The surprise return of the founders of Purplebricks, Michael Bruce and Kenny Bruce, has already prompted a reaction among some estate agents, with rivals now speculating about what the move could mean for the company’s next strategy.
Purplebricks’ most recent attempt to shake up the housing market – allowing homeowners to sell their properties for free – quietly ended late last year.
The online estate agency introduced the fee-free model in December 2023 after its £1 acquisition by rival firm Strike, backed by Freston Ventures. The approach mirrored Strike’s model, offering sellers free services including valuations, listings, negotiations and app access, with optional paid add-ons.
The strategy was designed to revive Purplebricks after a period of financial turmoil that led to its sale. But its latest results showed losses widening, with pre-tax losses increasing from £19.4m to £37.8m in the year to 31 March 2024.
Following those figures, the company quietly scrapped the fee-free selling option and introduced a new pricing structure.
But with the Bruce brothers now returning after striking a deal with Purplebricks’s owner, Sir Charles Dunstone, the company’s future strategy is once again up for debate. The online estate agency may well look to undercut high street competitors on fees in a renewed push to win a larger share of property instructions.
According to Mark Kleinman of Sky News, the pair will take a significant minority stake alongside Dunstone’s investment vehicle, Freston Ventures.
Michael Bruce, who is expected to return as chief executive, told Sky News yesterday evening: “My brother and I are delighted to return home to the business we founded and are excited to work with Sir Charles Dunstone and the Purplebricks team to drive success and build market share in the UK housing market.
“We will work tirelessly to deliver an exceptional service for every homeowner whilst leading the business through its next phase of growth.”
Comments (10)
PB will lose money
But PB will take instructions from other agents
I could see a self employed version working
Stop moaning! The Bruce boys bring creativity and energy to the sector. Their relentless focus on delivering value for customers is a lesson for the rest of the sector. So what if they are not as profitable as RM ( yet).
I guess if the Bruce brothers are back I may have to start posting again…
The wanderer returns!!!! Welcome back Smile. We’ve missed you
wonder how many investors and agents they will turn over this time. The Purple ship sails again.
I’ve missed PB not being the main story on PIE every day.
they will attract some new idiot investors, get the price up, rape the shares and bugger off again, nice work if you can get it
Elite Thoughts. How on earth is cutting fees to a level where it is impossible to employ a sensible amount of staff to provide a decent service, let alone make a profit “pushing the industry forward”. Has Purple Bricks ever made a profit?
A loss of £38 million in 2024. Let’s generously say that going forward their average fee / turnover is £3000 per property, and assuming losses have not again increased during 2025, it would take the full income from 12,667 sales just to get back to a zero loss….before they start paying costs and salaries. Just saying.
The return of the Bruce brothers will certainly get people talking.
Whatever views agents have on Purplebricks, it undeniably changed how consumers think about selling property and opened the door to different models across the industry.
More choice for sellers usually pushes the whole industry forward. It will be interesting to see what comes next.