Estate agents launch class action against Rightmove over fees

Class action targets Rightmove fees

Estate agents have accused Rightmove of charging "unsustainable" fees, with some saying the portal's charges have more than doubled in recent years.

The company is now facing a class action launched by accountant Jeremy Newman on behalf of potentially hundreds of estate agents. A letter of claim has been sent to Rightmove seeking just under £1.5bn in damages, alleging the website has abused a dominant position in the online property portal market.

Rightmove said the claim was "without merit, and we will defend it vigorously", adding that it is "confident in the value we provide to our partners and consumers."

Allegations of excessive charges

The claim, filed in the Competition Appeal Tribunal, alleges that Rightmove charged thousands of estate agents and new home developers excessive and unfair subscription fees.

Newman said hundreds of estate agents had reported fee increases despite little change in the service they received, at a time when agents had already been squeezed by flat property prices. He said some firms were having to employ fewer people because they could not afford both staff and Rightmove's fees.

Rightmove has consistently reported a profit margin of around 70%, and its own consumer research suggests it has an 80% share of time spent on property portals. Newman said the case was not arguing that Rightmove should not exist, describing it as having an important function in the property market, but claiming it was exploiting a dominant market position and charging too much.

The BBC reviewed evidence from five estate agents suggesting sharp rises in fees. Many other agents said Rightmove was significantly more expensive than rival platforms, while also acknowledging it generated most of their leads.

Agents describe pressure of rising costs

Alisa Zotimova, founder of London-based AZ Real Estate, said her fees had more than doubled over seven years. She said she began on a reduced promotional rate that later rose significantly and described the increase as "unsustainable."

Zotimova said she felt pushed into a corner because customers expected agents to use Rightmove. She added that if smaller agents could not afford such fees, buyers, sellers, tenants and landlords could face higher charges and less choice if smaller firms struggled to compete.

Chris, who owns two estate agents in Northamptonshire, said he pays more than £5,000 a month for a basic membership covering about 30 to 50 properties. He said the cost was equivalent to the monthly salaries of two full-time staff and that such expenses were ultimately passed on to clients.

He described Rightmove as the "number one portal" but argued that the company should not be able to determine costs in this way, saying small businesses were forced to cut back elsewhere to keep paying for access.

Some agents still back the platform

Not all agents involved were critical. Andy Keogh, an estate agent in the Midlands, said Rightmove offered "value for money" because 80% of his leads came through the platform.

From June, his fees will rise from £1,710 to £1,850 a month for up to 40 sales and lettings properties. Keogh said agents who stop using Rightmove would struggle, though he noted that Zoopla was much cheaper for lettings, at around £450 to £500 a month.

Rightmove said its platform gives agents access to the UK's largest and most engaged home-moving audience and that it continues to provide a growing range of products and features designed to support transparency, liquidity and confidence in the housing market.