City analysts at UBS have downgraded Zoopla to a 'neutral' recommendation from 'buy' citing that it remains threatened by OnTheMarket.
Against the trend of some recent developments, UBS says its ‘Evidence Lab’ research has revealed that OnTheMarket’s agency figures grew 6.8 per cent in recent months, ahead of Rightmove's 1.1 per cent and Zoopla's 0.7 per cent.
"We maintain our view that OTM is unlikely to be a major long-term player, but remain for [sic] the number two player Zoopla, which has been more impacted since OTM's launch" says UBS.
UBS says Rightmove's market leading position remains strong with agency growth, app statistics and recent report to the City supporting this view.
"Overall, we see the launch of OTM as having actually strengthened the position of Rightmove by making it a stronger number one in the segment, with Rightmove now having circa 65 per cent more properties listed for resale than Zoopla" says UBS.
UBS warns that Zoopla "continues to show no sign of a significant recovery in agents" - it says in the first quarter of 2016 Zoopla saw agent growth of 3.3 per cent compared to OTM's growth rate of 18.5 per cent.