Woodford takes 30pc stake in online estate agent Purplebricks
Star fund manager Neil Woodford has taken a £7m stake in Purplebricks.com, an online estate agency, in his new fund’s biggest investment in a private firm to date.
Purplebricks, which was founded by brothers Michael and Kenny Bruce, aims to undercut agents’ sales commission with a fixed fee of £599 and offer a 24-hour service.
The firm says it plans to deliver “convenience, transparency, integrity, support and cost effectiveness.”
It said it planned to use the funds to expand its network of local brokers across England after launching in the south earlier this year.
“Purplebricks represents a highly disruptive business model in the world of estate agency,” said Woodford, who launched Woodford Investment Management in May.
“With the funding that it now has at its disposal, I see a significant opportunity for the business to lead the market in changing the way we buy and sell houses in the UK,” added Woodford.