Estate agents accuse Rightmove of charging excessive fees

Estate agents are now taking legal action against Rightmove, alleging the company’s fees are “unsustainable” and have more than doubled in recent years. Accountant Jeremy Newman has initiated a class action lawsuit on behalf of potentially hundreds of agents, with the BBC confirming a letter of claim has been dispatched seeking nearly £1.5bn in damages. The case argues that Rightmove has “abused a dominant position” in the online property portal sector.

Rightmove dismissed the claim as “without merit” and vowed to defend it vigorously. The firm expressed confidence in the value it provides to partners and consumers, emphasizing its role in connecting buyers, sellers, renters, and landlords. However, the lawsuit highlights that agents and developers are facing inflated subscription costs with minimal service improvements, forcing them to “employ fewer people” due to financial strain.

Newman noted that estate agents report rising fees alongside stagnant service quality, exacerbated by flat property prices. “Their services can’t be as effective,” he said, adding that the class action does not seek to eliminate Rightmove but to challenge its pricing strategy. The company maintains a 70% profit margin, making it one of the most profitable entities in the FTSE 100. Its consumer research claims an 80% share of time spent on property portals.

Agents’ experiences with Rightmove fees

Alisa Zotimova, founder of AZ Real Estate in London, described her fees as having “more than doubled” over seven years. She started with a reduced promotional rate that later surged, calling the increase “unsustainable.” “You don’t have to sign up, but customers expect me to use it,” she said, fearing that smaller agents unable to afford these fees would reduce market choice.

“It feels like a David and Goliath situation. Now there’s a chance to challenge Rightmove’s dominance,” Zotimova added.

Chris, who runs two estate agencies in Northamptonshire, pays over £5000 monthly for a basic membership, equivalent to two full-time staff salaries. “It’s a lot of money to find every month,” he said, noting that costs are passed on to clients. “We just have to continue cutting back to keep up with the juggernaut that is Rightmove,” he remarked.

“When you’re trying to run a small business, and a single company controls the market, it’s a challenge,” Chris explained.

Andy Keogh, an estate agent in the Midlands, believes the platform offers “value for money,” but others argue that the fees are disproportionate to the service provided. The legal battle continues as agents weigh the impact of Rightmove’s pricing on their operations and the broader housing market.