Purplebricks Group PLC Proposed changes to tenant fees (0018Q)
24 November 2016 - 6:01PM
UK Regulatory
TIDMPURP
RNS Number : 0018Q
Purplebricks Group PLC
24 November 2016
24 November 2016
Purplebricks Group plc
Proposed changes to tenant fees
Purplebricks Group plc ('Purplebricks' or 'the Company') - the
leading hybrid estate agency providing a new way to sell, buy or
let property - confirms that it does not expect the proposed
abolition of tenant fees for letting, as set-out in the Autumn
Statement of 23 November, will have any meaningful impact on the
business.
Tenant fees charged by Purplebricks are modest and highly
competitive, when benchmarked against peers. Up-front fees for
tenants are currently GBP175 (inc VAT) outside London and GBP209
(inc VAT) in London. Purplebricks does not charge renewal fees.
Purplebricks anticipates that it can adapt the model swiftly and at
minimal cost and when combined with its low fixed overhead model
and pricing structure, should prove even more attractive for
landlords seeking excellent service and better value.
Purplebricks will provide more detail at its Interim Results on
5 December.
Commenting on the announcement, Michael Bruce, CEO stated:
"Purplebricks was built on the ethos of putting the customer
first and delivering, through the combination of people and
technology, a superior service for less. The proposed changes to
tenant fees represent a significant opportunity to further
highlight to landlords the value that Purplebricks is already
renowned for offering sellers."
Enquiries:
Purplebricks +44 (0) 20 7457 2020
Michael Bruce, Neil
Cartwright
Zeus Capital +44 (0) 20 3829 5000
Nicholas How, Ben Robertson,
Mike Cuthbert
Peel Hunt +44 (0) 20 7418 8900
Dan Webster, Adrian
Trimmings and George
Sellar
Instinctif Partners +44 (0) 20 7457 2020
David Simonson, Mark
Reed, George Yeomans
Notes to Editors
Purplebricks is the leading next generation estate agency in the
UK, combining highly experienced and professional Local Property
Experts and an innovative use of technology to help make the
process of selling, buying or letting so much more convenient,
transparent and cost effective. Purplebricks is transforming the
way people perceive estate agents and estate agency.
Unlike traditional agents, where customers only pay upon the
sale of the property, which effectively means that those that do
sell pay more in order to cover the costs of those that do not
sell, Purplebricks believes it is more equitable that everyone
should pay, charging a flat fee at instruction. This helps to avoid
the industry issue of timewasters and those that are merely
'testing the water' and underpins the low, flat fee model.
Customers can chose to pay at instruction or defer, at no extra
cost, to the earlier of ten months from the date of instruction or
the date of sale. If a customer wishes to defer payment, they are
required to use Purplebricks' conveyancing services for the
sale.
Purplebricks charges GBP849 (inc.VAT) for a sale anywhere in the
UK other than in London where there is a charge of GBP1,198 (inc.
VAT). There are additional charges if the customer wants
Purplebricks to undertake the viewings on their behalf, if they
require an energy performance certificate or a Rightmove premium
display, amongst other services that are available.
The business model is low cost, flexible and cash generative,
without the need for an expensive leased estate. LPEs are
self-employed and receive a flat fee per instruction and can earn
additional fees from the sale of ancillary services including but
not limited to conveyancing, mortgage referrals and insurance.
Purplebricks launched in Australia in August 2016, a GBP3.3bn
market, with an initial focus on Melbourne and Brisbane, before
rolling out its offering to Sydney, Perth and Adelaide later this
year. The Group intends to invest GBP10m in the Australian business
over the next two years which will be funded from existing cash
resources.
Purplebricks listed on the Alternative Investment Market (AIM)
in December 2015, raising GBP25.0m of growth capital before listing
costs at 100p per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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