Rightmove has told analysts that it is confident it can charge agents an extra £60 to £70 per office per month, next year.
At a City briefing following its half-year results yesterday, Rightmove management are said to have struck a confident tone, saying that such ARPA (advertising rate per agent) was achievable except in the scenario of a “sharp step down in transactions”.
However, Rightmove market data so far suggested a broadly resilient property market since the Brexit vote, and less weak than had been feared. Leads to agents are currently down 16% year on year, when the market benefited from a post-election bounce, but similar to 2014.
Rightmove also told the analysts that July’s performance so far has been in line with the strong monthly revenue it achieved in the first half.
Next year, analyst William Packer reported in a note to investors, Rightmove said it expects limited agency formation and less uptake of the Optimiser package, limiting growth.
Optimiser, which Packer described as offering elevated prominence for market-leading agents at a premium price point, has been a key driver so far this year.
Rightmove told the analysts it had 80% of market share in terms of time spent on mobile.
There was also reference to court action involving OnTheMarket, with Rightmove saying it could expect 200 agents back if the ‘one other portal’ rule were overturned.
Packer’s firm Exane BNP Paribas rates Rightmove as “outperform”. However, it is forecasting a 2% drop in agency numbers, reflecting a “scenario of a mild UK recession and a fall in UK property transactions”.
Exane said that Rightmove’s structural growth and revenue model is “well placed to prosper despite Brexit headwinds”.
The City was appreciative of yesterday’s results and Rightmove’s shares finished the day up 331p (8.7%) at 4121p.
Comments (41)
It is about time that everyone wakes up to the fact that OTM is here to stay and that when more agents come round to realising that the like of Rightmove and Zoopla will continue to raise prices year on year, OTM will be the most cost effective portal combined with a very ,very good user friendly site – all acting in their members best interests who effectively own it.
OTM has the ability, it just need support.
So someone dislikes knowing their buyers and crafting deals?
Whoever you are, find a new job.
Some people just thump the button, they can’t read what it says, they just hit it.
Their job is to ‘Dislike’ – or at least it is part of their Job Description, LA201625.
That became patently obvious quite a while ago…
Oh and lets hope that come Christmas or this time next year, I’m not reading (again) about how RM took the proverbial out of you and how you aren’t looking forward to the next round of price hikes, you either drop your trousers and bend over or you pull em up tight (not too tight, must be careful of those balls you grew) and start calling the shots, just like when you decided to open your own business, remember those days, a white knuckle ride that you relished,grew and grew, just like OTM and Z.
Can’t get my head around why firstly people are surprised, and secondly moaning about it?
It’s the biggest advertising portal in the UK for properties, is visited on average more times than the BBC website on a daily basis. It has every right to charge more.
Those moaning about being charged more probably don’t moan when they manage to get away with charging a seller a few extra quid on their fee.
It also gives off the impression those moaning who may have their own company are struggling in terms of costs due to under performing within their market place and this just adds additional pressure.
In the current climate, Rightmove to me is an additional tool. Those who are able to qualify their buyers correctly and motivated sellers should be able to craft sales and listings without the need for any advertising. When I worked at CW our office was on it’s knees and were never called out to valuations, in the event we muscled in we had to know our buyers and craft deals that way, which reflected brilliantly on us as (if my memory serves me right) 68% of our uploads to Rightmove Zoopla etc were as SSTC.
Really Guys n girls! did you or the city really need to be told!! RM to raise prices again, ****** hell shock and horror.
Every year, usually around December you all moan about rm price hikes and i read that some of you say they are worth it but the overall majority of you are peeved and want to leave so the alternative is for you to give them a proper jolt and join zoopla and OTM, you do get to have one other portal well how about making it Z instead of RM, yeah they aren’t as good (at the moment) for quality, neither is OTM but in time both will improve and RM will have to fight to get back your business.
Be decisive, try it and see, if it works and there is a strong likelihood that it will then it was a great business decision which will put rm on the back foot, if it doesn’t and I find it hard to believe it will fail then you have the choice of negotiating a package to return but my bet is you will all do so well in leaving rm, bringing in Z and OTM because with both of them stronger the traffic will follow and you know it but you need those balls, good luck to you all.
Power tends to corrupt, and absolute power corrupts absolutely.
The leave vote has shown that anything is possible if people unite. The same applies to RM.
The problem with OTM is that they DO NOT appear to want member participation.If they did we would surely have regional and area representation?
Whatever happened to Agents’ Mutual?
The OTM board has failed to innovate or unite the larger part of the independent market. These agents appear to be resistant to joining OTM.
The question that needs answering is why?
Perhaps these agents have lost faith with the London Centric OTM board whose very first action was to feather their own nests by launching oversea property and Country Life at the expense of all members but benefiting the few.
it appears to me that change is required.
As Winston Churchill once said ‘I never worry about action, I worry about inaction’.
I hope zoopla and onthemarket close now. The only way we can sort this is by going down monopoly route in court. Useless agents who made rightmove stronger by comeing off zoopla should be rounded up and sent to turkey.
Rightmove is Goliath / Zoopla was David / onthemarket is NATO…they do nothing but watch from sidelines and say your very naughty..please stop charging us more.
No one can really blame OTM for the prices rises by RM. but you can understand people’s frustration that OTM has done very little in curbing the latest squeeze.
OPEN QUESTION to those who currently don’t support OTM.
If OTM was to change its one other portal rule, would you invest in it for the long term benefit of breaking the monopoly?
OTM is the product, it does what it is designed to to and does that as well it’s design allows it. It is affinity group that is failing to take advantage of being an affinity group. OTM has an obvious product lead; Ian Springett perhaps the frustration is that there is no obvious head leading the the affinity group.
It isn’t possible for Ian to be the MD, the SD, the OD and head of product
Part of OTMs problem is it has no charismatic, tub-thumping figurehead.
Ian Springett is a nice enough bloke and a highly capable technician who is cool under fire but doesn’t fire up a crowd. He is probably a very good CEO but he isn’t a charismatic leader who can whip up a storm of interest.
They should let Springett get on with the backroom stuff and appoint someone to a new post of ‘Leader’. Someone who is generally trusted by the industry, who believes in the OTM vision, is all over the media, at all trade shows pressing the flesh; an all-round in-your-face-OTM-evangelist, who has the wit, charm, and passion to lead the industry into the Promised Land.
Until then OTM is going nowhere fast.
I wouldn’t know that there’s a job in the offing in any event – but are you perhaps looking to put forward a ‘charismatic, tub-thumping figurehead’ for consideration, AgencyInsider?
Anyone else started to see the similarity of opinion between the big portal sheep and the OTM shepherds? Its a bit like something else that happened recently. Now what was it I was thinking of? Oh, yes. Remain vs Leave.
We were playing this game for over two years before those lightweight debates got started.
All those who sat on the fence/sneered at the efforts of agents trying to do something/were too timid etc etc have only themselves to blame for this.
A monopoly doing (too) well by gouging profit out of its captive client base will ALWAYS seek to do better – and ALWAYS at the expense of its clients. With shareholders demanding increasingly higher returns this is a fact of life. Name one monopoly that has been so philanthropic it has given something back. Thought so.
If OTM fails – which will be an unmitigated tragedy – then it won’t be the fault of those who tried to make it work. This would have been the very last chance for agents to take on RM which one day may well take over our role. By not backing OTM in the vast numbers necessary to represent a real challenge to RM those of you who have stayed away have probably consigned the future of our industry to the bin.
Well said marcH !
OTM is failing because the website is terrible, and there was little advertising prior to when it was launched. It was too busy attacking zoopla rather than concentrating on itself.
The idea was a good one, but delivered really badly. Estate Agents need to stick to being Estate Agents.
HOW is the website “terrible”, LocalAgent201625?
Genuine question.
Come on everyone. Have another good old moan about RM excessively profiteering and yet again giving notice that they are going to do it to an even higher level. Bleat about it but do nothing about it.
What is the correct term for ongoing masochistic madness?
Stay-offa-onthemarket-i-tis – A common condition among the weak.
I think the correct term is arsehole
I blame OTM.
Before they [OTM] came along, RM had no intention on increasing year on profits and producing better results for its staff, management team and importantly it’s shareholders.
I was privy to one of their pre 2015 meetings and they promised to try and bring down the cost for it’s member agents and wanted to work towards really giving something back and ensuring that the public know they really are only as good as their customers. (That’s us by the way) I felt all warm and fuzzy inside.
Good on em….. is the problem….. we would happily earn more if we could – whatever industry you claim to work for.
If only there was another option out there….. oh well tough market ahead, be it the downturn at some point of the natural cycle or a BRexit backlash….. the strongest (and richest) will survive.
There you go PeeBee – Twice in 2 days LOL.
This is why I don’t comment on here anymore, does nowt for my ego….. usually everyone agrees with what I have to say in #ricworld
Now come on, tenner for everyone who likes my comment.
Enjoy the ‘Dislikes’, Ric – bathe in their welcomeness.
Every one is further confirmation you’re somewhere near the truth of the matter.
As an industry we should create our own portal, show some solidarity and abandon Rightmove & Co.
Wait, what…?
RM day one. Report huge profits and success. Doing so well blah blah blah.
RM day two.We need to increase prices because the profits we boasted about yesterday were that amazing we want to take more money from you.
RM day 367. Look we have increased profits by almost £60 a branch.
Sickening isn’t it? Some would say pure greed.
As storm clouds gather over the housing market, estate agents are raining money on RM.
My firm was a staunch supporter of RM and not interested in AM.
Someone will come up with something better, wish I could, this time I’ll be on board.
A further hike will be the straw that breaks the camels back.
Can’t quite tell if you’re being ironic or not. There is an alternative, it’s called On The Market, however it’s firms like yours who are stifling its progression but moaning about RM price hikes.
OTM/AM may not be perfect but i’d far rather give my hard earned pounds to them than RM. Sort yourselves out, grow a pair and get behind OTM.
Frown Please – you missed an important diary date:
RM Day 368. ‘Rightmove has told analysts that it is confident it can charge agents an extra £70 to £80 per office per month, next year.’
Nowt better than a bit of compound inflation added to your ‘subscriptions’ – is there?
PeeBee – apologies, obviously we can keep rolling this same equation for xyz amount of years.
No apology needed, FP.
However, it was important to remind people that ‘the cycle’ they have become accustomed to is exactly that…
Complete the following sentence:
If it walks like a monopoly, talks like a monopoly and acts like a monopoly it’s….
……got a problem!
Not whilst OTM hangs around like a lingering wet fart it doesn’t.
OTM isn’t the threat to RM, there is a subtle difference between the product and a 6300 branch affinity group. 31.5% of the industry easily top trumps the size of Rightmove’s single largest customer, that is a powerful negotiation point.
I never said OTM was a threat to RM. Of course it isn’t. On its existing run rate, it’ll have the magic 7500 branches signed up June 29th 2017… this is a business that said it’d be bigger than Zoopla by January 2016!
The point I was making was that where there are alternatives, people like the Competition and Markets Authority are never going to look at Rightmove.
The sooner the lame horse that is OTM gets put down, the quicker an argument could be made that Rightmove is indeed a monopoly. I mean, if an agent led portal didn’t succeed in reducing its market share, what will?
The CMA don’t need to look at Rightmove, they are not a forced monopoly they are an elected one. Agents chose to use Rightmove.
Robert, what happens if agents choose to delay uploading their properties for 24/48 hours.Would this not be in breach of RM’s own ‘FREE’ real time data licence?
If so, RM now potentially have the power to prevent these agents using their real time feed, if they so wish. This would then mean having to manually upload RM via their own upload system as well as uploading your own software provider…. meaning uploading twice!
Or would RM enable their system to upload your own website and/or others. This of course would be ‘FREE’ which may mean that you no longer need another upload service provider for simple uploads!
Now consider why RM didn’t want to pay £75 million for PSG!
That’s an interesting thought, I’d probably have a play with the CRM system property status to have an “available, no marketing” status that withholds properties from marketing until I am ready to something.