Michael and Kenny Bruce have rejoined Purplebricks in a move that has prompted speculation about the future of TAUK, the self-employed estate agency model backed by Kenny Bruce.
The announcement marks a return for the brothers who originally founded Purplebricks in 2014. The company expanded internationally to Australia, Los Angeles, and Germany before encountering financial difficulties that led to its delisting from the stock exchange. Strike, owned by Charles Dunstone, acquired the business, with Dunstone reportedly investing approximately £50 million in the venture.
Industry implications
The Bruce brothers’ return raises questions about potential consolidation in the UK’s self-employed estate agency sector. Kenny Bruce is a major shareholder in TAUK, which he co-founded with Mark Bruce. The overlap in ownership has led to industry discussion about whether Purplebricks might absorb TAUK as part of its restructuring strategy.
The UK self-employed estate agency sector currently comprises approximately 2,000 agents, according to Adam Day, European expansion leader at eXp. Around half of these agents operate in partnership with eXp, whilst TAUK represents another segment of this market.
Historical context
Purplebricks spent approximately £150 million on marketing during its expansion phase before experiencing significant shareholder value losses. The company operated under several CEOs following the Bruce brothers’ initial departure, with each facing challenges in achieving profitability under the ‘commissary’ agent model.
The self-employed estate agency model has evolved from the earlier ‘online estate agency’ concept, which combined field agents with technology platforms. Fee structures and operational models have changed considerably since the sector’s emergence in the mid-2010s.
The restructured Purplebricks will need to demonstrate market traction and momentum to attract potential investors. Industry observers are monitoring whether the company will pursue a return to the London Stock Exchange following its delisting.
