City analysts warn Rightmove fees investigation could hit share price
Experts say a probe into the pricing policies of the portal, as called for in an agent petition, could hit its share price.
City investment analysts are warning that any investigation into Rightmove’s fees could hit its share price.
Independent estate agent Shaun Adams set up a petition calling for an investigation by the Competition and Markets Authority (CMA) into the portal’s charging policies.
Adams, of agency Cooper Adams, has accused Rightmove of “bullying” and “daylight robbery” over its latest fee increase of 18%. And his petition has already collected more than 850 signatures in just a few days.
Pricing impact
Analysts at Citi Bank, who are telling shareholders in Rightmove to sell, warn that if a CMA probe is launched, the outcome could impact Rightmove’s pricing strategies.
Over 60% of the revenue growth to 2028 “is expected to be driven by pricing agents”, the company had flagged at its November 2023 investor presentation, Proactive Investor reports.
And although most experts advise holding Rightmove shares, Barclays’ expert Andrew Ross is also saying selling shares is the best policy currently.
Wits’ end
Meanwhile, Tracy Churchwood, MD at Churchwood Stanley, which operates in Essex and Suffolk, says she is at “her wits end” dealing with Rightmove.
They are the worst company I have ever had the misfortune of having to deal with.”
“I just wish all agents would cease using them for good – they are the worst company I have ever had the misfortune of having to deal with in all my working life both in corporate and financial markets before becoming an estate agent.”
Disgust
She says her firm cancelled its contract with the portal led by Johan Svanström (main picture) on 1 January and saved £2,600. But it was then forced to u-turn when some clients switched agents.
“Much to my disgust I caved in and agreed for our Sales Director to agree to a 6 month contract at basic level only then we were sent an invoice for over double that for Nov and Dec of last year which had already been paid,” she says.
Rightmove has not responded to a request for comment from The Neg.
Please join me to stop massive price rises. In my Facebook group rightmovefeefight there is news and a letter template to email to the CMA.
There business plan and model is simple, charge agents more with as little innovation as possible. If you look at the offering now compared to 10 years ago, what have they really changed or improved – Nothing. I urge all independent agents to join the campaign, write to the CMA and their local MP. Enough is enough.
It would be interesting to know how many of the people signing the petition backed and supported OnTheMarket (OTM) right at the start. Don’t forget this is exactly one of the reasons OnTheMarket was set up ie to stop Rightmove and Zoopla raising subscription fees with impunity. If those signing the petition now didn’t support or put their hands in their pockets when OnTheMarket was starting up, it’s a bit rich to moan that Rightmove have bent you over a barrel … and probably not for the first time.
I was with OnTheMarket from day one, however they have just never produced the number or quality of enquiries that Rightmove hase. Maybe with this latest investment they might but as with many independents there is only so much of one’s budget you can spend on portals and no point if they don’t work. That said Rightmove are robbers, I deal with a very limited number of houses and think I pay a huge premium with them to do so.
I find it strange how different areas seem to get different results. Eg we are based in South West Wales and honestly find we get more enquiries from OTM than we do from Rightmove. At the last count I think 28% of our enquiries came through OTM, about 23% came through Rightmove and Zoopla was a poor third with about 8%. The big difference in our area though, is that nearly all the agents pulled off Rightmove when OTM became active. Over the years some of us have rejoined (partly because Rightmove are experts at convincing people that agents need to be on it) but 2 of my biggest competitors aren’t even on Rightmove and with the new price hike, I’m tempted to join them and spend the money I’d save by scrapping my Rightmove subscription, on other marketing.
Totally back Shauns efforts, well done for trying
As you know I/we have been here before (Say No to Rightmove) and we got close….. and wiped £49m off their shares at one stage. Sadly no long term effect. but we got close. WE really need you all to support this sadly the number we needed to follow me was over 4000 to make them sit up. Good luck with your effort #saynotorightmove