Purplebricks faces ‘investigation’ following latest crisis

Further pressure has been piled on Purplebricks, after Propertymark announced last night that it is launching an investigation into the online estate agency 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.”

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.

 

Purplebricks delays trading update to prepare for ‘potential financial risk’

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3 Comments

  1. Bosky

    Might I suggest to PIE that they start producing a PB news bulletin!

    Suggested title:- Breaking news about Purplebricks from Property Industry Eye

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  2. WiltsAgent

    I wonder how they were able to obtain Client Money Protection, a legal requirement. David Oliver might want to start there because from what’s been revealed so far their CMP application forms may make interesting reading.

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  3. PeeBee

    From my Twitter page yesterday:  
     
    “.@naea_uk .@PropertymarkUK
    I believe I speak for a reasonable cross-section of the industry when I request that you carry out a full investigation alongside the other 2 main industry bodies that have a material interest in the outcome.
    How’s about that, .@NTSELAT and .@TPOmb ??”  
     
    A full under-the-bonnet look at this company’s workings by all our industry’s regulators is massively overdue – as it is desperately needed.  
     
    If you agree, I would ask that you get the message across also, by whatever means you have available.  
     
    Thank you.  Your colleague in industry,
    PB.

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