Purplebricks has launched in London, ahead of a possible float in the second half of this year.
Chief executive Michael Bruce told the London Evening Standard that the firm is seeing growth of 25% a month, although firms such as LSL, Countrywide and Foxtons have all reported slides in sales.
He said: “I don’t think it’s just the election. We’re seeing growth, as a new brand offering something very, very different for a lot less money.”
The paper reports Purplebricks as charging a flat fee of £665 plus VAT – the firm does not display its prices inclusive of VAT – saying it claims this saves Londoners at least £6,000 compared with traditional estate agents.
The paper quotes Bruce: “It’s the greatest cost saving for people in and around the capital than anywhere else in the UK.”
On the Purplebricks website, it says that in certain London areas it charges £965 plus VAT “due to increased costs”. We entered a W1A postcode and found the higher cost applies there.
Bruce told the Standard: “It’s key to us to get positioned in London and get well known.
“If we can do that the way we think we can do it, in the second half of the year things like an IPO are a distinct option for us.
“If the market’s right and the Government’s right, I definitely wouldn’t rule it out.”
At the weekend, Purplebricks had 1,956 sales properties listed in total.