PurpleBricks shareprice doubles in under 2 months.

Purple Bricks Logo

Since the latter part of January this year we have seen the shareprice of PurpleBricks double from the low of 70p, this now values the company at around 330m pounds as of last friday,  thats not bad for a company still in its infancy with massive advertising costs, is the market however about to embrace this business model?

The new online estate agency business model is only following what has happened on the High street to other forms of businesses like, Banks, Travel Agents and Clothes Shops, people no longer see it neccessary to try on clothes before they buy them, look at the likes of Boohoo and ASOS.

I really believe that PurpleBricks still have everything to prove despite their expensive advertising campaign, they really need to move to another level to justify what I see as an expensive valuation.

High Street Agents are highly unlikely to allow them to grow their business without making a challenge, already agents have cut their fees to be competitive, (that is a postive for the client)  The likes of Rightmove and Zoopla will be keeping a close eye on potential competitors and improving their service to both agents and home hunters alike, I am sure Onthemarket.com will also be monitoring PB’s progress closely. Other online Hybrid agents are entering the market all the time along with those that already exist, such as Tepilo, to mention just one.

The future could be rosy but these are very early days, costs and how PB manages effectively their team of local experts will be the all important factors in how the business progresses over the next 12 months and to what value is put on the company then.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Million home value boom

1m UK homes see value increases of 50 per cent or more in the last five years,  an average gain of £117,400   Eight in ten UK homes increased in value by over five per cent or more, an average increase of £60,800, with house values seeing a gradual increase since the 2020 pandemic Over…
Read More
Breaking News

Homebuyers saving over £4,000 in SDLT despite increase

Homebuyers saving over £4,000 in stamp duty despite threshold increase, by opting for this particular property type The latest research from over-50s property specialists, Regency Living, reveals that homebuyers opting for a park home instead of a traditional bricks-and-mortar property are an average of £4,316 better off due to not having to pay Stamp Duty…
Read More
Breaking News

Industry reacts to latest Gov HousePrice Index

The latest index shows that: – The average monthly rate of house price growth in May rebounded to 1.1% following the -2.7% decline seen in between March and  April. The average annual rate of house price growth in May was up 3.9%. As a result, the average UK house price is now £269,000.   Colleen…
Read More
Cozy Pet Cat Tree Grey
Breaking News

Renter’s Rights Bill pet u-turn creates more questions than answers

The latest U-turn in the Renter’s Rights Bill (RRB) concerning pet ownership may temporarily protect landlords from the cost of pet-related damage, but it leaves major questions unanswered, warns Inventory Base, the UK’s leading property inspection platform. As confusion grows around whether the proposed pet deposit amendment will pass, the industry is left in limbo,…
Read More
Breaking News

Landlords See Higher Net Returns

Landlords See Higher Net Returns Despite Rising Start-Up Costs and Falling Buy-to-Let Incomes New research from Dwelly, one of the UK’s leading lettings acquisition and success planning experts, reveals that, despite an increase in start-up costs and a reduction in total buy-to-let income, the average UK landlord has seen an improvement in net returns when…
Read More
Breaking News

London lettings market gains momentum in June

London lettings market buoyed by surge in supply and growing renter activity, Foxtons data shows   Heightened rental activity in June, with applicant registrations rising 21% month-on-month Supply surged to its strongest level in four years, with almost 45,000 new listings recorded in June, an 18% increase on May   Average weekly rent climbed 1%…
Read More