Purplebricks is set to sharply increase its fees in the latest attempt by its new boss to balance the books and transform the estate agent’s fortunes.
The group, which has no high street presence, charges £1,999 upfront in London and the southeast to sell a house, a fee that from February is understood will jump to £2,999. A £2,499 package that includes accompanied viewings is set to rise to £3,999. Sellers outside London can also expect fees to increase, according to two sources with knowledge of the changes.
Purplebricks confirmed that its prices would “increase modestly” in the first half of this year and that its most expensive package in London would rise to £3,999.
“We constantly review our prices to ensure we offer the best combination of value and an ever-improving service,” Helena Marston, its chief executive, said.
The company differentiates itself from traditional agents by not having high street shops and charging a fixed fee rather than taking a cut of the sale price. It has played up its relative cheapness compared with rivals, but critics expect its latest fee increases, assuming that they go ahead as planned, to mean it is no longer much cheaper than a traditional agent. For example, the sale of a £400,000 flat in London would likely earn a traditional agent a comparable £4,000 to £5,000 in commission.
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Purplebricks missed out on the busiest property market for more than a decade during the pandemic. Marston, who took up the role of chief executive last April, has failed to arrest its share price decline. Since she took over, the stock has lost half of its value and is down more than 90 per cent since the company was floated in 2015.
