Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Woodford buys 30% stake in ‘disruptive’ online estate agency

Woodford buys 30% stake in ‘disruptive’ online estate agency

Neil Woodford has bought a major stake in Purplebricks.com, a firm which aims to shake up the estate agency industry.

Woodford has bought a £30% stake in the firm, the equivalent of a £7 million investment, representing his UK equity income fund’s biggest investment in a private firm to date.

Purplebricks, which launched in April and offers a 24-hour service, levies a fixed fee of £599 for customers selling their homes. This significantly undercuts the average high street agency commission of 1.8%, resulting in an average charge of around £5,600.

Customers selling their homes through Purplebricks will pay a fixed fee of £599, undercutting the average High Street estate agency’s sales commission of 1.8%, which results in an average charge of more than £5,600, saving customers 84.5% in fees.

Meanwhile property owners looking to rent their home will pay a single fee of £199.

‘Purplebricks represents a highly disruptive business model in the world of estate agency,’ said Woodford (pictured).

‘With the funding that it now has at its disposal, I see a significant opportunity for the business to lead the market in changing the way we buy and sell houses in the UK.’

Purplebricks was founded by brothers Michael and Kenny Bruce.

While it is not officially rolling out until September it was aiming to list around 15,000 sales instructions by the end of July.

For financial year ending 31 July 2015 it is targeting 85,413 instructions and the following year 100,849, representing 10% of all sales.

Other investors attracted to the firm include former Capita chief executive Paul Pindar, who made a ‘significant’ investment in the firm a month before its launch.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Thomas Miller explains its post-restructure plans

Profile: Thomas Miller explains its post-restructure plans

Thomas Miller Investment’s (TMI) head of wealth Matt Phillips has strong opinions about many things

Wealth Manager on Twitter