PHOTO: UK real estate company Purplebricks has announced it will quit the Australian housing after being met with touch challenges that led to a slump in its stock prices. 

Online real estate agent Purplebricks is quitting the Australian market, two and half years after entering it with a promise to shake things up.

The UK fixed-fee company also said founder Michael Bruce would step down as chief executive immediately and it would review its US business.

The company said it would remain committed to its current Australian customers but would not accept new business.

“During the two and a half years that Purplebricks has been operating in Australia, market conditions have become increasingly challenging,” the company said in a trading update.

“This, combined with some execution errors, has resulted in the business not delivering the progress the Board expected.

“With hindsight, our rate of geographic expansion was too rapid and as a result the quality of execution has suffered,” chairman Paul Pindar said, as he apologised to shareholders for disappointing performance over the last year.