Purplebricks boss: Rental market is ‘completely broken’ and is a ‘disaster for first-time buyers’
The rental market is “completely broken” and is a “disaster for first-time buyers” unless they can rely on the bank of mum and dad, the chief executive of Purplebricks has said.
Sam Mitchell, speaking as part of the latest episode of City PM‘s interview series, Boardroom Uncovered, added that even that method of getting on the housing ladder is “becoming much harder”.
The CEO also revealed how he bought his first house after joining two friends in each getting £10,000 loans to buy cars and a three-bedroom house in London in their early 20s.
Mitchell added that the house, which he sold just before the 2008 financial crisis, is probably worth £1m now and that the idea of someone else doing that now is “for the birds”.
The Purplebricks CEO said: “It’s very clear that the rental market is completely broken, making it a complete disaster for first-time buyers unless you can rely on the bank of mum and dad which is obviously becoming much harder.”
He added: “If I rewind 20 years to when I was just starting out in the industry I went out with two friends and we all got £10,000 loans each and we would buy cars and we went and bought a three-bedroom house in London by Tower Bridge for £300,000.
“The thought that you could possibly do that now in your early 20s is for the birds. That house is probably worth £1m now.”
Also as part of the latest Boardroom Uncovered episode, the Purplebricks boss opened up about Strike, which he also leads, taking over the online estate agent for just £1 after it collapsed from once being worth £1bn.
He speaks about its journey to returning to profit, its expansion plans for the future as well as his top tips for buying and selling a house.
Boardroom Uncovered
Boardroom Uncovered is City PM’s flagship on-camera interview series which features the top bosses of the biggest and best-known companies operating in the UK.
Cutting through corporate speak and carefully prepared talking points, the series reveals the personalities of those who lead household names across the country.
Previous guests have included the UK CEO of IKEA, the boss of American Golf and Sir Tim Martin, the founder and chairman of pub giant, JD Wetherspoon.
Virgin Group‘s CEO, the co-founder of Bloom & Wild as well as the boss of Totally Wicked have also appeared on Boardroom Uncovered.