Purplebricks losing market share to Strike

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A 20% increase in Purplebricks’ pricing and the scrapping of its money back guarantee is thought to be behind a surge in listings on rival Strike.

The online agency announced earlier this year that its standard package was increasing from £999 to £1,199 with its pro package increasing from £1,399 to £1,599.

This higher priced ‘regions’ classic package increased from £1,499 to £1,999 and the higher-priced ‘regions’ pro package increased from £1,999 to £2,499.

Sam Mitchell, chief executive of Strike (main picture), says: “Since the start of the year we have listed 60% of Purplebricks volume but over the last two weeks it has been closer to 80%.

Purplebricks recently upped its fees by 20% and that will have disproportionately impacted on them. If you look at the heartlands and northern regions and when competing with no sale and no fee agents then it’s clearly a challenging proposition.”

“When you look at the [Zoopla] market share data it looks like we are ahead of Purplebricks in almost every region in the north last week. It looks like the purple wall is crumbling! We ranked first across Granada (including first in Manchester and second in Liverpool last week and second in Yorkshire (Purplebricks third in Granada and fifth in Yorkshire).”

PIVOTAL

Property pundit John Bodinham, who compiled the data, says: “This is a pivotal point and the first time that Strike has exceeded Bricks and is certainly a significant event for both companies.

“Strike has certainly increased its share in the North at Bricks expense and the fact that Bricks decided to increase its fees last month in some sort of desperate death roll is only going to make Strike appear more attractive to those vendors whose loyalties are dictated by the cost of fees.”

A Purplebricks spokesperson told The Neg: “We are pleased to see one of our hybrid peers doing well – it only goes to underpin the growing demand from sellers to move away from the huge cost of the high street agents. We’re absolutely focussed on implementing our own plans to improve performance and grow instructions and we’re confident of reclaiming our number one position.”


Go to Publisher: Proptech Archives – The Negotiator
Author: Robyn Hall