The Daily Telegraph is reporting that Purplebricks could face a bill of as much as £30m “after it put thousands of landlords at risk of being fined.” 

Purplebricks disputes the figure, saying it’s more likely to be a maximum of £9m.

The newspaper says: “It is understood that since the online estate agent was founded in 2012, it has failed to properly serve legally required documents to tenants explaining their deposits have been put into a national protection scheme.

“These documents, known as prescribed information, must be given to tenants within 30 days of the deposit being paid. Failure to do this means the tenant can claim back up to three times the value of the money.

“Tenants have a six-year limitation period in which to make a claim against either the agent or their landlord. A source with knowledge of the business said Purplebricks’ historic liabilities could be as high as £30m, assuming everyone eligible to make a claim did so.

“It comes as Purplebricks fights to recover from a steep fall in its share price, which has dropped 70pc since the start of the year. The company – which currently has a market value of about £97m – warned last month that profits would suffer because of a fall in homeowners instructing it to sell their properties. It currently manages approximately 6,000 tenancies.”

You can see the full story – including quotes from a legal firm representing claimants, and a response from Purplebricks itself – here.