Online estate agency Strike has rebranded as Purplebricks following the acquisition of its rival in June of this year. The move will see Purplebricks operating the same “sell your home for free” model as Strike.
The acquisition of Purplebricks by Strike saw it delisted from AIM with the rebrand acknowledging the national awareness it has built since its launch by Kenny and Michael Bruce in 2012. At its height the business was valued at £1.3bn and launched in North America and Canada. It was sold to Strike for £1 after revealing anticipated financial year losses of £20-30m.
Before its sale Purplebricks charged a flat fee for selling houses of £999 outside London and £1,499 inside London. In order to increase its revenues it charged add-on fees for extras including photos, viewings and panel conveyancing services.
Under the new pricing model Purplebricks will sell property for free, with revenue generated from the add-ons to vendors and purchasers.
Commenting on the rebrand Sam Mitchell, CEO at Purplebricks said:
“The process for buying and selling properties hasn’t changed in almost 200 years. It’s a stressful and costly journey that should be simplified, which is what we’re doing today. Customers are now able to sell their home for free, with no hidden costs. They get everything they need to sell for free, with optional extras along the way, as well as access to Purplebricks’ expertise throughout.”
“After a brutally tough few years, the housing market is showing signs of life as we move into 2024. With viewings increasing and banks offering more competitive rates, we are confident our new model will drive us towards significant market growth.”
The acquisition was funded by private equity house Freston Ventures. Founding Partner Sir Charles Dunstone, added:
“Purplebricks was the original industry disintermediator and today we are disrupting the housing market by giving customers the option to sell their homes for free. We are creating a new force in estate agency that offers customers a much better experience for no cost. This is a great day for anyone looking to sell their home.
“At Freston Ventures, we focus on building household brands that are trusted by consumers across the UK. With decades of experience in building and growing businesses such as Carphone Warehouse, TalkTalk and Five Guys, we know what it takes to create brands that people love. We believe there is a better way to sell your house and we are building a market-leading proposition to deliver it.”
2 Responses
‘We are creating a new force in estate agency that offers customers a much better experience for no cost’ – are you though?
Purple Bricks and Strike are terrible. You’d be better getting a chimpanzee to sell your house.
Strike sold my house in two days and saved me approximately 11 grand. If thats the sort of service provided by a chimp I don’t see much future for traditional estate agents.