Analysis shows investors' faith in Purplebricks post-Brexit

An analysis of estate agents quoted on the London Stock Exchange suggests that almost all the traditional firms have suffered since the EU Referendum while Purplebricks has bucked the trend and prospered. 

The analysis, by website sellingup.com, suggests that of the four agencies listed on a main FTSE index, only Savills has fully recovered from the bear market since the June 23 referendum. The others - Foxtons, LSL Property Services and Countrywide - “are in far less desirable neighbourhoods” according to the analysis.

Countrywide shares were priced at 351.9 on June 23; at close of business last week, they were priced at 175.25.

Foxtons shares were priced at 167 on June 23; at close of business last week they were 95.11.

LSL shares were 295 on Referendum day; by the end of last week they were down to 193.5.

Savills was an exception: it was 780.5 on June 23 but ended last Friday at 850.5. Sellingup puts this down to the diversity of the Savills offer - residential property is only a minority of its business activities, unlike the other agencies - as well as Savills’ investment in the YOPA online estate agency. “Clearly not having all your eggs in the British property basket is a strength in the post-referendum world” says Sellingup.

On the smaller ‘junior’ Alternative Investment Market, known as AIM, the traditional agencies Hunters, Winkworth and Martinco - soon likely to be renamed Property Franchise Group - are also performing less strongly than the other agency quoted on AIM, which is Purplebricks. 

Hunters share price on June 23 was 75 while by the end of last week this had gone down to 65.14. Winkworth’s share price had moved over the same period from 127.5 to 97.17; MartinCo dropped from 159.0 to 134.55.

As has been well documented, Purplebricks - also on AIM - has moved very significantly in the opposite direction. It was 142.5 on June 23 but ended last week, after announced its proposed expansion to the US following a £50m rights issue, at 264.0.

“It’s happy days for Purplebricks, who [sic] have bounced back from the property sector’s post-Brexit bear market in in spectacular style, and whose price currently sits more than double its level at AIM launch” says Sellingup.

You can see the analysis in full here.