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.”
Purplebricks said yesterday that it faces a significant financial hit from how it has been registering tenants’ deposits
Early provisional estimates by the company suggest a potential risk in the range of £2m-9m, but reports on Sunday night had suggested a total bill of up to £30m.
Purplebricks has delayed the publication of its interim results, for the half-year to 31 October 2021, while it calculates the extent of the provision.