PurpleBricks will substantially increase its prices in February 2023, according to a report by industry website Property Industry Eye.
It said it has received “credible information” that the struggling hybrid real estate agency will raise prices in the New Year.
It reports that a video call was made to all staff in the U.K. that from next February the price of its Classic and Pro packages will increase.
PurpleBricks already has different pricing tiers for different parts of the U.K., linked to selling prices which tend to be highest in London, higher in the south of England and lower in other parts of England, Wales and Scotland.
For higher tier parts of the country, which includes London and most of south-east England, the price f the Classic package will increase from £1,999 to £2,999. The Pro package, which includes viewings, will rise from £2,499 to £3,999. Lower tier pricing covers most of the rest of the country and will increase by a similar proportion.
If the new pricing structure goes ahead, it will mean PurpleBricks prices are similar to the charges high street estate agents make for a full-service, no-sale no-fee service.
It might now have to change the promise on the front page of its website, which reads, “Selling your lovely home? You’re in the right place. We could help you save thousands.”
As the U.K. is close to the start of an economic downturn and reduced demand for property, raising prices is likely to make it even more difficult for PurpleBricks agents to win new instructions and achieve sales.
PurpleBricks will announce its 2023 half-year results on December 9th. Its FY 2022 results showed a significant decline in revenue and made an EBITDA loss of £8.8 million, compared to a profit of £12 million in 2021.
On December 19th, the company holds a General Meeting to vote on a resolution to remove chair Paul Pindar. Pindar survived the company’s SGM in September without the position of chairman being put to a vote.
AIM Group has contacted PurpleBricks to confirm if the report is correct and to provide any details and will update this article when we receive a response.