Rumours of bid for Rightmove as agent numbers tumble
Friday 14th November 2008
Amid rumours that Rightmove has become a buying target, the portal has said that 500 agents departed the site in July, and that between 250 and 300 have been going each month since.
Nearly 2,000 agents have gone from the site over the year as a whole, said Rightmove in an interim statement yesterday that covered the period from July 1 to November 13.
Rightmove blamed low housing transactions for a “significant number of estate agents” leaving the market.
The falls brings agency membership down from 12,600 to 10,700. The portal last month announced it was cutting 20% of its workforce in an effort to make £5m cost savings.
Its simultaneous announcement – that it would be upping the spend on marketing by £1m – did nothing to appease agents, who wanted to see a cut in their membership fees rather than money spent on advertising.
In yesterday’s interim statement, Rightmove said most of the agents that have quit have either gone bust or were removed because they failed to keep up with their membership fees.
It said: “At least three out of every four estate agents who have left Rightmove over the last year have either gone out of business or were removed for non-payment, which in practice is frequently a precursor to going out of business.”
Rightmove also said its new homes listings had been affected because of a decision by two major developers not to advertise on the portal.
The total number of its advertisers is now down 9% on this time a year ago, although falls have been slightly offset by an increase in lettings. Lettings agents only on the site have risen by a quarter to 2,900. Rightmove is charging 30% more for letting agents than it did a year ago, thanks to a recent price hike.
Despite saying it remains on track to meet expectations, the portal continues to face further challenges. According to an Estate Agent Today poll, 75% of agents would leave Rightmove when their contracts come up for renewal, whilst around 1,500 have joined a buying group to try and reduce their membership costs.
The mystery buyer now rumoured to be looking hard at Rightmove is thought to be a high-profile American hedge fund owner, already a shareholder and who appears to have been building up shares and voting rights.
A Rightmove spokeswoman declined to comment.
Friday 14th November 2008
Amid rumours that Rightmove has become a buying target, the portal has said that 500 agents departed the site in July, and that between 250 and 300 have been going each month since.
Nearly 2,000 agents have gone from the site over the year as a whole, said Rightmove in an interim statement yesterday that covered the period from July 1 to November 13.
Rightmove blamed low housing transactions for a “significant number of estate agents” leaving the market.
The falls brings agency membership down from 12,600 to 10,700. The portal last month announced it was cutting 20% of its workforce in an effort to make £5m cost savings.
Its simultaneous announcement – that it would be upping the spend on marketing by £1m – did nothing to appease agents, who wanted to see a cut in their membership fees rather than money spent on advertising.
In yesterday’s interim statement, Rightmove said most of the agents that have quit have either gone bust or were removed because they failed to keep up with their membership fees.
It said: “At least three out of every four estate agents who have left Rightmove over the last year have either gone out of business or were removed for non-payment, which in practice is frequently a precursor to going out of business.”
Rightmove also said its new homes listings had been affected because of a decision by two major developers not to advertise on the portal.
The total number of its advertisers is now down 9% on this time a year ago, although falls have been slightly offset by an increase in lettings. Lettings agents only on the site have risen by a quarter to 2,900. Rightmove is charging 30% more for letting agents than it did a year ago, thanks to a recent price hike.
Despite saying it remains on track to meet expectations, the portal continues to face further challenges. According to an Estate Agent Today poll, 75% of agents would leave Rightmove when their contracts come up for renewal, whilst around 1,500 have joined a buying group to try and reduce their membership costs.
The mystery buyer now rumoured to be looking hard at Rightmove is thought to be a high-profile American hedge fund owner, already a shareholder and who appears to have been building up shares and voting rights.
A Rightmove spokeswoman declined to comment.
posted by tony at 3:03 PM
0 comments
