Agent challenges 25% hike in Rightmove costs after portal itself identifies town as a faller

High-profile agent Trevor Kent is complaining to Rightmove that his subscription is being hiked 25% – when his own town has just been identified by Rightmove itself as the third biggest faller in the property market.

The latest Rightmove house price index names Gerrards Cross in Buckinghamshire as a former hotspot which is now a cold spot: it said new asking prices have fallen by 6% in a year.

Only Rickmansworth and Esher are said by Rightmove’s director Miles Shipside to have had higher asking price falls.

Kent wrote complaining to Shipside about the 25% rise in Rightmove costs due on January 1, while apparently knowing about the town’s tough market.

Shipside responded by asking whether prices had re-adjusted enough to attract buyers back, and inviting Kent’s opinions.

Kent replied by telling him that he has been in estate agency since 1971.

He said he had experienced three crashes since but “I have never known a market so bad as the last two years”.

He said Stamp Duty and Brexit are both factors, while the market for Londoners looking for family homes with gardens outside the capital “died when their sale valuation figures dived by 15%”.

Kent said: “So applicants are in short supply, viewings are down, offers (when made at all) are received with derision and the upshot of all this is agents closing in Gerrards Cross and others (including me) teetering on the brink of closure as we fail to cover our costs.”

Kent, a former president of the NAEA, runs one office.

Shipside has thanked Kent for his market report.

He said: “Interestingly there are some good examples of high service and higher fee internet agents that appear successful.

“Our consumer research tells us that differentiation is key to stand out, so you are well placed on service and reputation, and I would hope Rightmove would be part of your streamlined but quality offering.”

Kent told EYE he is still hopeful of negotiating his subscription cost with Rightmove to below the 25% hike.

* Separately, Rightmove was named yesterday as the second most profitable FTSE 100 firm for its investors. The Mail on Sunday highlighted research by AJ Bell, which listed firms with at least ten years of dividend growth.

It found that if someone had invested £1,000 in Rightmove in 2008 and reinvested the income received ever since, their investment would now be worth £27,873. Only rental equipment company Ashtead did better. Rightmove shares moved up 1.2% on Friday to 433p.

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35 Comments

  1. Property Poke In The Eye

    Agents need to stop moaning and come off Rightmove.

    Without agents property, rightmove is dead.

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    1. J1

      Are you striking PPITE?

       

       

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      1. Property Poke In The Eye

        J1, we came off Rightmove when the sales rep got a bit lippy with us and said our attitude wasn’t right.  Meaning we wasn’t taking their c**p add on products (premium listing, banner, mirco sites etc) which we fully tested for many years and didn’t bring in the results to the extra we were spending, PPC gives us a better return.
         
        So we have already made our move.        

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        1. J1

          Brilliant

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  2. Jonty73

    Mr Kent sadly falls into the category of many agents across the country – woe is me and it’s all Rightmove’s fault – yes Rightmove are a law to themselves, but how many of us have listed a property on Rightmove, done very little work but taken the full fee – we have to give Rightmove some credit as many wouldn’t have a business or revenue without it.

    He operates in an incredibly wealthy and popular location that has an average fee well above the national average and a wide reach in terms of area.   I think there is a bigger underlining issue that the PR savvy Mr Kent is overlooking and would suggest that he takes a long hard look at his business which doesn’t appear to have moved with the times – just look at their branding, office and more crucially website (which has seen better days).   The public make a choice and clearly in his market place others are doing it better and shaping their business and brand to one that the consumer wants to engage with.    Get on the case fast and address the basics and if you can get a reduction on your Rightmove fees then he is one hell of a negotiator and that should be his campaign for why vendors want him acting for them.

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    1. Robert May

      The consumer? who is  that?. The people looking to buy the properties Mr Kent lists or those that recognise the consistency  if his agency and his branding and instruct  him to sell their property?

      Mr Kent and all the other agents  like him are in the business of winning instructions, it is the familiarity of years and years of success that is reinforced with every sold board he erects that give vendors the confidence to instruct him and pay his fee.

      Mr Kent has been doing this a very long time and ought to have confidence that if he wins instructions his buyers will find him.

       

       

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      1. Jonty73

        Maybe his ability to win those instructions isn’t what it was.   Clearly the sellers who have chosen to appoint another agent have made a choice based on many factors!!! 
         

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        1. Robert May

          Election Brexit Election  Brrrrrrrrreeeeeexxxxxxxiiiiiiiiiiiiiiiit isn’t something any agent has control over, contracting prices are a sign of contracting demand.
          Unless you’re an agent that takes a listing irrespective of whether it is saleable or not, taking on  unsaleable instructions is simply daft. I think the point of the story is that Rightmove see agents as sacrificial cash cows rather than as customers who should be shown some loyalty and helped through a difficult market rather than Mr. Kents ability as as an agent.

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        2. surrey1

          Think you’ve rather missed the point here. Trevor, like many of us in London and the South East, are having a ****** hard time of it as volumes have contracted. Across the board. It somewhat irks when Rightmove are ramping up their costs by 25% for nothing extra, in fact less, given the cost per lead is so much higher. No Rightmove are not responsible for the market, yes they are responsible for kicking a man when he ‘s down.

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          1. Robert May

            I don’t think I have missed the point, for the past 3 years I have been specifically making that  point.

            Those who were at the Guild and the Fine and Country conferences last January heard that point being made for me. My tweets have been reinforcing the point and  my own subscription model is based on the fact that  it is possible to provide a service at a rate that ebbs and flows with house prices.

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            1. surrey1

              Not you, Robert. Jonty. 

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              1. Robert May

                Sorry Surrey

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  3. Blue

    I wonder how many agents, if they had the same clout as RM in their own market, would take it easy on their clients.

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    1. rsvstu97

      Irrelevant reply that adds nothing to the debate.

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  4. J1

    Have the single office independents got this wrong??? All wrong???

    Its just a question so don’t shoot me.

    Are RM actually slowly eroding the huge discount that the regional and national agents have enjoyed for far too long?

    If it is then surely it is the right thing for RM to do!!!

    Perhaps this is what Mr Kent is complaining about?

     

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  5. SLF

    Kent said: “So applicants are in short supply, viewings are down, offers (when made at all) are received with derision and the upshot of all this is agents closing in Gerrards Cross and others (including me) teetering on the brink of closure as we fail to cover our costs.”

    What a lovely positive sales pitch for any prospective seller. With that much negativity I’m not surprised he’s struggling!

    Looking at their website and facebook page I’d say he needs to take a very close look at his company’s marketing and presentation. All very bland uninspiring at the moment.

    However he does have a very good point about Rightmove’s price hikes. They really are taking the p**s and are showing themselves to be a company with no care at all for the financial difficulties, anxieties and stresses that their fees are causing the very businesses that keep them going.  BUT, Trevor like any other agent who can’t go a day without moaning about Rightmove has a choice. Stop paying them and go with OTM. It’s that simple…….but clearly not as much fun as bashing them.

     

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  6. GPL

    Dear Miles Shipside,

    Estate Agents don’t list properties for sale because of Rightmove, you are merely an advertising tool ….although you do play a clever game of playing agents off each other with your various “tools”.

    Your intransigence/disregard towards Estate Agents/your Subscribers is echoing loud & clear in this statement and others you have made.

    It’s your call to continue to ignore your subscribers and pretend that Rightmove is worthy of its Automatic Annual Increase Policy ….Rightmove has lost the plot, and weekly it continues to lose the support of its subscribers.

    The problem is Miles, you are now sooooooo high in your ivory tower you can’t see all the way down to those estate agents/letting agents who are bearing the brunt of your blind annual increase policy.

    The iceberg is looming large on the horizon Captain Shipside …….can you see it? No you can’t …..because you just keep looking the other way.

    Shameful behaviour – unjustifiable Annual Increases by Rightmove. Experts may well look back and note that you built Rightmove …..and then broke it by biting the hands that feed you!

     

     

     

     

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  7. Chatty Cathy

    CONGRATULATIONS most ridiculous comment of the year goes to Robert May

    ‘Mr Kent has been doing this a very long time and ought to have confidence that if he wins instructions his buyers will find him.‘ 

    I’ll try that on our next valuation ‘Don’t worry about the right buyers, they’ll find us’

    I think Robert needs to spend less time on here setting the world straight and give his customers the service they’ve been promised. I’m sure you’ll be posting a snide little comment telling me I don’t know what I’m talking about but I won’t see it until tonight as I’m off to do some actual work.

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    1. Property Ear

      A bit too Chatty Cathy – Robert has been giving his customers the service they’ve been promised for years AND enhancing this daily journal with the most articulate and meaningful contributions.

      If he were to rise to your bait, but I doubt he’ll bother, I’ll beat him to it – You don’t know what you’re talking about!

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    2. Robert May

      I don’t do snide comment Cathy but the I do treat people with the respect or lack of respect given to to me. If your understanding of agency doesn’t allow you  to comprehend that an agent’s job is to win profitable, saleable instructions you’re probably wondering why all of the experienced agents, partners, directors and CEO’s who also read Eye aren’t ridiculing that comment. Property industry Eye is a forum for agents and service suppliers in a very competitive industry that’s going through a very difficult and pressured time, its unlikely a ridiculous comment would survive long on here  Unlike many service suppliers I post my own opinions using me own name and so I’m judged on everything I post.  My customers see what I post on here and because I’m supportive of their business and my comment beneficial to their business, that’s  generally why they are my customers.  
       
      Trevor Kent needs Rightmove as much as he did 30+ years ago    

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      1. Chatty Cathy

        My point Robert was how silly your comment was and then went on to point out that anyone who isn’t in your little gang on here just gets shouted down.

        One word, bully.

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        1. Robert May

          I’m not sure you understand that if someone stands up to an aggressor its not them who’s being the bully.

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  8. WiltsAgent

    Come on Trev, grow a pair and tell them to shove it!

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  9. dave_d

    Any agents on here removed brand plus? Has it had any affect on your business?

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    1. surrey1

      Yes and none whatsoever.

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    2. Chris Wood

      Yes, and none whatsoever (also)

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  10. cyberduck46

    I’m sure Mr. Kent’s high street competitors would be quite happy to take his listings from him if he can’t afford the RM fees.

     

    RM speeding up the process of natural selection perhaps?

     

     

     

     

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  11. Harry Albert Lettings Estates

    We always seem to get more, better quality tenant leads than we ever have on Rightmove or Zoopla by actively going out and doing what we’re paid for when asked to find tenants. We go out and find tenants, we don’t wait for tenants to find us…

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  12. GPL

    Here’s the thing….. as more agents have moved to Basic No Frills Listing with Rightmove we then witness Rightmove moving those basic costs up to make up the shortfall?

    So, the Cheeseburger with Fries was £2 …..however, now you want a Cheeseburger only that’ll be £2.50?!

    Rightmove are no longer The Pantomine Villian ….they are much, much worse than that!

     

     

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    1. rsvstu97

      Thats exactly what they did to my brothers four offices. Those that defend RM obviously think that is acceptable behaviour which might say volumes for their own practices.
       

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  13. GPL

    Imagine if this was an OTM slogan…..

    “ Fed up with Rightmove? Change your future ….Join OnTheMarket “

     

     

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  14. jeremy1960

    It’s about that time of year when the Rightmove sales rep asks to come and see me and I give the same answer as I have for the past 10 years – “only come and visit me if you have a plan to reduce the amount that I pay to Rightmove!”

    As yet, not seen a Rightmove rep in 10 years!

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    1. rsvstu97

      Do what i did. Have the courage to give them notice. Not when you get the price hike as thwy knoq you’ll be remorseful when youve calmed down. Do it now. 
      All i will say is fortune favours the brave.

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  15. Thomas Flowers

    How many others have had their RM fees hiked by 25%?

    Trevor has always voiced his support for the small independent agent.

    Perhaps, this may be a case of un-natural selection Cyberduck?

    If need be, I wonder how RM could justify this increase?

    What does the average small one branch independent now pay per listing compared to PB or corporate agents?

    Does this need exploring further to ensure that RM’s dominant market position is working fairly for all their customers?

    Would it be anti-competitive to charge a small no sale, no fee estate agent vastly more per listing than a pay anyway agent?

    If not, why not?

    Perhaps, the CMA would like to urgently clarify this?

     

     

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    1. dave_d

      Anyone know the minimum costs to advertise with Rightmove now? I’ve been given some costs from my account manager this morning but would like to know if they’re just making it up

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