Zoopla’s agency numbers have returned to growth, the portal announced this morning.
It said it had a net increase of 213 new branches since its last update in April.
Analysts at Jefferies, the bank which advised Zoopla on its stock market debut of last year, put out a statement this morning saying: “In our view the net growth and reduced churn of agency branches demonstrates that those that left the platform to join OnTheMarket have found it wanting, despite the relaxation of the one other portal rule.
“Over the next 12 months we expect many of the 3,000 or so Zoopla leavers to return.”
It is not clear what Jefferies means by its reference to the “relaxation of the one other portal rule” – while OTM itself this morning said that there had been no relaxation. Zoopla’s statement itself makes no reference to OTM.
Another analyst, William Packer of Exane BNP Paribas, said that while Zoopla has reported a return to agency growth of 1% from the trough, membership is still 24% below peak. He also called traffic growth “tepid”, and described the client loss since quarter three last year and loss of traffic share as “challenging”.
Zoopla’s statement this morning said its total UK agency membership as at the end of July now numbers 12,556 – up from April’s figure, but down from the 16,261 of a year ago.
Total Zoopla membership now stands at 16,131, including 2,672 developers, 684 overseas and 219 commercial.
In an upbeat trading update to the City this morning, Zoopla said that UK agency churn is “returning towards more normal historic levels and an increase in the number of new and returning member inquiries”.
It also said its listings inventory had continued to grow, from 828,000 to 882,000 properties.
Traffic remained strong, with 45.6m average monthly visits between April 1 and July 31.
The update also said that it was sending “record numbers of appraisal leads to members, up 103% over the same period last year and helping our members win more business”.
Of its acquisition of uSwitch on June 1, Zoopla said this is trading well.
Zoopla also underlined that Alex Chesterman, its founder, is committing over the long term to continue leading it, “working to achieve the significant long-term growth potential of the group”.
The update goes on to say that the board “is proposing some changes to Alex’s remuneration, principally the introduction of a Value Creation Plan in order to appropriately incentivise and reward his continued substantial contribution to the performance of the Group”.
A general meeting of shareholders will have to approve this value creation plan.
The trading update goes on to say that Chesterman has “further been granted authority by the Chairman to sell up to a maximum of 4.25m shares, represenging c. 1% of the Group’s issued share capital, over the coming months to settle personal tax and other liabilities.”
The balance of his shares will be subject to a lock-up until next June 23, the second anniversary of Zoopla’s float on the stock exchange.
In May, in its first results after the launch of OnTheMarket, Zoopla said it had lost 23% of its UK agency members as at March 31.
There were 12,449 member agents at that date, down from 16,261 the previous year.
It also said it went on to lose another 106 agents in April. However, this morning’s update spells out gains since then, although still well down from last year’s numbers.
Last month Rightmove also reported a rise in agent numbers when it delivered record results, reporting growth in total customer numbers to 19,590, with agency numbers up 2% in the first half of this year.
Current Trading & Outlook
Our consumer-led approach and proposition is driving strong engagement on our websites and mobile apps as consumers continue to rely on the unique services and data we provide. Since the end of the period, UK agency churn has slowed significantly with a net loss of 106 UK Agency members in April. We expect agency churn to return to normal historic levels over the coming months as we remain by far the best value digital marketing proposition available to property professionals in the UK. The Group is trading in line with management expectations and is well positioned for long-term growth.
Best value digital marketing proposition?…. Zoopla better let Rightmove know that…. clearly Rightmove are doing something wrong…. from their lofty No1 Portal position.
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Nothing of value to say GPL?
It looks like Z have shrugged off the OTM threat and are recovering. You and your pals have helped bolster RM whilst at the same time prop up a project that has failed to gain any traction – with the millions of its shareholder’s cash wasted. Jolly good show old boy!
Much of the cheering and jeering is dying away and you will be the last to admit you have failed.
No doubt we will expect a shrieking press release from Springer later; telling us all that OTM is going from strength to strength, blah blah blah…
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Sorry? You mention OnTheMarket.com?
I never made any reference to OTM….. you must have an OTM Phobia.
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Oh dear oh dear Harry, more embarassing nonsense.
I think Zoopla are doing well with regard to their diversification plans and business model to cross sell to customer data provided by agents, but as a simple property portal they are the only one of the 3 that has a declining traffic trend.
There were more new start ups than Z has gained new members in the period and there is no evidence that ANY otm member has left otm and gone back. They certainly have no chance of a further 3,000 in the coming year, surely even you would not endorse that prediction.
I have conceded that I think Z will do well as they plan to integrate many other sales platforms into their portal which will make them less reliant on estate agency membership, and I also understand that why they are establishing their different fields they need show a positive outlook to investors.
It’s important to remember that we are all involved in the industry daily so can recognise that most of their claims and predictions for the next year will not turn out to be correct.
It’s time, Harry, to not immediately connect Z and OTM as they are both now stand alone companies with very different aims and targets.
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Bit off subject but in other news RM are rolling out a newer, faster & smarter version of the website! Just watched the video announcing the chance for Agents to “have a play” before the BETA version is released.
Key change is the focus on the Mobile functionality and feature properties and feature agents on the mobile search result pages. As you scroll through the results (lets say 10 properties) a featured agent advert pops up! annoying on the whole as I want property not agents but nether the less this is the next money spinner!!
So to conclude, get ready for the latest push on products from RM as they sell “get your brand the pockets of potential sellers” ahead of the next agent we will be selling the same product to, whether you accept the product or not. If nobody takes it, we will give it free to someone for 3 months to make the next agent think they have paid for it and feel forced to also pay for it. (Own goal taking free products)
However OTM should take note on the mobile experience! I said this last week or the week before, focus on the mobile functionality is now key, for buyers being able to easily navigate and click their way to a viewing request etc on a smart phone or tablet.
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Yes i received that email this morning, five times! from a Jim Davies with the heading ‘I wanted to make sure you got this’
Five times is overkill, this is followed up from their request last week to fill out a survey report so ‘They know what agents want’ – this was sent three times! – i replied i will not take part as you will only use it to say agents have requested this new feature and then charge us for it!
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Could you spare me one of the 5 please Smile Please, I would be interested to have a look.
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Hello, I hope you’re well.
I wanted to let you know about some important changes that we’re about to start testing on Rightmove. We’ve created the following video that shows you what’s coming and our Commercial Director of Estate Agency, Jason Bushby explains below what the next steps will be.
If you have any questions, please feel free to let me know.
Jim Davies
Over half of our visitors now view your property listings on our mobile site and apps, so we’ve been creating new fully integrated mobile and desktop search results pages. This new technology and fresh design means your brand will see more than double the exposure on average.
The feedback from our early testing has been very positive so the next stage is to test the performance with a larger group of users. To do so we will be giving a random selection of visitors to the website the opportunity to try out the changes on Rightmove – a beta test. Before this happens we want you to be the first to see the new pages – take a look at this video to see how the changes could help improve the exposure of your brand and properties:
http://www.rightmove.co.uk/news/uncategorized/our-new-search-results-pages-designed-to-give-you-more-exposure
What will happen next?
For beta testing to be effective it will run into November when we plan to roll out the changes to everyone for both lettings and sales. We will continue to make small changes to the design, to further improve performance, until we’re happy that the new search results pages will give you the very best results. We’ll let you know ahead of time, before switching all users over to the new pages.
Please keep an eye out for your exclusive, advance link to the beta search results pages which we’ll be sending you in the next two weeks.
Kind Regards
Jason Bushby
Commercial Director
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Out of interest smile please did yours also say “your account manager was away”?
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Whats an account manager? 😉
No it did not, I only tend to see them when they try offering more products and want more money!
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haha indeed. I thought it was weird my cover email said “as your account manager is away” but hoped everyone had been told the same…… anyway, still trying to find a way to comment on a comment made below……. flabbergasted!
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We call the RM rep “Father Christmas” at our office because he comes once a year. Except he doesn’t bring presents, just asks us for 10-15% each time.
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And there’s the rub with RM….. useful technical/user developments….. and yet still playing agents off each other?
On their Intel system we rotate in top 3 agents and I see all the products/print-offs to enable me to go and shaft other agents based on my RM stats….. but forgive the Dinosaur in me….. we just do our thing and perform our own way….. I have no interest in building my business by stabbing others using stats.
So….. me? ….. a Dinosaur? …..yes, however it seems very clearly to be an approach that engages our clients and is successful!
From home last night, speaking to a client about an offer negotiated earlier that day…. £31,000 over the asking price…. employing the Dinosaur and not the Statistician delivered an outstanding result!
Mobile viewing experience developments are certainly welcome….. the backstabbing product development…. for me?….no thanks.
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WELL… I guess this conversation must have been had at some level…
Some big cheese or other – “So, chaps and chapesses – we need to keep the rabble happy – what will be our next tranche of ‘improvements’ we chuck at them before we hike their subs again?”
Senior Marketing Minion – “Well… we’ve looked at the latest developments in portal advertising and decided that we’re going to make the page look cleaner, load faster – and move all the search facilities up to the top of the page to maximise page width. We think it’s a brilliant idea and a fantastic innovation.”
Fantastic. Brilliant. Unlike Z, RM are taking the tack that the best form of attack is to simply mimic the enemy’s uniform.
Proves that imitation – even loose imitation – is the sincerest form of flattery… dunnit? ;o)
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Amazing how one line of text can make blood boil….!
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Wonder if it the same one that has upset me?
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and me… i mean honestly it’s Ian Dury not Drury…
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I think the other story as outed the line.
Someone with a quirky point of view out to discredit OTM
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Trolls in the forum….. in the meantime…..
7 New Instructions going live today …. onto our website and OnTheMarket.com first as that is where clients are now looking first. Browsers window shop with The Duopoly…. whilst re-educated buyers know where to look first. It took a few months to change the online current however the real buyers are now paddling in the right direction…… and this is a fact in my areas of business….. noting The Duopoly reps are resurfacing looking for a chat…. no doubt they have seen the change in online traffic to the 3rd Non Duopoly Portal!….. I have to use that term sometimes because of the New Portal Phobias that some folk on here have.
As The Duopoly diversify in their search for growth and profits they become less relevant.
OnTheMarket.com need to make some improvements however as said here….. Rightmove didn’t simplify to follow Zoopla, they did do to mimic the clean look of OnTheMarket.com
The only Dummies in this room are the ones that say another portal will or must fail because of The Duopoly?…… dream on!
I long for the day that we can rid this type of forum of non-estate agents who are not at the sharp end if our industry. Reasoned debate from fellow professionals and banter is worthy….. whether agree or not….. however The Trolls on here are making it a less interesting place to be…… noting that if they are spending time on here they are monumentally bothered!
Lets have a Troll Free Non Duopoly Day or Week and actually talk about estate agency and flush the Portal Talk to one side.
Firstly….. does anyone know a reliable For Sale Board Company in terms of erecting as the National Award Winning One, in our areas, has been woeful!…… I may be a Dinosaur however Real For Sale Boards still work fine….. no need for Touch-screen TV in gardens yet!
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“Re-educating buyers” <= do you realise you sound like a communist dictator?
And really, do you think anyone listens to you and doesnt use rightmove? come on….this is infantile.
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Harry Troll Hood.
That’s all.
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EAT used to be very good but it was infiltrated before EYE was born by the same Trolls who now post here. Unless you are using an email address to a Property Ombudsman registered estate agent, they shouldn’t be allowed to post.
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Really good point woodentop.
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Shouldn’t your name be Ribbentropp rather than Woodentop…what with you wanting to dictate who can and can’t post, and GPL ‘re-educating’ the public there are some worrying authoritarian tendancies on this site…
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The trouble with TROLLS they take up so much time spouting utter tosh. No one is saying one cannot have an opinion but one has to draw the line somewhere or we have anarchy.
Political Correctness is a doctrine, recently fostered by a delusional, illogical minority and promoted by a sick mainstream media, which holds forth the proposition that it is entirely possible to pick up a piece of **** by the clean end!
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Ooooohhhhhh this is getting way off track. Zoopla is expanding it’s services in an effort to compete and put up a a good fight to the new challenger – why wouldn’t you! but all I am seeing here is a lot of jibberish and personal gripes being aired.
I really hope that our industry benefits from competition, whether OTM makes it or not we do need more than 2 portals championing the services of Estate Agents.
The property industry has very challenging times ahead, the government is going to see to that. The last thing we need is the internal back biting and the professionals amongst us looking to hit the self destruct button.
Surely as an industry we need to pull together and explore every possible positive avenue in the hope we do hit upon something that actually benefits Estate Agency. Maybe OTM will help, maybe it won’t but flogging it to death before we know the answer is nothing but self destructive to an industry that is already struggling and has challenging times ahead.
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WOW!!! What a day…
Back (hopefully) to normality tomorrow, folks!
Nighty night.
GPL – when you wake up in the morning NONE of this happened and it is just another lovely posting day – okay?
;o)
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It was bound to happen. The “anti am” posters have finally imploded and run out of things to say. The likes they are giving themselves and dislikes for dislikes sake serve to further humiliate themselves so let them stay imo.
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