In the wake of the latest headlines claiming Purplebricks has been sold for a mere £1 and is subject to shareholder approval, Newspage sought out the insights of industry experts on the matter.
Responding to the news was Rhys Schofield, Managing Director at Peake Mortgages and Protection. He remarked “It’s unsurprising Purplebricks is virtually extinct. When they first entered the property market, they promised a revolution. However, as most people have come to realise, the whole concept didn’t come through.”
Aside from the obvious drawbacks of an online estate agent, many feel cost presented an insurmountable barrier for the service. Andrew Martin, Partner at Nicholls & Co, a prominent legal firm in the area, offered his thoughts on the situation. He said “It became too expensive to maintain due to the fees coupled with the market catching up with their model. The fees were simply too expensive- customers would rather pay the extra money to get a more rounded service.”
As the dust settled and the property market mulled over the landmark sale, Adam Mace of Chamberlain Collins shared a different approach. He declared “The online revolution continues for the property market, and many businesses will remain alive due to this transformation- Purplebricks was just behind the times. It was a model that tried to fix something that didn’t need fixing. Ultimately, even had they flourished, they wouldn’t have set the world alight”.
Experts in the field agree that the days of traditional estate agents may be numbered, with more firms turning to online storage and property systems, and customer preference increasingly leaning towards an integrated and smooth process.
The trend has been gaining speed for years now, and the sale of Purplebricks to Strike only further accentuates the wave of technological change sweeping through the property sector. It just goes to show that even an established brand isn’t impervious to the digital revolution.
It’s clear for all to see- the traditional ways of marketing a property are being left behind. What wasn’t too far away just a few years ago – the typical estate agency – is slowly evaporating. Many estate agents have evolved to include online services, but are struggling to match the convenience and competitive prices that initially gave online agents the edge.
The sale of Purplebricks is certainly indicative of a paradigm shift in the property market, one that will further intensify as technology continues to drive the industry forwards. It won’t be long before the majority of people turn away from estate agents and look to the online world to buy and rent property.