A single-office agency in Wales says that it would have “gone under” had it continued with its membership of OnTheMarket.

Gareth L Edwards, in Bridgend, cancelled its contract with OTM last summer but says it has only now received a legal letter.

The firm says that it was not even invoiced on a monthly basis from last June onwards, until receiving an invoice today (April 15).

It says that OTM was a “brilliant concept” but failed to deliver business, and that its membership of OTM had been used by competitors to “slaughter us”.

The firm has now received a letter from OTM’s law firm, Eversheds, demanding payment of £3,186.

But managing director Gareth Edwards, who founded the firm in 1968, claimed that he had always understood that his relationship with Agents’ Mutual was non-binding.

In his letter to OTM boss Ian Springett of July 6 last year, Edwards said: “We were always led to believe that our relationship with Agents’ Mutual was non-binding. This was stated in the meeting we had with the representative of Agents’ Mutual.

“To be held in a five-year contract is completely unacceptable and restrictive; restrictive practice is not acceptable or I understand, legal.

“I am not prepared for my business to suffer as we have experienced in the past six months, mostly due to the fact that we have been using the wrong property portal.

“We have taken legal advice and if you wish to pursue this matter further, I can assure you that it will be vigorously defended.”

Edwards said that three other firms in Bridgend had not signed up to OTM – and used this to their advantage when winning instructions.

Edwards’ own firm gave up Rightmove but remained on Zoopla, to comply with OTM’s ‘one other portal’ rule.

He said: “It definitely cost my business and there is no way I am going back to OTM.”

He said he was surprised to have received the legal letter from Eversheds so many months later, and to find that the alleged arrears were not itemised.

The firm is now back with Rightmove and remains with Zoopla, and says that it has built its business back up.

An OTM spokesperson said: “We do not comment on contractual relations with individual members.

“Like most organisations, we see it as standard practice to seek outstanding payments from customers in arrears with the payments they are contracted to make. On behalf of the broad membership of Agents’ Mutual, we also work to ensure that agents who have entered contracts with us meet their obligations. In this context, letters have been sent to a very small minority of agents.”
* Separately, and in brighter news for the portals, one of EYE’s regular commentators yesterday posted up their intention to join OTM.

‘Smile please’ said: “As many know, I have sat on the fence for some time.

“Reading comments and talking to others this week, I think now is the time I get off it and throw my support behind OTM.

“I think there is still a long way for OTM to go and still not convinced they will topple RM, but with the rise of online-only agents, increased fees, data sales and by the looks change in stance of OTM fees, we should take the plunge. It’s a risk but a calculated one.

“I hope others too will join up in the coming months.”