Media reportage has gone into overdrive claiming that Purplebricks is planning of throwing in the towel for its lettings division and selling up.

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Speculation is growing that Purplebricks is preparing to offload its lettings business after allegedly putting thousands of landlords at risk of being fined for the company’s failure in following basic tenancy law.

Shares in the AIM-listed firm has plunged from 103p twelve months ago and now stands at only 23.4p because of its reported regulatory failures.

In December 2015 the company floated at 95p.

Reports and suggestions in the media are now coming to a head as Purplebricks may be finding ways to increase its share price by selling off the highly troubled lettings division.

The Telegraph has reported the firm’s chief executive, Vic Darvey and other  senior members of the team have been holding intense meetings and discussions on selling the division. Numerous sources close to the firm have told The Telegraph that it has now appointed a team of auditors to assess the business prior to any sale.

In December last year Purplebricks had to once again delay publishing its first half results because of any potential future claims which may rear ‘their head’, due to its ‘possible failure’ in carrying out correct regulatory processes required under the Housing Act.

This has all come to pass since the stories started circulated a couple of months ago that the online agents could be in deep trouble with having to face a bill as much as £30 million. It has been alleged that Purplebricks could put many thousands of landlords facing fines because the company failed to comply with basic tenancy regulations.

In November EYE reported that Purplebricks failure in correctly serving legally required documents to tenants stating where their deposits had been placed with any of the three government endorsed national protection schemes.

The company has owned up to its errors and believes it could face future claims against it of an estimated risk of £2m up to £9m.

Purplebricks recently stated that between May to October 31st last year had been a “challenging” time for the lettings division, and an industry body is currently investigating the firm for many potential tenancy law breaches.

A statement from David Oliver of the industry body holding the investigation, said: “It is important that any allegation made against an agent be substantiated with viable evidence.

“As a representative body we take any allegations against our members incredibly seriously and we will be investigating the claims of failure to properly register tenancy deposits by Purplebricks.

“Legal procedures exist to protect both agents and their clients. Performing them properly not only protects agencies but is paramount for consumer confidence, providing transparency between businesses and their customers.

“Agents fight against a stigma and ensuring processes are in keeping with legal and professional standards is a key part in changing our reputation.”