A class action lawsuit has been launched against Rightmove, the UK’s leading online property listing portal, by hundreds of estate agents who accuse the company of charging “unsustainable” and excessive fees. The legal challenge, seeking just under £1.5bn in damages, claims Rightmove has “abused a dominant position” in the online property portal market.
The action, spearheaded by accountant Jeremy Newman, a former Competition and Markets Authority (CMA) panel member, has been filed in the Competition Appeal Tribunal. Newman asserts that thousands of estate agents and new home developers have been subjected to unfair subscription fees, with some reporting charges that have more than doubled in recent years.
Legal Challenge and Market Dominance
The core of the claim rests on the allegation that Rightmove leverages its significant market position to impose disproportionate costs on its partners. Newman stated that the lawsuit is not intended to argue against Rightmove’s existence, acknowledging its “important function in the property market.” However, he added, “Rightmove is exploiting a self-evident dominant market position, and are charging too much for it.”
Rightmove has consistently reported a profit margin of approximately 70%, positioning it among the most profitable companies in the FTSE 100. The company’s own consumer research indicates an 80% share of time spent on property portals, underscoring its pervasive presence in the UK housing market. This market dominance, according to the claimants, has allowed Rightmove to raise fees without commensurate improvements in service, particularly as estate agents have faced pressure from flat property prices.
In response to the allegations, Rightmove has stated that the claim is “without merit, and we will defend it vigorously.” A spokesperson for the firm affirmed confidence “in the value we provide to our partners and consumers, who are at the core of our business solutions and digital platform.” The company further highlighted its role in facilitating market transparency and liquidity, stating its platform offers “a growing range of constantly evolving products and features.”
Agent Experiences: Rising Costs and Operational Strain
The BBC has reviewed evidence from multiple estate agents detailing sharp increases in their Rightmove fees. Alisa Zotimova, founder of London-based AZ Real Estate, reported that her fees have “more than doubled” in seven years. While acknowledging an initial reduced promotional rate, Zotimova described the subsequent rise as “unsustainable.” She articulated a sentiment shared by many agents: “You don’t have to sign up but it feels like I’m pushed into a bit of a corner with my customers expecting me to use it.” Zotimova believes that if smaller agents cannot afford these fees, it could lead to “higher fees, less choice of agents if smaller ones can’t compete” for buyers, sellers, tenants, and landlords. Upon learning of the legal action, she decided against opting out, feeling it offered a “David and Goliath” chance.
Another agent, Chris, who owns two estate agencies in Northamptonshire, reported being charged over £5,000 a month for a basic membership, which allows him to advertise between 30 and 50 properties online. He equated this cost to the salaries of two full-time staff members per month, calling it “a lot of money to find every single month.” Chris noted that these costs are ultimately passed on to clients and described the challenge of running a small business when a single company has “complete control of that business.” He conceded Rightmove’s status as the “number one portal” but argued that costs should not be unilaterally determined by the company, forcing agents to “cut back and make savings in other areas to facilitate the juggernaut that is Rightmove.”
Newman further elaborated on the broader impact, stating, “Estate agents are having to employ fewer people because they can’t afford them alongside their fees to Rightmove. As a result, their services can’t be as effective.”
Acknowledging Value Amidst Concerns
While many agents express concern over the rising costs, some acknowledge the platform’s undeniable efficacy. Andy Keogh, an estate agent in the Midlands, stated that 80% of his leads originate from Rightmove, which he described as having a “monopoly on the market.” Despite his fees increasing from £1710 to £1850 a month from June for up to 40 properties in sales and lettings, Keogh believes the platform offers “value for money.” He challenged dissenting agents, saying, “If you don’t like it, don’t use them. Agents who are moaning would struggle with their business if they decided to come off it.” Keogh also noted that for lettings, an alternative platform like Zoopla is considerably cheaper, charging around £450-500 a month.
The class action underscores a significant tension within the UK property market: the reliance of thousands of estate agents on a dominant digital platform and the perceived exploitation of that reliance through escalating fees. The outcome of this legal battle could have profound implications for the operational models of estate agencies and, ultimately, for the costs incurred by consumers in the housing market.
