Rightmove Essential for Estate Agencies, But OnTheMarket Poses Investment Concerns

Many home seekers prefer the convenience of searching for properties online instead of physically visiting multiple locations, with Rightmove being a top choice for a wide array of property listings.

Estate agents find that having their brands and properties on Rightmove gives them an advantage in the market by reaching the largest audience of potential home buyers in the UK, contributing to their profitability.

Last year, despite a downturn in the housing market, Rightmove increased its profits by 8% to £260m, thanks to estate agents investing more in advertising on the site. The company predicts a revenue growth of 7% to 9% for this year, even though site traffic declined last year and they expect to see fewer customers.

Rightmove reported that its revenue rose by £31.7m in 2023, a 10% increase from the previous year, totaling £364.3m. This rise is partly due to agents choosing higher-tier packages and digital products, and the site has also integrated a mortgage advice feature.

There was a 9% increase in the average revenue per advertiser, now at £1,431 monthly. This helped offset a slight 1% drop in revenue.

Nonetheless, many estate agents find Rightmove indispensable for their business.

Russ Mould, the investment director at AJ Bell, remarked that Rightmove’s success underscores why it is vital for estate agencies, allowing the company to maintain strong subscription pricing.

But Mould also highlighted some concerns, noting that the growth of OnTheMarket, now with the support of US company Costar, is making investors nervous.

After securing its position as the third-most-visited portal in the UK after Zoopla, OnTheMarket aims to rival Rightmove’s top spot in the property portal market.