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Purplebricks to move away from rewarding LPEs for listings

CEO Vic Darvey says it previous strategy of chasing listings is to change as it looks for the best 'customer outcomes'.

Nigel Lewis

Purplebricks CEO Vic Darvey has made more candid comments about the company’s performance, revealing that he is planning to change the way it incentivises its LPEs as it ‘refocuses’ on the UK property market.

Darvey says the company has realised that incentivising its LPEs on listings rather than sales is not the way forward, as many in the industry have said in the past.

In an interview with the Daily Telegraph, he says the company is now looking how to incentivise LPEs “in a way that is in partnership with the desired customer outcome” but won’t reveal details about the change.

During the interview he also admits that the company ‘bit more off in the US and Australia than it could chew’ and consequently took its ‘eye off the ball’ in the UK.

His comments echo growing industry sentiment – and relief among many traditional agents – that Purplebricks is not as dynamic as it used to be.

Refocussing

But the lull may be short lived. Darvey says the company is now focussing on its ‘flagship’ market and reiterated comments made over the weekend that the company is not for sale.

He also claims, as his predecessors have done, that Purplebricks outperforms its nearest sales rival Countrywide, and that it sells over three quarters of all the homes it lists within a year.

His parting shot within the interview include a promise not deviate from the firm’s fixed-price pricing model, although he has previously said the company is looking at increasing how much it charges.

October 22, 2019

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