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TODAY'S OTHER NEWS

Rightmove loses agents as latest figures show huge rise in fees and profits

Rightmove has released another stonking set of results - but there are signs that some agents are defecting from the ever-more-expensive portal.

Figures released to shareholders this morning relating to the full year of 2019 show revenue, underlying profit and operating profit all up eight per cent - and earnings per share up no less than 10 per cent.

The key Average Revenue Per Advertiser or ARPA - how much each branch or developer pays per month - is up £83 to £1,088.

However for the first time there is a drop in membership numbers over the year.

There’s been a three per cent fall from 20,454 in December 2018 to 19,809 a few weeks ago at the end of 2019.

The breakdown shows that the portal listed 16,347 estate agency branches last year, down from 17,328 in 2018; developer numbers rose from 3,126 in 2018 to 3,462 last year.

Rightmove tells shareholders this is “reflecting a decline in mainly low-stock agency branches offset by strong growth in New Homes development numbers.”

In a statement accompanying the figures, chief executive Peter Brooks-Johnson says: “Rightmove is synonymous with home moving, with 2019 being the ninth year in a row more people searched on Google for Rightmove than for property.

“We continue to innovate, not only for home hunters, but also to help property professionals become more efficient and more resilient to a rapidly changing environment.

“Our culture of restlessness has led to the development of a number of innovative solutions which allow our professional customers to market to by far the largest audience in the UK.

“January 2020 was our busiest month ever with more than 152m visits and that trend has continued as we’ve recorded our five busiest days ever in February.

“I’m pleased that many of our customers who are seeing opportunity are choosing to invest in our digital solutions to grow their businesses.

“By working with our customers, 2019 has yet again demonstrated that Rightmove is a business which can continue to grow in uncertain times.”

In a section of this morning's report, issued on the London Stock Exchange RNS system, it says of agents:

"Winning the right to an instruction to sell or let a property is critical to an agent's success. 

"Our premium packages, Enhanced and Optimiser, help our customers to generate more opportunities to win instructions cost effectively. The packages include branding and property promotion solutions to boost agents' performance in the 'awareness' stage of the marketing funnel, while our popular Local Valuation Alert and Rightmove Discover products fast-track agents to the 'consideration' stage. 

"We continue to enhance the performance of these products to keep them at the forefront of digital marketing for our customers. Following a number of enhancements, Local Valuation Alert and Rightmove Discover delivered over 20 per cent more leads from people asking for a valuation on their home in 2019 over last year.

"Against the backdrop of a cautious housing marketplace estate agents continue to recognise the value of our additional marketing products and packages with penetration of the Enhanced and Optimiser packages reaching 38 per cent of independent estate agency customers up from 27 per cent in December 2018."

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    The last time people were held to ransom like this was protection money back in the 50's. The funny thing is, Vendors ask "are you on Rightmove" - This means they didn't get you from Rightmove in the first place !!

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    Yes good points. The funny thing is that the monopolies commission appears to be protecting Rightmove, threatening agents against dropping RM en-masse, saying they would be acting as cartels. They are refusing to acknowledge that Rightmove is acting as a monopoly itself, taking huge advantage of its dominant position, and that customers would benefit by agents reducing their advertsing overheads.

     
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    'We continue to innovate' - imagine being this out of touch with the business you're running.

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    Its just a shame that they are four times the price of Zoopla & On The Market !!

     
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    Far from 'stinking'! Stonking perhaps?

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    They are and continue to be an effective monopoly and take full advantage of this fact. They increase their fees with impunity and without any regard for the market conditions.

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    Encouraging to hear that there are agents out there that are willing to stand up and say 'no more!' - I only wish as a small business operator myself, I had the n**s to do that myself! I feel totally held to ransom as cannot leave Rightmove! I wish I could get together with my local competitors and all agree to pull away.... Save ourselves £££'s!!! As Mitchell says, four times the price of Zoopla and OnTheMarket....!!? How is that correct? Greed more like, plain and simple..... Signed, a very annoyed small independent agent....

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    Yes we've given notice, leaving next month. As a small agency we are simply not willing to spend £1700 on Rightmove a month on one portal when we are getting just as many enquiries, if not more, from Zoopla and OTM combined.

     
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    This trend it growing. Left Rightmove last year, this has not effect business in the slightest. Still get listings and sales. In fact the business is in such a better position.

    I would recommend anyone do the same, I hate bullies.

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    That's very handy to know Stuart and Debbie, and encouraging!

    The real issue we have is not with continuing to get leads and selling and letting property, that bit we are confident of as Zoopla, OnTheMarket, etc are doing just as good a job as Rightmove. The issue we have is our competitors using the fact that we are not on Rightmove against us, therefore losing out on the chance of an instruction before we've even had a chance. This is why I said that if a collective or a number of agents in an area pulled the plug from Rightmove, the better off we'd all be.

    It's a tricky one, but massively encouraging to hear your sides of things as I really thought Rightmove had 'us all' over a barrel.....

     
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    Squeeze that lemon Rightmove-harder-harder-harder

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    I hear PCL agents are planning their escape...

  • Kristjan Byfield

    £289.3m turnover- operating profit £213.7m. Nearly 74% profit.

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    it is complete madness I had a high street branch and the rightmove bill was the same as my lister. if other agents did not use it as a tool to beat up the smaller agents in the area "but they are not on rightmove" maybe it would not be as crucial. Far more PLC than TLC, remember rightmove would be nothing without agents

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    Well said, couldn't agree more!

     
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    ninth year in a row more people searched on Google for Rightmove than for property.

    “We continue to innovate, not only for home hunters, but also to help property professionals become more efficient and more resilient to a rapidly changing environment.

    Do they actually believe this SH--

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    FFS, these arguments have been had since RM were the dominant platform, and they'll never go away.

    If you don't think RM is decent value (probably not!) just leave. Simples. As has been pointed out OTM and Zoopla are a lot less. It should be easy to convince sellers that RM is not essential, and all costs have to be passed on to the consumer. ½% on their commission should put 'em off!

  • Marcus Parkinson

    6% Loss of Estate Agents - Using there figure of £1083 per branch per month. The remaining agents will have to pay nearly £70 per month next year just for Rightmove to stand still. If you factor in the chances are that
    - The figure of £1083 is much lower than what most independents are paying.
    - Rightmove always wants growth in their turnover.
    - More Branches are leaving every month
    I wouldn't be surprised if your increases this year are way over £100 per month this year.
    We left a year ago and its the best decision we ever made, it amuses me that agents know they are about to be hit again and do nothing. Another year of exodus and price rises and the trickle will soon become a torrent me thinks.

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