Purplebricks’ woes have continued this week after the estate agency’s share piece dropped by a further 20% during yesterday’s trading on the London Stock Exchange, to 25p a share.
This followed news that it had set aside between £2 million and £9 million to meet the potential costs of paying fines to thousands of its tenants whose deposit paperwork it is alleged the company has not managed properly in the past.
The hybrid agency was forced to comment after initially refusing to reveal the extent of its exposure to the IT glitch But after the Daily Telegraph published a story yesterday morning claiming it could face a bill of £30 million, the company was forced to reveal some details.
David Oliver, Head of Propertymark Compliance says: “It is important that any allegation made against an agent be substantiated with viable evidence. As a representative body we take any allegations against our members incredibly seriously and we will be investigating the claims of failure to properly register tenancy deposits by Purplebricks.
“Legal procedures exist to protect both agents and their clients. Performing them properly not only protects agencies but is paramount for consumer confidence, providing transparency between businesses and their customers.”