JOHN COLLINGRIDGE: INSIDE THE CITY

Estate agent’s purple haze

Purplebricks claims to save vendors thousands by eschewing commission
Purplebricks claims to save vendors thousands by eschewing commission
ALAMY

Estate agents’ patter typically deserves a sceptical ear.

The online estate agency Purplebricks has taken off like a rocket this year, boosted by expansion into Australia and America. Since floating at 100p in 2015, its shares have soared to 444p, making it worth £1.2bn — remarkable given that it has never made a penny of profit.

Founded in 2012 by brothers Michael and Kenny Bruce, it has prominent backing: Neil Woodford owns 27%. Purplebricks claims to save vendors thousands of pounds by eschewing commission, instead charging a set fee — £1,199 in London, £849 elsewhere — whether the property sells or not.

Like all estate agents, you have to take some things on trust, particularly when it refuses to say how many homes it actually