{"id":35486,"date":"2021-11-05T18:03:21","date_gmt":"2021-11-05T05:03:21","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=35486"},"modified":"2021-11-05T18:03:21","modified_gmt":"2021-11-05T05:03:21","slug":"u-k-s-purplebricks-in-trouble","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/u-k-s-purplebricks-in-trouble\/","title":{"rendered":"U.K.\u2019s Purplebricks in trouble"},"content":{"rendered":"

PHOTO: Purplebricks<\/strong><\/p>\n

U.K. estate agent\u00a0Purplebricks<\/a> Group Plc\u00a0is heading for its biggest share drop on record after a profit warning that cast further doubt about its unusual business model.<\/p>\n

\"Purplebricks\"<\/a><\/div>\n
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\u201cCheap and nasty\u201d Purplebricks \u2013 why it didn\u2019t work down under<\/a><\/h2>\n<\/header>\n<\/div>\n

The Solihull, England-based company, which charges a flat fee whether a property is sold or not, fell as much as 38% after warning of a drop in business as a tax break for buyers came to an end.<\/p>\n

\u201cSupply in the market has fallen as we slowly adjust to a below normal level of activity following a period of successive lockdowns and the end of the stamp duty holiday,\u201d Chief Executive Officer Vic Darvey said in a statement.<\/p>\n

Analysts including Jefferies LLC had previously\u00a0raised concerns that the model may hurt the company more during a downturn than traditional estate agents that charge sales-based commissions.<\/p>\n

\"Purplebricks\"<\/a><\/div>\n
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INTERNATIONAL: Online estate agent Purplebricks left red faced as it pulls out of the US property market<\/a><\/h2>\n<\/header>\n<\/div>\n

New instructions in the six months through Oct. 31 fell 23% compared with the same period last year, Purplebricks said Thursday.<\/p>\n

READ MORE VIA BLOOMBERG<\/a><\/p>\n

https:\/\/www.instagram.com\/p\/CVydL1Phg3g\/?utm_source=ig_web_copy_link<\/p>\n

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