Purplebricks is set to increase its fees next month in the latest attempt by its CEO, Helena Marston, to boost the online estate agency’s fortunes.
EYE revealed at the start of last month that the company plans to hike its fees in a bid to make the business viable. The Times is among a handful of publications that has now picked up on this story.
The company charges £1,999 upfront in London and the south-east to sell a property, a fee that from February will jump to £2,999.
In the case of the higher pricing tier geographic areas which comprise London and most of the south-east of the country, the Classic, which currently costs £1,999 will rise to £2,999. The Pro package (which includes viewings) will go from £2,499 to £3,999.
The lower tier pricing areas covering the rest of the country will also be going up by a similar proportion.
Purplebricks cut around 10% of its staff a few days before Christmas, with the move impacting roles across the business.
EYE also revealed, in October, that staff members at Purplebricks faced potential redundancies, after we were informed that the business had entered a consultation process with employees.
A Purplebricks spokesperson told EYE that close to 90 members of staff lost their jobs, although some of the redundancies, were voluntary.
Purplebricks has undergone multiple major management changes in recent months, including the appointment of Dominique Highfield as its new chief financial officer (CFO) in October. The previous CFO, Steve Long, departed after just nine months in the role.
The CFO change came at a turbulent time for the agency, when one of its shareholders, Lecram Holdings, called for the removal of chairman Paul Pindar, hours after the company in August reported its first annual loss since the pre-pandemic 2019 fiscal year.
Lecram, the investment vehicle of Adam Smith, lost its battle last month to reshuffle the board.
Some 71% of shareholders voted to keep Paul Pindar in place as chairman, but 29% voted for his removal. Nearly 42% of shareholders voted to appoint Harry Hill as a director, but 58% voted against this.
Purplebricks’ share price has fallen 90% in the last 18 months, which was already a long way from the highs of 2018 when the group was valued at more than £1bn. Its market value is now just £35m.
NEWSFLASH – Purplebricks believed to be bringing in a massive price hike
Comments (4)
Wow. Pro package, 4k upfront. Who’s going to pay that??
Do they not sub out their viewings? The LPA covering my area also covers another – surely that’s more than enough work already. If not now, it soon will be when their £4k fees reduce their instructions in a tough instruction market. Wonder how many people are still in the elusive Post sales support team that always has been a contradiction to its name.
This is where govt protection is required. We can’t strike for better pay.
Our industry has been destroyed by city money keeping these fake , cheap onliners in business.
Disruption is fake and creates no tax for nhs.
Pointless.
I spoke to a Local expert friend of mine towards the back end of last year and they said to me they are currently overstretched, especially considering the recent cuts of the support staff.
There was apparently a recent push on selling viewing packages – of which this directive from management has seemingly taken the wind out of some of the Local experts sails because all they’re doing now is running around doing viewings for a good chunk of the day.
I know there is a wise crack to be had by saying ‘well if they appraised/marketed the property at the right price in the first place, they wouldn’t have to do so many viewings’ and yes whilst that generally that is correct, we know that not all houses are black and white like that, especially in this uncertain market. There’s always doing to be the unexpected, unforeseen issues which crop up to hinder you, as well as if neighbouring local experts leave the business – who is going to continue doing their viewing packages? I suspect their local colleagues would end up inheriting those listings…
Needless to say, my friend is looking for a new job. I suspect there will be others who have a similar mindset and vote with their feet.
Market cap today is £28.5m
Cash and cash equivalents at 31 October 2022 of £31.3m
I highly doubt that the business will be able to attract any new investment (unless Axel go for a bid) so literally its just a matter of time now