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FT first 'Rightmove maintains grip in battle of property portals @onthemarketblog

Rightmove increased revenues 15 per cent to £192.1m in 2015, it announced on Friday — slightly ahead of expectations, while pre-tax profit was up 12 per cent to £137.1m. It racked up 1.3bn visits to its website in 2015, 18 per cent more than a year earlier.
Rightmove also retained a healthy margin: underlying operating margin was 75.1 per cent, up from 74.6 per cent a year ago. William Packer, analyst at Exane BNP Paribas, said it was a “a strong set of numbers, especially in the context of the Agents Mutual [OnTheMarket] launch last year”.Exane BNP Paribas are also analyst brokers for the RMV.

OnTheMarket is a property portal set up by agent-run collective High Street Estate Agents’ Mutual with the aim of bringing down fees paid to list online FOR THEMSELVES . Presently Rightmove and Zoopla dominate the market and are the first port of call for many consumers. Zoopla reported on Thursday it had increased its agent members 1 per cent to 12,841.

BUT Agent Collective don't want to bring down the their commission fee, based on the percentage, of the sale price or let of property. 

There is a growing number of online estate agents ,who want TO BRING DOWN THE COST OF SELLING / LETTING HOMES . Though they are banned by ,Agents Mutual founding members include Corporate high street estate agents Knightfranak , Savills , Chestertons Douglas & Gordon, Glentree Estates, and Strutt & Parker. [ who also advertise in the FT online publication].

Many within the industry think the genesis of the, sole purpose was to prevent the growth of the online estate agent sector which is currently 5 % , and growing annually.And that the duopoly ploy, is just an elaborate smoke screen to prevent loss of market share to the on-liners estate agents, who offer full service, though with drastically lower fixed fee for letting / selling property. 

Last year the government published a 25 page blue print document,encouraging online real estate agents, business model,  A better deal: boosting competition to bring down bills for families and firms and boosting economic growth.

Dominance in the Real Estate Market

operates from over 700 owned and associate offices, employing more than 30,000 people in over 60 countries throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.

In February 2015, Savills announced it had acquired a substantial shareholding in a Malaysian real estate business, previously trading as CBRE in Malaysia. The business has close to 300 staff, and offices in Kuala Lumpur, Penang and Johor.

Knight Frank ,Its global network encompasses 370 offices in 55 countries and more than 12,000 employees handle in excess of US$817 billion (£498 billion) worth of commercial, agricultural and residential real estate annually

Chestertons is a London and international residential property specialist with headquarters in Mayfair, and 34 high street branches across London, employing well over 400 workers. The firm’s international arm has more than 50 offices covering much of Europe and reaching as far as Australia, Singapore, the Middle East and the Caribbean.

Douglas & Gordon comprises of 19 offices in central, west and south-west London. From Notting Hill to Balham, and East Putney to Pimlico,

Strutt and Parker have 56 offices nationwide included Scotland and London

Glentree Estates office operating in Hampstead and Highgate areas of London.

online estate agency ceo talks about

ARLA - The Association of Residential Letting Agents. 

Who supposedly regulates the industry independently , are keen supporters of agents mutual ,having produced media, that indicates online estate agents as a threat.

[ A letter to Arla member who is online hybrid agent ]

I can assure you that ARLA is not actively discriminating against online or ‘hybrid’ agents such as yourself (agents that provide all the services offered by high street agent does but without a high street presence). Indeed, two of the ten ARLA Board members are such agents.

 ARLA and our sister organisation, the National Association of Estate Agents (NAEA) are supportive of Agents Mutual because it is an agent-owned, agent-run, not-for-profit portal which we hope will be able to curb the power that the duopoloy of Rightmove and Zoopla currently hold over the sales and lettings market.

The issue of online agents not being able to access Agents Mutual has been raised by my colleague, Mark Hayward, NAEA Managing Director (copied), who sits on the Agents Mutual Board on behalf of NFoPP. The intention of the rule was to prevent those online agents that offer a reduced service (effectively just a listing service) from using the portal. I know the issue of hybrid agents such as yourself is currently being investigated and I am sure Mark will get in touch with you once a suitable resolution has been reached.

David Cox
Managing Director ARLA

NAEA The National Association of Estate Agents

Online estate agent Adam Day of Hatched [ now bought out by connels high street estate agent ] resigned from the NAEA over its support for OnTheMarket – which will ban online agents when it launches next Monday.

Day  accused the NAEA of hypocrisy in accepting his money for membership while supporting an organisation that excludes agents whose business model is not that of a traditional agent.

Day also said that the NAEA is burying its head in the sand over a new breed of hybrid estate agents – saying its refusal to engage with them has disadvantaged the industry because its “disregard” has allowed in low-budget agents which “muddy the market”.

The NAEA and ARLA, together with the other NFoPP bodies, arranged a deal with Agents’ Mutual in October 2013, throwing their weight behind the new portal after ditching their own disastrous website, PropertyLive.

Mark Hayward, NAEA managing director, sits on the Agents’ Mutual board and all NFoPP agents will be getting branded listings to denote their membership.

Day, who describes his own business as a full-service agency, has written an open letter to the NAEA – which the Association says it has not received.

Abuse of a Dominant Market Position

The Agents Mutual , which only allows its members to also list properties on one of the two main competitors, announced in January it had recruited the support of 6,500 agent offices However, this figure includes agencies that have signed a “letter of intent” to switch over when the total reaches 7,500.

“Rightmove celebrated its 15th birthday in 2015 and together with the support of nearly 20,000 customers, it has changed the way Britain searches and researches property,” said Nick McKittrick, chief executive.
The company will pay out a final dividend of 27p a share, bringing the year’s total to 43p — a 23 per cent increase on 2014. Rightmove allows the listing of online estate agents property stock

" Zoopla Property Group PLC Thursday[25/02/16] said it has had a "solid start" to the financial year, attracting record levels of visits to its websites in January, and said it plans to launch a number of new and innovative products later in the year.

Zoopla, which owns consumer brands focused around property including uSwitch and PrimeLocation, said it has performed well in terms of trading since the start of October, attracting an average of 47.0 million monthly visits to its websites and mobile apps.

In January 2016 , Zoopla said it attracted a "record audience" of 58.0 million visits to its sites and apps. allows the listing of online estate agents property stock.

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