The founders of Purplebricks are set to return to the business in a surprise comeback and more than five years after stepping away from the company they built into one of the UK’s most prominent online estate agency brands.
According to Mark Kleinman, writing for Sky News, brothers Michael Bruce and Kenny Bruce have struck a deal with telecoms entrepreneur Sir Charles Dunstone that will see them take a significant minority stake in the company.
The agreement has been reached with Dunstone’s investment vehicle Freston Ventures, which owns the online agency platform.
Under the deal, Michael Bruce will return as chief executive, while Kenny Bruce will share responsibility for steering the business back towards sustainable long-term growth.
MARKET DISRUPTOR
Purplebricks launched in 2014 with a model designed to challenge traditional estate agency commission structures by offering homeowners a fixed-fee service.
The business floated on the London Stock Exchange the following year and at one point accounted for roughly 10% of residential property sales in Britain.
However, investor concerns about its international expansion into markets including the United States and Australia prompted Michael Bruce’s departure as chief executive in 2019.
BRAND AWARENESS
Financial performance subsequently deteriorated, leading to the company being sold for £1 in 2023 to Strike, an online agency backed by Dunstone.
Strike’s operations have since been rebranded under the Purplebricks name, reflecting the continued strength of the brand in the UK property market.
Following their exit, the Bruce brothers launched the property portal Boomin as a challenger to Rightmove, although Boomin was liquidated in 2022.
In a statement issued to Sky News last night Michael Bruce (main picture, inset) said: “My brother and I are delighted to return home to the business we founded and are excited to work with Sir Charles Dunstone and the Purplebricks team to drive success and build market share in the UK housing market.
“We will work tirelessly to deliver an exceptional service for every homeowner whilst leading the business through its next phase of growth.”
PERSONALISED PROCESS
Mortgage Soup reported in October how Purplebricks Mortgages had partnered with technology firm JammJar to overhaul its customer service systems and deliver a more efficient and personalised mortgage process.
The collaboration will see advisers and administrators at Purplebricks Mortgages adopt JammJar’s AI-driven platform, designed to automate routine administration, manage compliance requirements and support clear communication throughout the mortgage journey.
