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Tuesday’s results will be D-Day for OTM, claims City analyst

Shore Capital says agent conversion rate will be a key test for the company when it publishes its half-year results.

Nigel Lewis

otm

A leading City investment analyst has claimed that property portal OnTheMarket (OTM) must be judged on how many of its freebie agents it has converted to paid listings when it releases its crucial half-year results on Tuesday.

Independent investment firm Shore Capital says these results will be important because they will reveal if OTM has been able to capitalise on many estate agent’s unhappiness over Rightmove’s behaviour during Covid including the multiple and high profile campaigns that have attempted to persuade agents to ‘say no to Rightmove’.

“We believe this dynamic could accelerate the group’s already attractive medium term growth potential – with its increasingly compelling and comprehensive offering, commitment to fair pricing and unique ability to offer equity to listing agents all positive contributory factors,” a report published by Shore Capital says.

Catalyst for agents

“We suspect that COVID-19 will have been a catalyst for agents to review their portal choices and the value that these deliver.”

The results will also be the swansong for Clive Beattie (main pic) who has been acting CEO of OTM since its founder Ian Springett unexpectedly left the portal in March.

He is due to make way for the new CEO Jason Tebb who is to start the job in December after working his notice as Group CEO at property firm Ultimate Holdings, making him the first major portal to be led by a former estate agent. Beattie is expected to return to focussing on his previous of CFO at the portal once Tebb arrives.

October 12, 2020

3 comments

  1. And there you have it – the Cambell – the mis-connect between what agents and many portals think buyers want, and what buyers need. As long as there is a top down view of what is best for the property buyer – as agents know best, little collaboration or change takes place.

    From my limited 32-years of being a front line agent, every agent takes the view that their strategy is best, and who they list inventory with is best. Maybe some people would do well to ask what the consumer would like, for example is disadvantaging a buyer, by only letting them see part of the market, good customer service, I think OTM strategy maybe needs a more customer centric journey.

    If every property consumer used OTM, then ‘holding back’ inventory and keeping off the main two portals would be of use, but as they are third in line; as things stand there is an argument that blinding buyers to suitable property serves none of the stakeholders.

  2. OnTheMarket and I stand to be corrected is unique as it shows property 24 hours prior to other portals? As a property hunter at present I must confess I have yet to stumble upon this portal and since its inception I have been at a loss as to its value. Hopefully, with Jason Tebb on board as CEO, he might take a look at the vast vista of new services and applications that other property platforms and portals are offering, and ask if OTM needs to develop its offering.

    Also, it would be sensible for OTM to look at the direction of travel, both of consumer taste and real estate in general, as things are moving swiftly and increasingly portals such as Rightmove are showing their age as they fail to re-invent themselves for the needs of 2020 real estate.

    • Wow. You are a “property hunter” and the CEO of Proptech and you are “yet to stumble upon this portal?” Really? I can only speak for my own company but our system allows us us to upload to OTM up to 1 MONTH earlier than other portals. We usually delay uploads to other portals by 5 days (because we want to support OTM) and often find a sale is agreed before Rightmove or Zoopla are even showing it.

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