Estate agents are raising concerns about Rightmove’s „unsustainable“ fees, with some reporting that their costs have more than doubled in recent years. A class action lawsuit has been initiated by accountant Jeremy Newman, representing potentially hundreds of estate agents.
A letter of claim has been submitted to Rightmove, seeking nearly £1.5 billion in damages. The claim alleges that the online property portal has „abused a dominant position“ in the market.
In response, Rightmove has stated that the claim is „without merit“ and that it will defend itself vigorously. The company expressed confidence in the value it provides to both partners and consumers.
The lawsuit contends that Rightmove has imposed excessive and unfair subscription fees on thousands of estate agents and new home developers. The case has been filed in the Competition Appeal Tribunal.
Impact on Estate Agents
Newman claims that many estate agents are experiencing rising fees while receiving little change in the services offered. He noted that agents have been „squeezed“ by stagnant property prices over the past few years.
„Estate agents are having to employ fewer people because they can’t afford them alongside their fees to Rightmove,“ said Newman, a former member of the Competition and Markets Authority (CMA) panel. „As a result, their services can’t be as effective.“
Rightmove has consistently reported a profit margin of approximately 70%, positioning it as one of the most profitable companies in the FTSE 100. According to the company’s own consumer research, it commands an 80% share of time spent on property portals.
Newman clarified that the class action is not aimed at eliminating Rightmove, acknowledging its significant role in the property market. However, he emphasized that „Rightmove is exploiting a self-evident dominant market position and is charging too much for it.“
Rising Costs and Market Dynamics
Evidence reviewed from five estate agents indicates sharp increases in fees. Many agents report that while Rightmove is significantly more expensive than other platforms, it remains the primary source of their leads. Despite this, they struggle to absorb the rising costs, feeling they have little choice but to continue using the platform.
On its website, Rightmove asserts that it provides agents with „access and brand exposure to the UK’s largest and most engaged home-moving audience.“ A spokesperson for Rightmove stated, „As one of the most efficient parts of the UK housing market, we help people across the UK to move home by bringing buyers, sellers, renters, landlords, and agents together.“
The spokesperson added, „Our platform continues to provide a growing range of constantly evolving products and features which facilitate market transparency, liquidity, and confidence.“
Voices from the Industry
Alisa Zotimova, founder of AZ Real Estate, a bespoke property consultancy and estate agency based in London, reported that her fees have „more than doubled“ over the past seven years. She began with a promotional rate that later increased significantly, describing the rise as „unsustainable.“
„You don’t have to sign up, but it feels like I’m pushed into a bit of a corner with my customers expecting me to use it,“ Zotimova remarked. „If smaller agents cannot afford these sorts of fees, that would have knock-on effects for the housing market.“
She warned that higher fees could lead to fewer choices for buyers, sellers, tenants, and landlords if smaller agencies are unable to compete. Upon learning about the legal action, Zotimova decided to participate, stating, „It feels a bit David and Goliath; now it seems there is maybe a chance.“
Individual Experiences with Rightmove Fees
Chris, who operates two estate agencies in Northamptonshire, reported that he is charged over £5,000 monthly for a basic membership, which allows him to advertise 30-50 properties online. He noted that these fees equate to the salaries of two full-time employees each month.
„It’s a lot of money to find every single month,“ Chris said, adding that the costs ultimately get passed on to clients. „When you’re trying to run and operate a small business and a particular company has complete control of that business, it is a challenge.“
While Chris acknowledges that Rightmove is the „number one portal,“ he believes that costs should not be dictated by the company. „We just have to continue to cut back and make savings in other areas to facilitate the juggernaut that is Rightmove,“ he stated.
Mixed Opinions on Value
Andy Keogh, an estate agent in the Midlands, expressed a different perspective, believing that the platform offers „value for money.“ He noted that 80% of his leads come from Rightmove, which he described as having a „monopoly on the market.“
Starting in June, his fees will increase from £1,710 to £1,850 per month for up to 40 properties in sales and lettings. „If you don’t like it, don’t use them. Agents who are moaning would struggle with their business if they decided to come off it,“ Keogh remarked. He acknowledged that for lettings, Zoopla is significantly cheaper, charging between £450 and £500 monthly.
Bildquelle: Foto von Oliver Hale auf Unsplash
