Rightmove confirms it has parted ways with OpenRent
The UK's largest lettings agency, OpenRent, which until now represented 8% of all Rightmove's rental property listings, will leave the portal after negotiations over pricing broke down.
The Neg’s story last week that Rightmove and OpenRent have parted ways has been confirmed by the portal this morning.
Rightmove has terminated its agreement with OpenRent with effect from 1st September 2024 after negotiations between the two organisations broke down over pricing.
It was clear that relations between the two companies had become frosty after OpenRent removed Rightmove from its website three weeks ago.
“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,” the portal says.
Fluid
“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 above, the precise mix of membership and ARPA 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.”
OpenRent’s business model will now be under pressure – it’s main shtick for member landlords is that they access the same marketing options as letting agents and Rightmove has plunged the knife in, saying: “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
Rightmove reiterates its full year 2024 revenue and margin guidance. We continue to anticipate revenue growth of 7-9% and an underlying operating margin of 70%, when excluding the one-off acquisition costs and Coadjute investment. These are both in line with market expectations.”
Read our story last week about the negotiations.
Rightmove have cornered the market and overcharged agents for far too long. I came away from using Rightmove a few years ago due to it being prohibitive. Letting agents do not need Rightmove to market their properties in my opinion.