Purplebricks considers new price strategy

PURPLEBRICKS is mulling over changes to its pricing as the online estate agent switches gear following the “mistakes” of the past.

New chief executiveVic Darvey, who took up the post in May, announced the current flat fee model, which costs £1,399 in London or £899 elsewhere, could be replaced.

He said the uncertainty hanging over the property market as Brexit looms could make the change necessary if the rate of house sales slows.

“We’re going to start to look at how we evolve our pricing over time because our pricing has been pretty much the same for five years,” he said.

“With any successful business, you need to adapt and evolve your pricing strategy.”

Mr Darvey added: “In certain markets, in certain pockets of the country where houses aren’t moving quickly, there is a moment of hesitation from customers saying: ‘I know I can save £10,000 but actually do I want to commit to an £899 up-front fee when my house may not sell?’”

The Purplebricks announcement comes after the company said it would quit both the US and Australia earlier this year amid continued underperformance in the markets.