Purplebricks to open new office in Soho after remote hiring spree

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Purplebricks will open a new office in Soho in response to pandemic-led changes that saw the online estate agent hire more people from across the country.

The new office, located in London’s West End, will eventually house between 40 and 50 staff who will work on a hybrid basis, spending some time at the office and some time working from home.

Purplebricks’ HQ is in Solihul, but CEO Vic Darvey told City PM the pandemic-led shift to online and remote working had enabled the estate agent to hire from other places around the country.

“We’ve been working remotely and we’ve been hiring remotely,” he said. “We’ve thrown the net a lot wider, and so we’ve invested in a London office.”

Purplebricks has reaped the rewards of the housing boom, which was fuelled largely by the stamp duty holiday.

The group’s revenue lifted 13 per cent from £80.5m to £90.9m in the year to 30 April, while gross profit climbed 12 per cent to £57.7m.

The online company swung from a £5.7m operating profit loss in its previous financial year, securing an £8.2m profit this year.

Despite moving physically into London, Purplebricks has recorded something of a London exodus, with Londoners leaving the capital making up around eight per cent of all homes it sold this year.

Darvey said the shift to hybrid or even total remote working had left people willing to move miles away from the capital. Nevertheless, he said people would return to London.

After opening lower this morning, Purplebricks’ shares were up 0.9 per cent at 86p per share this afternoon.

The estate agency is due to launch a money-back guarantee this month, which will make the group well placed to see its 10 per cent market share swell over the next financial year, its boss said.

“The group has responded to a changing market and we are delighted to offer customers an option of reimbursement of their upfront fee payment if they do not sell their home,” CEO Darvey said in a statement.

“With a simplified proposition and our new pricing structure in place, I am confident that Purplebricks is well placed to gain market share and to accelerate revenue growth and drive progress towards our medium-term targets.”

Purplebricks sold its Canadian business which has bolstered its cash funds to £74.0m.