Strike CEO Sam Mitchell has faced down the firm’s critics within the industry and told The Neg that this year will be a big breakthrough following its recent decision to go national.

Mitchell and his agency are often drubbed within property forums and by agency commentators for undermining the value of traditional agents’ work.

But Mitchell, who worked at Foxtons, Your Move and Rightmove before joining what was then HouseSimple in 2018, says his firm’s financial model is working and that latest Zoopla data shows it is now No.2 brand in the UK for listings, and has 2% market share.

“If we were making a final throw of the dice then I doubt our backers would keep on doubling down on their investments as we gain market share and go into new areas,” he says.

“The model is working – there are no guarantees in life but Strike has got all the hallmarks of something that’s going to sneak up on people in the industry as our boards begin going up in their areas.”

Mitchell says his company now has 10% market share in half a dozen key markets and overall has 5% in the north of England. It is also set to handle mortgages for properties worth £2 billion this year.

Problematic

He also rejects the argument that ‘free’ is problematic for Strike. “There is a psychological power of ‘free’ which is important to understand,” he says.

“If you charge 99p or whatever for a service you are seen as cheap, but if it’s free you feel smart and clever for getting something without paying anything.

“But we’ll only win ultimately if we’re good at selling houses and for us it’s the word of mouth halo effect that people create ‘at the school gates’. That’s how you really win.”

Strike’s deal with musician Tinie Tempah (pictured) that has seen the rap star invest in the business has also borne its first fruit – Tempah posted his first Instagram about his enthusiasm for the agency’ ‘fees free’ model a few days ago to his 758,000 followers.

Read Mitchell’s full interview with The Neg in the next issue of our magazine in which he reveals his surprising views on traditional agents, more details about how the ‘referral fee’ model works and how he bagged Tinie Tempah.