Rightmove has admitted to shareholders that it’s to lose 8% of its lettings listing from next month - the equivalent of some 700 branches.
It has failed to reach agreement over fees with the online platform OpenRent.
A statement issued to the London Stock Exchange says: “OpenRent is classified as an online lettings agent within Rightmove's Estate Agency (Lettings) sub-segment and represents approximately 700 branch equivalents, with less than 8% of Rightmove's lettings listings in July 2024.
“As has been seen recently, market dynamics - within lettings in particular - are fluid. While we remain confident of delivering revenue and margin in line with the guidance … the precise mix of membership and Average Revenue Per Advertiser may vary. Our current estimate is that membership will decline by up to 3% year-on-year, with a year-on-year increase in ARPA of £90-£100.”
Rightmove tells shareholders in the same statement that its contract with OpenRent will terminate with effect from September 1.
In a bid to deter criticism from those with a stake in the portal, it says it anticipates overall revenue growth of 7% to 9% and an underlying operating margin of 70%.
In a swipe at its former customer, Rightmove continues: “OpenRent's landlord customers will therefore lose access to the UK's largest property-seeking audience. Rightmove remains the place for consumers to find more UK properties than any other portal, and in H1 2024, delivered 8 times the number of properties rented than the next largest portal. Over 80% of all consumer time spent on property portals continues to be spent on Rightmove.”
A brief statement to the London Stock Market this evening has...
The chief of what is described as Britain’s largest lettings agency...
Online agency OpenRent has secured a £4.4 million investment to help...
OpenRent, set up in 2012 and more recently the recipient of...
The predictions game can be tricky. Sometimes you just don’t know...
Leading UK property auctioneer Bond Wolfe has broken through the £100...
Uncertainty triggered by the new Labour Government and taxation concerns that...
B-hive Block Management Partners Celebrates Major Milestone With Over 100 Businesses...
We’re absolutely delighted to announce that, after 10 years, we’re able...
You don’t have to simply accept things as they are when...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
Attention estate agents: if you're looking for a bumper Christmas bonus,...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
.png)
I think we can all agree that the National Trading Standards...
.png)
In September last year, flatfair, a deposit alternative provider, released their...
Introduction The lettings market is no stranger to the complexities and challenges...
%20(002).jpg)
Interim inspections are a necessity if you want to avoid property...
Who are you and what does it say on...
Who are you and what does it say on...
Who are you and what does it say on...
Join the conversation
Jump to latest comment and add your reply
All eyes on OpenRent, I can't believe they'd let this happen without a solid backup plan in place.
OTM, OpenRent, what is next to give agents more hope of an exit or negotiating a lower fee?
OpenRent leaving!.....good. Should never have been allowed to list on rightmove anyway.
Back door private advertising .....period!
I have no issue with Landlords seeking to lower their outgoings or indeed handle everything themselves. But rightmove enabling them to display their properties (extremely amateurly in the majority) never sat right with me.
No genuine letting agent can offer any level of service for £50.
I used open rent, they were fantastic, tenant within 3 days, no hassle and not ripped off
No. you were fantastic, where you were able use their platform to display your property on rightmove. Please don't insult my intelligence in trying to tell me their was any other input from OpenRent for a one off fee of £50 or whatever they charge these days.
I am sure there are agents that "rip people off" as you eluded to. But please do not tar all with the same sweep of your brush.
They have a market share equivalent of 700 branches at say £1,500 per branch, they must be paying Rightmove circ. a million pound per month. Ouch.
The contract ends September, one side will buckle / negotiate by then.
Agents are setting themselves up for a fall. By paying Rightmove, they are inadvertently helping to promote a platform for consumers, landlords, and private sellers using the agents' own stock. I've heard that Rightmove is preparing to offer services similar to OpenRent for private landlords. They already offer referencing services and are moving step by step towards independence. Once agents realise they don't need Rightmove anymore and leave, Rightmove will have become their main competitor. It seems likely that they will eventually become an online sales agent for private properties, much like Autotrader is for car sales, all with the support of the current paying agents. Who are these fools? Well done, OpenRent.
The smaller letting agents with 5-10 listings per month were also using open rent at £29 per listing (now £49) rather than £1,500 per branch, per month, to Rightmove.
Define "smaller agents"? We manage over 450 rentals and list fewer than 10 per month, never using Rightmove for lettings. If what you're saying is true, then it was a smart decision for Rightmove to let OpenRent go, ensuring agents must list directly with Rightmove.
Not something I have been offered? I have approached rightmove on several occasions to appeal for a representative fee, where I have been told they do not offer such! Am I being lied to? or is due to me also selling the odd home too. And I do mean the odd one here & there.
So 10 listings on open rent = £290pcm it was a good saving. Although, now it’s £490.
Oh I see. I misunderstood, where this is agents using OpenRent to display their listings on rightmove. Do/did rightmove know this?
Rightmove effectively make this not financially viable if you also sell properties, as Lettings is charged as a bolt on service, where the cost is minimal.
Ive never used Rightmove for rental listings only Zoopla, never caused me an issue. For sales you need Rightmove but for rentals they don't warrant the extra charge in my view.
Please login to comment