Revenue up 7% as Rightmove squeezes more out of estate agents
Agent numbers may have remained broadly flat but the portal has still managed to extract more money from them as it boasts of ‘its proven ability to grow profits and cashflows in all market conditions’.
Rightmove’s year-end results reveal that despite achieving a modest 2% increase in the number of agents using the portal it has managed to return rising revenues, up by £25.6m (7%) to £389.9m while underlying operating profit increased by 4% to £273.9m.
And, with market conditions improving as the base rate fell, traffic was up too with 16.4 billion minutes spent on the platform (+6%).
Near monopoly
Rightmove claims that of all the leads delivered by portals in 2024, it was responsible for over 7 out of 10 vendor instructions and over 8 out of 10 lettings instructions.
This near monopoly of the market enabled it to extract more money from its customer base, with particular growth in its premium Optimiser Edge package, which now has 31% of independent agents subscribing to it, Lead Keys, its end-to-end digital rental service, which saw 500 new sign-ups and its mortgage services, which more than doubled its revenue to £4.7m.
Average revenue per advertiser (ARPA) was up £93 to £1,524 per month. Estate agency ARPA was up 6% to £1,440 and new homes developers’ ARPA increased by 9% to £1,987.
Revenue to grow further 8-10%
In the year ahead, Rightmove is planning on continuing to invest in innovation and AI and is expecting revenue growth to hit 8-10%. This is based on increased uptake of Optimiser Edge, further product-led growth across its core business and continued progress in its Commercial Property, Mortgages and Rental Services.
It is not, however expecting much growth in customer numbers at 1% but ARPA will be up by £95 – £105 across estate agencies and new homes developers.
There is, though, no mention of recent calls for an investigation by the Competition and Markets Authority (CMA) into its charging policies and Citi Bank is warning that if there is one, the outcome could impact Rightmove’s pricing strategies.
We delivered strong results, demonstrating yet again the resilience of Rightmove’s business model.”
Johan Svanstrom, Chief Executive Officer, said: “We delivered strong results, demonstrating yet again the resilience of Rightmove’s business model. Consumers visited the Rightmove platform 2.3 billion times in 2024, and with the UK’s largest selection of properties for sale and to rent they spent a combined 16.4 billion minutes searching and using our expanding set of valuable tools.
“We’re continuing to invest in technology and products to make the platform even more useful and effective for both partners and consumers. 24 AI-enabled teams of software engineers delivered over 5,000 releases, features and enhancements in 2024.
“We have a clear strategy to further digitise the home moving market, powered by the UK’s largest set of property data and insights. There is a long runway of opportunity to both broaden and deepen Rightmove’s services on one connected platform, and our team is continuing to drive that momentum in 2025.”
It is only the Agents who can change this by not using them and selling the alternative OTM and certainly don’t use any of their other services until they start to take note. Taking a stand should have been done with OTM and it is still not too late. OTM top package and their client service a qtr of the price. Use it or loose it what will happen next – between RM and Gov.uk we are being crucified and there will be no independents left. Only big corporates and that goes for every small business and the farmers, come on guys open your eyes before it is far too late, time is slipping away.
Rightmove has no regard for the estate agents who grew their business. They have a Ryanair attitude to their clients. We missed an opportunity with OTM when it launched. We should have been brave and just listed with the one portal. The good news is that within a couple of years AI will take over. I would not want to be holding any of their stock at that stage.
Rightmove’s latest financial results expose the harsh reality facing estate agents. Despite almost no growth in the number of agents using their platform, Rightmove has managed to squeeze an extra £25.6 million out of the industry, boasting a 7% rise in revenue to a staggering £389.9 million. How? By aggressively hiking fees on agents who feel trapped by Rightmove’s near-monopoly.
Just this week, an agent shared with me that Rightmove proposed a shocking 22% increase in their fees. This isn’t business; it’s exploitation. Rightmove’s dominance allows them to bully agents into paying more, knowing full well there are few viable alternatives. They proudly announce that they’re responsible for over 7 out of 10 vendor instructions and 8 out of 10 lettings instructions, leveraging this control to extract ever-growing profits.
What’s the cost to agents? Rightmove’s average revenue per advertiser has jumped by £93 to £1,524 per month, and they’re planning even more hikes in 2025. At 22% rises per year, fees will double in just three years.
This level of market control is nothing short of aggressive capitalism. Agents are being squeezed dry to feed Rightmove’s profits, with little regard for the challenges faced by those on the ground. It’s time the industry stood up to this unfair dominance. If we don’t challenge Rightmove’s stranglehold, agents will continue to face crippling fee increases while Rightmove’s profits soar.
Join me in the complaint to the Competition and Markets Authority (CMA) to end this assault on agents. Together, we can challenge Rightmove’s bullying tactics and fight for fairer fees.
Search for “Rightmove Fee Fight” on Facebook and join the movement.
More and more should quit the ruddy Optimizer packages and see their revenue take a hit. It truly is the ‘speedy boarding’ option whilst more and more agents take it. All good til you realise everyone else is taking up on it.