Purplebricks, the online estate agency, has been sold to a competitor for just £1 after its senior team surrendered. The company, which was founded in 2012, had become a major player in the UK property market but has now been taken over by Connells Group, a rival estate agency.
Purplebricks had been struggling for some time and had been forced to make a number of cost-cutting measures, including reducing staff numbers and closing offices. This had led to a significant drop in the company’s share price and it was unable to recover. As a result, the senior team decided to surrender the business and accept the offer from Connells Group.
The takeover has been seen as a major blow to the online estate agency sector, as Purplebricks had been seen as a pioneer in this area. It had been the first company to offer a low-cost, online-only service and had quickly become popular with customers. However, it had faced increasing competition from other online estate agents and had struggled to maintain its market share.
The takeover by Connells Group is likely to have major implications for the UK property market. The company is one of the largest estate agents in the country and is likely to use its new acquisition to expand its presence in the market. It is also likely to benefit from the technology and expertise that Purplebricks had developed over the years.
The sale of Purplebricks for just £1 has come as a shock to many in the industry and has raised questions about the future of online estate agents. While it is too early to say what the long-term implications of this takeover will be, it is clear that it will have a major impact on the UK property market.