A City analyst has sent out a note to investors after the property trade press reported that ‘hundreds’ of agents are claimed to have contacted an industry consultant about quitting OnTheMarket.
William Packer, of Exane BNP Paribas, said in his note: “We see the news as a small positive for Zoopla … but we caution on any imminent major shift of membership back from AM [Agents’ Mutual] to Zoopla.”
Packer included in his note a link to Estate Agent Today’s story.
The industry consultant concerned is Iain White, whose Linked In profile names Choices as one of the agents that he advises.
Choices, whose chairman is Simon Shinerock, advertises widely on Zoopla.
White has also been involved in an online agent. We carried the story here
In Packer’s note of yesterday evening, the analyst said: “While details remain somewhat vague, those ‘action group’ agents we believe had typically chosen or are considering leaving Agents Mutual and were facing legal action for reneging on the terms of their contract.
“As a reminder, Agents Mutual members had (usually) signed a 5-year contract and committed (always) to the ‘one other portal’ rule.
“The market has responded positively with Zoopla shares up c.5% this week. We see the news as a small positive for Zoopla with the news suggesting AM momentum is slowing and AM management may become distracted by the growing controversy.
“However, we caution on any imminent major shift of membership back to Zoopla.”
Packer’s note said that only a minority of OTM agents had so far joined any action, and that the timeframe could take months, if not years.
Packer’s note to investors adds: “We are a year into launch of Agents Mutual and our wide network of estate agent contacts suggest that the commercial impact of leaving Zoopla has proven somewhat limited for estate agents, thus reducing the incentive of those agents to return to the Zoopla platform (whether they leave AM or not).
“For example, on the sales side of the industry we argue Zoopla has not been a key factor in winning or losing vendor instructions in many geographies – a key reason why agents have not returned.
“On the lettings side we see Zoopla’s impressive lead generation as a more critical factor in agent decision making. We do not see these dynamics changing because of potential internal issues at OTM.”
Packer’s note continues: “While the story has been well covered in the trade press, Agents Mutual have offered limited comment on the story.”
He says that a key area of dissatisfaction concerns the £50 offer of membership to some agents, but says there is “much uncertainty” around this.
Other analysts who have commented on the situation are Credit Suisse and Jefferies, which both raise the possibility of OTM now ending its ‘one other portal’ rule.
EYE has, as of yesterday, seen documented evidence of the £50 offer.
EYE also points out that our story of yesterday was fully subject to vetting by Iain White.
We agreed to this, as it was made clear that these were the only terms available to us for access to the story without legal action, and we judged that the need to enter this into our readers’ arena was paramount.
We acknowledge that this was a very difficult point to call, and that some readers may not have agreed. Today’s story is not similarly subject.
Comments (19)
“Now II have no issue with the £50 deals, it makes sense to do so, BUT you cannot do it and keep charging gold/silver members the same as before.”
REALLY? what about the “deals” that certain other portals are offering – and have previously offered – to ‘new’ or ‘returning’ Agents whilst we who sit on whatever rates they signed us on at (plus those excitedly anticipated yearly increases) continue to pay at the higher rate?
Your sense makes none whatsoever.
Life sucks – suggest all the moaners get used to it or look for an alternative to it.
The point here is we all know it goes on both Rightmove and Zoopla and then they slowly get you back up to what the others pay around you.OTM specifically said , in writing …in the contract that they wouldnt …then did it anyway .Doesn’t sound very mutually to me. The other businesses are commercial enterprises and entitled to do what they want with their pricing strategy and that’s in the negotiation. They don’t put n their contracts that you will get the best price and then simply ignore it .
It is no surprise to me that this website and the majority of those who comment in these sections would paint this as something that it is not (look at the advertising banner for Agents Mutual on this very page!). No-one in life does anything without some sort of vested interest, including Iain White (and me).
The only relevant thing (as far as this subject is concerned) is whether the agents involved have a genuine complaint, how many of them there are, and whether they are successful. Every bit of advice we have seem suggests that this is a bad situation for Agents Mutual – time will tell.
One thing that is clear though; this ain’t no mutual.
(look at the advertising banner for Agents Mutual on this very page!)
Oh, HarryN – your post is nothing but delicious irony.
This is NO DIFFERENT WHATSOEVER to the situation on the back of the bog door down the other pub – where every viciously scribbled word aimed at AM/OTM has its own flashing purple flag.
#MONUMENTALfail
Just remember that Hoopla have a 1 billion pound business to defend. Of course they will have people making these stories.
Mind you, it reminds me of the tobacco company telling us the smoking is good for you. If you say it often enough some people will believe you.
My sources tell me Mr White is also a paid “ambassador” for ZPG. Hardly impartial
Yes but I think what’s clearly been asked here is if you can connect Iain to Kevin Bacon in 4 more steps . The obvious next step is that Iain knows his own own mother , who it’s been widely reported logged into zoopla once #consipracy
More haste less speed, danny.
And a little more thought, planning and careful execution wouldn’t go amiss, either.
#justsaying
Slow down people and especially journalists. Let’s just make sure the facts are reported correctly.
i am no longer involved in any online business that project came to an end many months ago and whilst I remain good friends with the owner he has now in fact purchased a traditional high street agency which he is successfully building. A proper look at my linked in account does show this so please be thorough with research.
i am NOT and never have been a paid or unpaid Amanassador of Zoopla. I did some Cnsultantcy work for them on product development in the summer last year again project finished product now in the market.
Yes I vetted the story to ensure it was an accurate reflection of the facts and the conversation as I would ith any article attributed to me.
This is is not a pro ZPG position or for that matter an anti OTM position
A thorough check on grammar and spelling wouldn’t go amiss either!!!
So true, jmeapps01
Prima facie case of the person telling everyone else in the room of the need to slow down needs to slow down himself!
Agreed need to slow down as you can imagine lots to do
Did i read this right ? The article yesterday was ‘fully subject to vetting by Iain White’ !
Kinda puts its credibility into perspective.
Not really they balanced it out the very next day.
It would have been an issue if they did not admit to it and it came out.
Well done eye for a good story and well done on keeping balance.