Purplebricks

Michael Bruce, Kenny Bruce and David Shepherd conceived their idea for an online estate agency in 2012.{{cite news |last=Lemen-Hogarth |first=Jen |date=14 September 2017 |title=Purplebricks: Hybrid estate agency's lessons from the UK |url=https://www.realestatebusiness.com.au/opinions/16446-purplebricks-hybrid-estate-agency-s-lessons-from-the-uk |work=Real Estate Business |location=Australia |access-date=6 May 2021}}{{cite news |last=Renshaw |first=Rosalind |date=19 March 2014 |title=Former Burchell Edward brothers return to estate agency |url=https://propertyindustryeye.com/former-burchell-edward-brothers-return-to-estate-agency/ |work=Property Industry Eye |location= |access-date=6 May 2021}} Property sales in the United Kingdom had historically been handled by traditional (or "high street") estate agencies.{{cite news |last=Allen |first=Kate |date=22 August 2014 |title=Property portals hand control to homeowners |url=https://www.ft.com/content/aba393a6-29e9-11e4-8139-00144feabdc0 |work=Financial Times |location= |access-date=28 April 2021}} The brothers previously led one such agency, Burchell Edwards, and believed that a lower-cost, digital model for residential property sales could be developed that reduced expenses associated with running a chain of physical offices.{{Cite journal |last=Baum |first=Andrew |date=April 2017 |title=PropTech 3.0: the future of real estate |url=http://www.oxfordleadershipprize.org/sites/default/files/2018-07/PropTech3.0.pdf |journal=University of Oxford Research}} The name “Purplebricks” was chosen for this venture while brainstorming around a kitchen table.{{cite news |last=Norwood |first=Graham |date=10 August 2018 |title=Purplebricks' founders came up with the name around a kitchen table |url=https://www.estateagenttoday.co.uk/breaking-news/2018/8/purplebricks-founders-came-up-with-brand-name-around-a-kitchen-table |work=Real Estate Today |location= |access-date=15 April 2021}} The founders felt that the colour purple symbolised "regalness" while "bricks" reflected property and technology, and that “Purplebricks” would be a recognisable brand name.{{cite news |date=30 June 2017 |title=Michael Bruce: The entrepreneur behind Purplebricks who's shaking the foundations of estate agency

|url=https://www.standard.co.uk/business/michael-bruce-the-entrepreneur-behind-purplebricks-who-s-shaking-the-foundations-of-estate-agency-a3577011.html |work=Evening Standard |location= |access-date=5 May 2021}}

The corporate parent of Purplebricks was initially registered in April 2012 with the name New Portal Limited. In October 2012, the name was changed to New Broom Limited, signalling a desire to sweep clean the existing UK residential property market and bring about a fresh approach.{{Cite web|title=PURPLEBRICKS GROUP PLC |url=https://find-and-update.company-information.service.gov.uk/company/08047368 |access-date=28 April 2021| website=Companies House |language=en}} Early investors included DN Capital, the London-based technology fund, Paul Pindar, the former CEO of Capita, Martin Bolland, Capita's then non-executive chairman, and Errol Damelin, the founder of Wonga.{{cite news |date=18 March 2014 |title=DN Capital leads investment in Purplebricks alongside former Capita boss |url=https://www.privateequitywire.co.uk/2014/03/18/198790/dn-capital-leads-investment-purplebricks-alongside-former-capita-boss |work=Private Equity Wire |location= |access-date=28 April 2021}}{{cite news |last=Pescod |first=Adam |date=2 June 2014 |title=Online estate agency purplebricks.com is shaking up the housing market |url=http://elitebusinessmagazine.co.uk/interviews/item/hot-property-online-estate-agency-purplebrickscom-is-shaking-up-the-housing-market |work=Elite Business |location=UK |access-date=30 April 2021}}

In April 2014, Purplebricks publicly launched and began listing homes in the United Kingdom, although initially only within parts of southern England. In August, the company raised £8m of equity investment led by fund manager Neil Woodford, who acquired a 30 percent stake in the company.{{cite news |last=Rafiq Omar |first=Rayhan |date=21 August 2014 |title=Purplebricks raises £8m to disrupt high street estate agents |url=https://www.uktech.news/news/purplebricks-raises-8m-round-led-by-neil-woodford-to-disrupt-estate-agents-20140821 |work=UKTN |location= |access-date=30 April 2021}}{{cite news |last=Renshaw |first=Rosalind |date=4 December 2015 |title=Purplebricks says 'not possible' to run online agent alongside high street model |url=https://propertyindustryeye.com/purplebricks-says-not-possible-to-run-online-agent-alongside-high-street-model/ |work=Property Industry Eye |location= |access-date=30 April 2021}} By May 2015, operations expanded into other regions of England and Wales, and plans were announced for a possible stock market listing.{{cite news |date=28 May 2015 |title=Factbox - UK real estate agents planning IPOs |url=https://news.yahoo.com/news/factbox-uk-real-estate-agents-planning-ipos-114322640--sector.html |agency=Reuters |location= |access-date=30 April 2021}} The company appointed Canaccord Genuity to oversee the potential float.{{cite news |last=Lynch |first=Russell |date=24 March 2015 |title=Purplebricks to put its own house up for sale |url=https://www.independent.co.uk/news/business/news/purplebricks-put-its-own-house-sale-a123966.html |work=The Independent |location=UK |access-date=30 April 2021}} Expansion into Northern Ireland and Scotland followed in June and November, respectively.{{cite news |last=Stinson |first=Jamie |date=1 June 2015 |title=Northern Ireland online estate agents return home with 'cheaper alternative'|url=https://www.belfasttelegraph.co.uk/business/news/northern-ireland-online-estate-agents-return-home-with-cheaper-alternative-31270593.html |work=Belfast Telegraph |location=UK |access-date=30 April 2021}}{{cite news |last=Norwood |first=Graham |date=24 November 2015 |title=Purplebricks launches in another region as stock market float nears |url=https://www.estateagenttoday.co.uk/breaking-news/2015/11/purplebricks-launches-in-another-region-as-stock-market-float-nears |work=Estate Agent Today|location=UK |access-date=30 April 2021}}

In December 2015, Purplebricks formally announced its plan to launch on AIM later that month, making it the first online estate agency to debut on the stock market.{{cite news |last=Kollewe |first=Julia |date=3 December 2015 |title=Purplebricks float expected to value online estate agent at £240m |url=https://www.theguardian.com/business/2015/dec/03/purplebricks-float-value-online-estate-agent-240m |work=The Guardian |location= |access-date=15 April 2021}}{{cite news |last=Steafel |first=Eleanor |date=3 December 2015 |title=Purplebricks Becomes First Online Estate Agent To List In London |url=https://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/12031121/Purplebricks-becomes-first-online-estate-agent-to-list-in-London.html |work=The Telegraph |location=UK |access-date=30 April 2021}} Ahead of the float, the company stated that it had 4,300 residential properties listed for sale—nearly twice the number of the next largest online agency—and intended to use raised funds to further boost its national presence, acquire more agents, and invest in the brand and technology.{{cite news |last=Evans |first=Judith |date=3 December 2015 |title=Woodford-backed Purplebricks heads for Aim IPO |url=https://www.ft.com/content/57a6a752-99a0-11e5-9228-87e603d47bdc |work=Financial Times |location=UK |access-date=30 April 2021}} The company also announced it had already sold £58 million worth of shares, primarily to three major corporate investors: Old Mutual, Artemis, and Fidelity.{{cite news |last=Curwen |first=Edward |date=17 December 2015 |title=Purplebricks valued at £240 million for IPO |url=https://www.thetimes.com/travel/destinations/uk-travel/england/london-travel/purplebricks-valued-at-pound240-million-for-ipo-jh8t9b7kq0d |work=The Times |location=UK |access-date=30 April 2021}} As part of the IPO process, the corporate parent of Purplebricks, New Broom Limited, re-registered as a public limited company with the name Purplebricks Groups Limited. Shares began trading on 17 December. Just under a quarter of the company sold to investors, valuing the online estate agent at £240.2 million.

In June 2016, Purplebricks announced that it had recruited an Australian management team and planned to launch its platform in the country.{{cite news |date=16 June 2016 |title=Online estate agent Purplebricks sees UK profit, eyes Australia market |url=https://www.financialexpress.com/industry/online-estate-agent-purplebricks-sees-uk-profit-eyes-australia-market/286919/ |agency=Reuters |location= |access-date=3 May 2021}} In August, Purplebricks launched a media campaign in Australia about the company's fixed-price property marketing, and formally launched its operations there later that month.{{cite news |date=14 June 2016 |title=UK Real Estate Agency Disruptor Purplebricks Appoints VCCP Sydney for Australian Launch |url=https://www.lbbonline.com/news/uk-real-estate-agency-disruptor-purplebricks-appoints-vccp-sydney-for-australian-launch |work=Little Black Book |location= |access-date=3 May 2021}}{{cite news |date=30 August 2016 |title=VCCP Sydney Launches Purplebricks Into Australia To Disrupt The Real Estate Sector |url=https://www.financialexpress.com/industry/online-estate-agent-purplebricks-sees-uk-profit-eyes-australia-market/286919/ |agency=Reuters |location= |access-date=3 May 2021}}{{cite news |last=Stiles |first=Jackson |date=5 September 2016 |title="Super profits" of real estate agents back in the spotlight |url=https://www.smartcompany.com.au/industries/property/super-profits-real-estate-agents-back-spotlight/ |work=SmartCompany |location=Australia |access-date=3 May 2021}} In 2017, Purplebricks’ Australian subsidiary generated a £6.1 million loss with £3.9 million spent on administration costs and £3.8 million spent on marketing and PR-related costs.{{cite news |last=Schlesinger |first=Larry |date=June 29, 2017 |title=Australian expansion keeps Purplebricks in the red |url=https://www.afr.com/property/residential/australian-expansion-keeps-purplebricks-in-the-red-20170629-gx1do3 |work=Financial Review |location=Australia |access-date=3 May 2021}}

Purplebricks expanded into the United States in 2017, beginning operations in Los Angeles before moving into San Diego, Sacramento, Fresno, and then New York in 2018.{{cite news |last=Olick |first=Diana |date=15 September 2017 |title=No more 6% commission – these brokers will sell your house for a flat fee |url=https://www.cnbc.com/2017/09/15/no-more-6-percent-commission--these-brokers-will-sell-your-house-for-a-flat-fee.html |work=CNBC |location=United States |access-date=3 May 2021}}{{cite news |date=23 January 2018 |title=UK's Purplebricks to enter New York in wider U.S. real estate push |url=https://www.reuters.com/article/us-purplebricks-grp-expansion/uks-purplebricks-to-enter-new-york-in-wider-u-s-real-estate-push-idUSKBN1FD0PY |work=Reuters |location=United States |access-date=3 May 2021}}

The expansion was supported by more than $60 million in funds raised through a special stock offering.{{cite news |last=Wiggin |first=Teke |date=September 14, 2017 |title=Purplebricks is here: UK low-fee brokerage invades LA |url=https://www.inman.com/2017/09/14/purplebricks-is-here-uk-low-fee-brokerage-invades-la/ |work=Inman |location= |access-date=3 May 2021}} Purplebricks' business proposition remained essentially the same for U.S. customers: the company charged a listing fee of $3,200, which sellers were required to pay regardless of whether their home sold.

In August 2017, Purplebricks was featured on BBC's Watchdog following an investigation into claims of misleading customers.{{Cite news|url=https://www.telegraph.co.uk/business/2017/08/03/purplebricks-apologises-repeating-banned-claims-share-price/|title=Purplebricks apologises for repeating banned claims after share price falls 7pc|work=The Telegraph|access-date=2017-09-08|language=en-GB}}{{Cite web|url=https://thenegotiator.co.uk/purplebricks-bbc/|title=Purplebricks shares drop by 6% following BBC investigation - The Negotiator|website=thenegotiator.co.uk|language=en-GB|access-date=2017-09-08}}{{Cite news|url=http://www.mortgagesolutions.co.uk/news/2017/08/03/purplebricks-ceo-savaged-bbcs-watchdog/|title=Purplebricks CEO savaged on BBC's Watchdog - Mortgage Solutions|date=2017-08-03|work=Mortgage Solutions|access-date=2017-09-08|language=en-US}} In September 2017, consumer review website Trustpilot issued an open letter clarifying its Purplebricks review policy following allegations concerning the “validity of reviews of Purplebricks by customers”.{{cite press release|author=|title=Open Letter in response to questions regarding Purplebricks and Trustpilot|url=http://press.trustpilot.com/open-letter-in-response-to-questions-regarding-purplebricks-and-trustpilot|location=London|publisher=Trust Pilot|date=2017-09-14|access-date=2017-09-21}}{{cite web|url=https://www.estateagenttoday.co.uk/breaking-news/2017/9/exclusive-trustpilot-review-company-explains-its-purplebricks-policy|title=Exclusive: Trustpilot review company explains its Purplebricks policy|date=2017-09-14|website=Estate Agency Today|access-date=2017-09-21}} That same month, the company was accused of “corporate bullying” following suspension from estate agent review website allAgents.co.uk. Purplebricks threatened the consumer review website with legal action over the publication of negative reviews due to the site's lack of vetting for those leaving reviews.{{Cite news|url=https://www.thetimes.com/business-money/article/reviews-site-accuses-purplebricks-of-corporate-bullying-mzgfsxcdd|title=Purplebricks 'bullied review website' over negative responses|work=The Times|access-date=2017-09-21|language=en-GB}}{{Cite news|url=https://www.nytimes.com/reuters/2017/09/19/business/19reuters-purplebricks-grp-reviews.html?mcubz=3|title=Website Suspends Purplebricks Reviews Page After Legal Threats|work=NY Times|access-date=2017-09-21|language=en-US}}{{Cite web|url=https://thenegotiator.co.uk/escalating-purplebricks-vs-allagents-spat-goes-global/|title=Escalating Purplebricks vs allAgents spat goes global|website=The Negotiator|language=en-GB|access-date=2017-09-21}}

In July 2018, Purplebricks expanded their operations into Canada through the $38 million acquisition of DPCF, a Canadian real estate company that also positioned itself as "commission-free".{{cite news |last=Hinchliffe |first=Emma |date=2 July 2018 |title=Purplebricks expands into Canada through acquisition |url=https://www.inman.com/2018/07/02/purplebricks-expands-into-canada-through-acquisition/ |work=Inman |location= |access-date=4 May 2021}}{{cite news |date=9 July 2018 |title=Purplebricks purchases DuProprio/ComFree |url=https://www.realestatemagazine.ca/purplebricks-purchases-duproprio-comfree/ |work=REM (Real Estate Magazine) |location= |access-date=4 May 2021}} The acquisition announcement noted that DPCF would continue to be led by the existing management team.{{cite press release |date=2 July 2018 |title=Acquisition of DuProprio/ComFree |url=https://markets.ft.com/data/announce/full?dockey=1323-13700561-37HMUCR982QI3RICINJF947OI3 |location= |publisher=Financial Times |access-date=4 May 2021}}

In October 2018, Purplebricks announced it would be entering the European market through a joint venture with digital publisher Axel Springer SE. The two companies would jointly purchases a 25.9% stake in Homeday, a German online estate agent.{{cite news |date=14 October 2018 |title=Purplebricks pushes into Germany with Homeday stake purchase |url=https://www.reuters.com/article/us-purplebricks-grp-operations-germany/purplebricks-pushes-into-germany-with-homeday-stake-purchase-idUSKCN1MP0IH |work=Reuters |access-date=6 May 2021}}

Like Purplebricks, Homeday markets itself by highlighting its lower selling fees compared to traditional agents.{{cite news |last=Lewis |first=Nigel |date=17 June 2020 |title=Purplebricks invests more cash in growing German copycat |url=https://thenegotiator.co.uk/purplebricks-invests-cash-in-growing-germany-wannabe/ |work=The Negotiator |publisher=Propertydrum Ltd. |access-date=6 May 2021}}

Forbes magazine reported in January 2020 that an email was sent from Purplebricks Canada's marketing department to all employees asking for positive reviews from friends and family regardless of whether they had had any business dealings with the company. In exchange it was reported that the employee that facilitated the most reviews would receive a paid day off.{{Cite web|last=Midolo|first=Emanuele|title=Purplebricks Canada Offered Employees Days Off For Made Up 5-Star Reviews|url=https://www.forbes.com/sites/emanuelemidolo/2020/01/22/purplebricks-canada-offered-employees-days-off-for-made-up-5-star-reviews/|access-date=2020-11-22|website=Forbes|language=en}}

In June 2020, Purplebricks, Axel Springer, and venture capital firm Project A made further investments in Homeday to help the company expand its operations.{{cite news |date=17 July 2020 |title=Axel Springer and Purplebricks make further investments in Homeday |url=https://propertyindustryeye.com/axel-springer-and-purplebricks-make-further-investments-in-homeday/ |work=Property Industry Eye |location=UK |access-date=6 May 2021}}

In August 2018, the Australian Financial Review (AFR) reported troubling management and lacklustre sales issues.{{cite web|url=https://www.afr.com/real-estate/residential/inside-the-purplebricks-sweatshop-former-agent-accuses-it-of-toxic-culture-20180726-h135t7|title=Inside the Purplebricks sweatshop: former agent accuses it of toxic culture|date=22 August 2018|website=afr.com|access-date=18 September 2018}}{{cite web|url=http://www.propertyindustryeye.com/fall-out-in-australia-reaches-uk-shores-as-ex-purplebricks-agent-accuses-it-of-failure/|title=Fall-out in Australia reaches UK shores as ex-Purplebricks agent accuses it of failure|date=28 August 2018|website=propertyindustryeye.com|access-date=18 September 2018}}{{cite web|url=https://thenegotiator.co.uk/purplebricks-sales-targets-australia/|title=Leaked data from Purplebricks in Oz suggests it was 70% off target in June|website=thenegotiator.co.uk|access-date=18 September 2018}} In February 2019, Purplebricks' share price dropped sharply after it lowered its US and Australia revenue forecasts.{{cite web|url=https://www.reuters.com/article/us-purplebricks-grp-outlook/purplebricks-shares-plummet-on-lower-revenue-forecast-idUSKCN1QA0TW|title=Purplebricks shares plummet on lower revenue forecast|date=21 February 2019|work=Reuters|access-date=22 February 2019}} In May 2019, Purplebricks vowed to shut down operations in Australia due to lack of profitability, after reporting an $18m interim loss for the six months to October.{{Cite web|url=https://www.afr.com/real-estate/residential/purplebricks-to-quit-australia-20190507-p51kzo |title=Purplebricks to quit Australia|date=2019-05-07|website=Australian Financial Review|language=en|access-date=2019-05-08}} This came days after the company's then CEO, Michael Bruce was laid off after disagreements with Paul Pindar over the failed overseas expansion.{{Cite news|last=Clarence-Smith|first=Louisa|url=https://www.thetimes.com/life-style/property-home/article/purplebricks-shuts-down-cash-hungry-american-business-xsk0z852d|title=Purplebricks shuts down cash-hungry American business|newspaper=The Times |access-date=2020-02-21|language=en|issn=0140-0460}} The AFR reported that "increasingly challenging market conditions" and "execution errors" contributed to Purplebricks closure of Australian operations.{{Cite web|url=https://www.afr.com/real-estate/residential/purplebricks-to-quit-australia-20190507-p51kzo|title=Purplebricks to quit Australia|date=2019-05-07|website=Australian Financial Review|language=en|access-date=2019-05-08}}

In July 2019, new CEO Vic Darvey announced that Purplebricks would be shutting down operations in the United States, announcing that operating costs had risen to almost £52.3 million, said that it would focus its attention on Britain and Canada.

In 2020, the company reported revenue of £111.1 million and an operating income of -£9.4 million.{{Cite web|date=2020-08-03|title=Estate agent Purplebricks reports record-breaking July instructions|url=https://www.cityam.com/estate-agent-purplebricks-reports-record-breaking-july-instructions/|access-date=2022-01-18|website=CityAM|language=en-GB}}{{Cite web|title=Purplebricks Annual Report 2020 web|url=https://www.purplebricksplc.com/application/files/9116/1643/1049/Purplebricks_Annual_Report_2020_web.pdf}}{{Cite web|date=2020-08-06|title=Purplebricks' instructions fall by 23% year-on-year|url=https://propertyindustryeye.com/purplebricks-instructions-fall-by-23-year-on-year/|access-date=2022-01-18|website=Property Industry Eye|language=en-US}}

On July 15, 2020 Desjardins Group announced that they were purchasing the Canadian business of Purplebricks Group PLC for US$60.5 million.{{Cite web|last=GmbH|first=finanzen net|title=Desjardins Group acquires a real estate holding, including DuProprio, from Purplebricks Group plc for CAN$60.5M {{!}} Markets Insider|url=https://markets.businessinsider.com/news/stocks/desjardins-group-acquires-a-real-estate-holding-including-duproprio-from-purplebricks-group-plc-for-can-60-5m-1029398414|access-date=2020-11-22|website=markets.businessinsider.com|language=en-us}} It was reported that in the first year of operation, Purplebricks Canada ran an operating loss of US$4.8m. According to BNN Bloomberg at the time of the acquisition, Purplebricks Canada and DuProprio had "more than 500 employees in Quebec, Ontario, Manitoba and Alberta".{{Cite web|agency=The Canadian Press|date=2020-07-16|title=Desjardins acquires two real-estate brands from U.K.-based firm - BNN Bloomberg|url=https://www.bnnbloomberg.ca/desjardins-acquires-two-real-estate-brands-from-u-k-based-firm-1.1466343|access-date=2020-11-22|website=BNN}} Desjardins was permitted to use the Purplebricks brand and logos until December 2020.{{Cite news|title=U.K.-based real estate brokerage firm Purplebricks pulls out of Canada, sells operations to Desjardins|url=https://www.theglobeandmail.com/business/article-uk-based-real-estate-brokerage-firm-purplebricks-pulls-out-of-canada/|access-date=2020-11-22}}

In August 2021, Purplebricks announced its strategic focus was now "fully on the UK", where it planned to accelerate its model, extend its market share, and continue to grow revenue.{{cite news |last=Metcalf |first=Sam |date=3 August 2021 |title='Resilient' Purplebricks ready to focus on UK

|url=https://www.thebusinessdesk.com/westmidlands/news/2042958-resilient-purplebricks-reads-to-focus-on-uk |work=TheBusinessDesk.com |location=UK |access-date=4 May 2021}}{{cite news |last=Metcalf |first=Sam |date=7 August 2021 |title=Purplebricks CEO focused on building share in UK through better customer experience |url=https://www.proactiveinvestors.co.uk/companies/news/926121/purplebricks-ceo-focused-on-building-share-in-uk-through-better-customer-experience-926121.html |work=Proactive |location=UK |access-date=15 June 2021}}

In December 2021, Purplebricks delayed publication of its results and warned shareholders that it could be forced to pay up to £9 million in compensation to tenants of its landlords. It said that during an internal review it discovered a regulatory “process issue in how it has been communicating with tenants on behalf of its landlords in relation to deposit registrations”.{{Cite web|url=https://www.thetimes.com/life-style/property-home/article/purplebricks-delays-results-over-9m-compensation-risk-z09l0w7t0|title=Purplebricks delays results over £9m compensation risk|first=Alex|last=Ralph|via=www.thetimes.co.uk}}

Strike, the Charles Dunstone-backed competitor, acquired Purplebricks, for a nominal amount of £1, posing a significant risk of redundancy for its workforce of over 750 employees. Purplebricks, which experienced a peak valuation of over £1.3 billion, underwent a change in ownership in 2023.{{Cite news |last=Sweney |first=Mark |date=2023-05-17 |title=Online estate agent Purplebricks sold for £1, risking 750 jobs |language=en-GB |work=The Guardian |url=https://www.theguardian.com/business/2023/may/17/online-estate-agent-purplebricks-sold-charles-dunstone-strike |access-date=2023-05-22 |issn=0261-3077}}

Purplebricks is a technology-led{{cite news |last=Da Silva |first=Marc|date=16 December 2020 |title=Purplebricks shares surge as buyers shift to technology-led platforms |url=https://propertyindustryeye.com/purplebricks-shares-surge-as-buyers-shift-to-technology-led-platforms/ |work=Property Industry Eye |location= |access-date=11 June 2021}} estate agency that provides a hybrid service, as it combines the use of an online platform and local property agents.{{cite news |title=About Purplebricks Group PLC |url=https://www.reuters.com/companies/PURP.L |work=Reuters |location= |access-date=25 May 2021}}{{cite news |last=Casserly |first=Martyn |date=3 December 2020 |title=Best UK online estate agents 2020 |url=https://www.techadvisor.com/buying-advice/internet/best-online-estate-agent-3697838/ |work=Tech Advisor |publisher= IDG Communications Ltd. |access-date=25 May 2021}} Vendors and landlords can manage their property let or sale using the online platform and app.{{cite news |date=14 March 2016 |title=What, exactly, is Purplebricks, Mr Bruce? |url=https://thenegotiator.co.uk/exactly-purplebricks-mr-bruce/ |work=The Negotiator |publisher=Propertydrum Ltd. |location=UK |access-date=6 May 2021}} The local property agents assist with valuations, listings, and other ancillary services. The company does not maintain a branch network of brick-and-mortar estate agencies, which reduces fixed costs associated with rent, energy usage, and other operational expenses. In part due to these savings, Purplebricks charges customers lower fixed fees.{{cite news |date=30 June 2017 |title=Michael Bruce: The entrepreneur behind Purplebricks who's shaking the foundations of estate agency

|url=https://www.standard.co.uk/business/michael-bruce-the-entrepreneur-behind-purplebricks-who-s-shaking-the-foundations-of-estate-agency-a3577011.html |quote= Their bet was that sellers looking for online help flogging their home would be won over by the site’s natty technology, plus local property experts on the ground, getting rid of the costly bricks and mortar overheads to slash fees for sellers.

|work=Evening Standard |location= |access-date=5 May 2021}}

Purplebricks charges a fixed upfront fee for its services that sellers pay to be listed, rather than a percentage of the sale price once the property sells.{{Cite journal |last=Baum |first=Andrew |date=April 2017 |title=PropTech 3.0: the future of real estate |url=http://www.oxfordleadershipprize.org/sites/default/files/2018-07/PropTech3.0.pdf |journal=University of Oxford Research |pages=57–58}} This fee includes consultation services from a local agent, photography of the property, listings on property portals like Rightmove and Zoopla, and management of the sales process. Payment may be made when the property is listed or after a ten month deferral. This approach is different from the commission-based structures of traditional estate agencies, in which agents are paid their fee only if the property sells.

Local agents are referred to as “local property experts” and work remotely in their local area. Agents visit the seller’s home directly to discuss the sale and value the property—and, once instructed, to provide services, including creating a floorplan of the property, taking pictures, and providing assistance with other aspects of online marketing. For an additional fee, agents can lead viewings of the property. They may also assist with negotiations when selling.

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Purplebricks' commission-free, hybrid agency business model was intended to disrupt the UK residential property market, and marketing has been a central element of the company's business strategy.{{cite news |last=Norwood |first=Graham |date=11 September 2019 |title=Purplebricks spends £382 per instruction on marketing alone |url=https://www.estateagenttoday.co.uk/breaking-news/2019/9/purplebricks-spends-382-per-instruction-on-marketing-alone |work=Estate Agent Today|location=UK |access-date=25 May 2021}}

In 2016, Purplebricks began using the tagline "commisery", meaning the misery home sellers feel about paying commission, to distinguish itself from traditional real estate agencies.{{cite news |last=Lewis |first=Nigel |date=6 August 2019 |title=Purplebricks ditches 'commisery' in favour of less aggressive TV adverts |url=https://thenegotiator.co.uk/purplebricks-tv-ads/ |work=The Negotiator |publisher=Propertydrum Ltd. |location=UK |access-date=16 May 2021}} A full advertising campaign about the concept followed the next year, and ran extensively in the UK, US, and Australia.{{cite news |last=Norwood |first=Graham |date=17 January 2017 |title=Purplebricks recruits TV property star for 'Commisery' campaign |url=https://www.estateagenttoday.co.uk/breaking-news/2017/1/purplebricks-recruits-tv-property-star-for-commisery-campaign |work=Estate Agent Today |location=UK |access-date=25 May 2021}}{{cite news |last=Renshaw |first=Rosalind |date=6 July 2018 |title=Purplebricks commisery campaign could prove a winner for advertising agency |url=https://propertyindustryeye.com/purplebricks-commisery-campaign-could-prove-a-winner-for-advertising-agency/ |work=Property Industry Eye |location= |access-date=25 May 2021}} The campaign won an Effectiveness Award from the Institute of Practitioners in Advertising in 2018 for demonstrating proof on payback on marketing communications,{{cite news |last=Oakes |first=Omar |date=10 October 2018 |title=BBH and Audi win IPA Effectiveness Grand Prix |url=https://www.campaignlive.co.uk/article/bbh-audi-win-ipa-effectiveness-grand-prix/1495545 |work=Campaign |location= |access-date=25 May 2021}} as the campaign contributed to a 218 percent growth in revenue.{{cite web |title=2018 IPA Effectiveness Awards: Insights from the winning campaigns |url=https://www.scribd.com/document/500417649/2018-IPA-Effectiveness-Awards-Insights |publisher=Institute of Practitioners in Advertising |location=UK |via=Scribd |access-date=25 May 2021}}

In 2019, Purplebricks was added to the Superbrands list, which tracks consumer perception of brand and marketing activity.{{cite news |last=Lewis |first=Nigel |date=15 April 2019 |title=Purplebricks now a 'superbrand' alongside Rightmove and best-known agents

|url=https://thenegotiator.co.uk/superbrands-purplebricks-rightmove/ |work=The Negotiator |location=UK |access-date=25 May 2021}}{{cite web |date=13 April 2019 |title=Superbrands Annual 2019

|url=https://library.superbrands.com/Online%20-%20Supplements/UK%20Guardian%20Supplement%202019.pdf |work=The Centre for Brand Analysis |location=UK |access-date=25 May 2021}} Purplebricks' presence on the list was seen as an indication that the company had established itself as a household name.{{cite news |last=Stewart |first=Rebecca |date=12 February 2020 |title=Purplebricks CEO on using less 'commisery' and more data to boost its brand creds |url=https://www.thedrum.com/news/2020/02/12/purplebricks-ceo-using-less-commisery-and-more-data-boost-its-brand-creds |work=The Drum |quote=Purplebricks joined Netflix, Apple and Amazon on the Superbrand index last year, a sure sign it's gaining relevance as a household name. |access-date=25 May 2021}} In 2020, Purplebricks claimed to have achieved 98 percent brand awareness within the UK.{{cite news |last=Renshaw |first=Rosalind |date=15 December 2020 |title=Purplebricks smashes profit forecasts after surge of new customers |url=https://www.proactiveinvestors.co.uk/companies/news/936524/purplebricks-smashes-profit-forecasts-after-surge-of-new-customers-936524.html |work=Proactive Investors |location=UK |access-date=25 May 2021}}

In 2021, Purplebricks arranged a product placement on the British soap opera series Coronation Street.{{cite news |last=Lewis |first=Nigel |date=14 May 2021 |title=Purplebricks lands major Corrie product placement coup |url=https://thenegotiator.co.uk/purplebricks-itv-coronation-street/ |work=The Negotiator |publisher=Propertydrum Ltd. |location=UK |access-date=25 May 2021}}{{cite news |last=Da Silva |first=Marc |date=14 May 2021 |title=Purplebricks instructed to sell Coronation Street's iconic Rovers Return |url=https://propertyindustryeye.com/purplebricks-instructed-to-sell-coronation-streets-iconic-rovers-return/ |work=Property Industry Eye |location=UK |access-date=25 May 2021}} The company was featured as the estate agent that would be selling the show's fictional Rovers Return Inn. The appearance of the Purplebricks sign above the pub marked the first time a firm had integrated a product into one of the show's storylines.

In 2024, ITV agreed to support Strike/Purplebricks with £1.5 million in convertible loan notes.{{Cite web |title=ITV takes stake in online estate agent Purplebricks |url=https://www.ft.com/content/5e9553ab-4a02-4802-89ca-e694f2659c59 |access-date=2024-07-10 |website=www.ft.com}} However, only a few months later, the BBC heavily criticised Purplebricks following numerous complaints from unsatisfied clients whose homes failed to sell.{{Cite news |title=Morning Live - Series 6: 18/06/2024 |url=https://www.bbc.co.uk/iplayer/episode/m0020bfj/morning-live-series-6-18062024 |access-date=2024-07-10 |work=BBC iPlayer |language=en-GB}}{{Cite web |last=Lewis |first=Nigel |date=2024-06-19 |title=Purplebricks service heavily criticised during BBC investigation |url=https://thenegotiator.co.uk/news/agencies-people-news/purplebricks-service-heavily-criticised-during-bbc-investigation/ |access-date=2024-07-10 |website=The Negotiator |language=en-GB}} These clients reported having to pay for a purportedly free service that did not succeed in finding buyers.

{{Reflist}}

{{Real estate in the United Kingdom}}

{{Authority control}}

Category:Real estate companies established in 2012

Category:British companies established in 2012

Category:Property companies based in London

Category:Property services companies of the United Kingdom

Category:Companies listed on the Alternative Investment Market

Category:2015 initial public offerings

Category:British real estate websites