CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Purplebricks (​​PURP) stock plunges on rental business issue

By Jenni Reid

11:56, 13 December 2021

Purplebricks letting and sales signs
Purplebricks said Monday it may have to pay out millions over breaches of the Housing Act – Photo: Britpix / Alamy Stock Photo

Purplebricks (PURP) stock fell more than 20% on the London Stock Exchange on Monday morning as the online estate agent revealed it could face a multi-million pound bill due to errors in its lettings business.  

PURP stock was down 20.06% to 25.26p at 11:30 GMT, taking the price down 75.52% in the year to date.  

Deposit issue

The company said that during an internal review it had found an issue in its communications with tenants on behalf of landlords over deposit registrations. 

Tenants must be told their deposits will be placed in a national deposit scheme within 30 days of payment.  

This could leave the company open to claims under the Housing Act, which it estimated could cost it anywhere between £2m and £9m. 


0.67 Price
+1.060% 1D Chg, %
Long position overnight fee -0.0073%
Short position overnight fee -0.0009%
Overnight fee time 22:00 (UTC)
Spread 0.00040


1.27 Price
+0.640% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 22:00 (UTC)
Spread 0.00170


0.67 Price
+1.060% 1D Chg, %
Long position overnight fee -0.0073%
Short position overnight fee -0.0009%
Overnight fee time 22:00 (UTC)
Spread 0.00040


146.85 Price
-0.960% 1D Chg, %
Long position overnight fee 0.0113%
Short position overnight fee -0.0195%
Overnight fee time 22:00 (UTC)
Spread 0.090

Results delayed 

Purplebricks, which also facilitates house sales and is listed on London’s junior AIM market, said it was finalising the level of provision required along with associated disclosures.  

As a result it will delay its half-year results, which were due out tomorrow. 

 In April it reported £90.9m in revenue and £8.2m in operating profit, up from a £5.7m loss in 2020.  

Current analyst consensus forecasts £78.3m revenue and a £5.9m loss in the full-year to 30 April 2022.

Read more: Purplebricks moves to fully employed model for agents

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading