and Sophie Gosling.