Purplebricks to launch in New York in second quarter

Online estate agent Purplebricks has announced plans to launch into the New York market in the second quarter of this year.

The AIM-listed company said on Wednesday that it is already recruiting local real estate experts in the area and has established an office in Midtown Manhattan. It added that the US team, led by Eric Eckardt and Phil Felice, and supported by founders Michael and Kenny Bruce, have "considerable" local knowledge and expertise of the real estate market in the area.

Purplebricks, which is backed by fund manager Neil Woodford, launched in Los Angeles in September 2017 and expanded into San Diego, Sacramento and Fresno earlier this year.

Chief executive Michael Bruce said: "It is a sign of confidence in the potential of the US business that we are today announcing our expansion to cover both the East and West coast, with our planned entry into the New York market. With higher than average rates of commission and transaction volumes, New York was the natural first move on the East Coast for Purplebricks.

"Our local team have an in-depth understanding of the US market and considerable experience of New York specifically. Whilst early days in the US we are encouraged by the exceptional quality of the licensed real estate agents that we are able to recruit, which reinforces our belief that we will deliver a better service for our customers whilst saving them thousands of dollars and delivering attractive returns for our shareholders as the business continues to grow."

The company said the New York area is particularly suited to its proposition, with real estate commissions reaching as high as 7% and an average property sales price of around $561,000. Meanwhile, transaction volumes for homes priced around this level are double the national median.

At 1000 GMT, the shares were up 3.7% to 441p.