Troubled online agents Purplebricks, which was worth £1.4bn at the height of its success, has been bought out by its rival for just £1.

Fellow property portal Strike has bought Purplebricks by assuming “substantially all” of the company’s debts for a token consideration of £1. 

Purplebricks will retain a maximum of £5.5m of its cash reserves after the deal completes, with the proceeds to be returned to shareholders.

The rescue deal comes after Purplebricks shares hit a record low of 1p last week, when it revealed that Strike had pulled out of a formal sale process.