Purplebricks to set aside up to £9m to cover lettings errors
Online estate agency Purplebricks will be forced to set aside as much as £9m after it found that its lettings business had failed to follow law protecting tenants’ deposits.
The company on Monday said it would delay publication of its results for the six months to 31 October, which were due on Tuesday, in order to work out how much the error would cost.
Purplebricks’s share price slumped by 20% on Monday morning to reach a new all-time low of 25p after it revealed the error.
The company described the problem as a “process issue in how it has been communicating with tenants on behalf of its landlords in relation to deposit registrations”, in a statement to the stock market.
Purplebricks, which is listed on London’s Alternative Investment Market,
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