Is Purplebricks still a major threat?
Instructions are up and even share price is up today, so is there still life in the giant yet? Despite having lost £millions in recent times, poor reports and with a somewhat negative appraisal from within the industry, is the recent upturn of consumers using the globally recognised brand a sign of things to come and can be taken as a positive?
Covid-19 has changed how we think about business in nearly all industry sectors and including that of estate agency. For sure we will see a shake up and things might not ever be the same again as, in my opinion, progress will has to increase in the #proptech route so that if lock-downs and high street agencies have to close then the industry can continue to survive mostly on-line.
Vic Darvey, CEO of Purplebricks was quoted as saying: “Despite the challenges of Covid-19, our strategic initiatives are being delivered at pace to accelerate our digital and data capabilities, and with a very healthy net cash balance of £66m, I’m confident that we can take advantage of the changing landscape.
The group is encouraged by the early signs of the housing market rebounding well following the lifting of the lock-down and the government’s stamp duty holiday.
We strongly believe that, in the current market, technology led estate agency is starting to emerge as the winning model and there is clear evidence that consumers are increasingly shifting towards apps and tech-based alternatives.
With our strengthened leadership team and balance sheet, we are in a strong position to accelerate our model, extend our market share and grow our value-add revenues.”
July saw a big jump in new instructions for Purplebricks, though we are seeing this across most of the sector anyway from property portals to high street agencies and with the stamp duty holiday period it isn’t anything that would raise eyebrows is it?
‘Estate agent Purplebricks recorded its highest ever month for instructions in the UK in July due to the stamp duty holiday and pent-up demand following the coronavirus lockdown.’ Read more via: CityAM website