Rightmove and OpenRent’s breakup will serve as a valuable test case for the impact on letting agents who opt not to list properties on the portal, according to analysts.
The split was confirmed on Tuesday after the two companies failed to agree on contract terms. As a result, OpenRent, which accounts for approximately 8% of Rightmove’s lettings listings, has departed from the site.
Rightmove assured that its full-year guidance remains unaffected by the breakup, emphasising its status as the UK’s largest rental property portal.
Analysts at investment consultant Panmure Liberum believe OpenRent’s independent move could provide significant insights for other agents. “OpenRent will now serve as a good test case for this,” they noted, adding, “One argument frequently trotted out is that agents struggle to win instructions if they do not advertise on Rightmove.”
Panmure Liberum added: “It’s important to note OpenRent’s positioning in the market as an ultra-low-cost ‘do most of it yourself’ approach to lettings, so likely this helps them maintain their value proposition to landlords.”
UBS projected that the loss of OpenRent from Rightmove’s platform would result in a £1 million revenue hit this year, increasing to £3 million in 2024. Although deemed “largely immaterial” UBS adjusted Rightmove’s valuation, setting a new price target of 760p, down from 782p.
I repeat – Agents are setting themselves up for a fall. By paying Rightmove, they are inadvertently helping to promote a platform for consumers, landlords, and private sellers using the paying agents’ own stock. I’ve heard that Rightmove is preparing to offer services similar to OpenRent for private landlords. They already offer referencing services and are moving step by step towards independence. Once agents realise they don’t need Rightmove anymore and leave, Rightmove will have become their main competitor. It seems likely that they will eventually become an online sales agent for private properties, much like Autotrader is for car sales, all with the support of the current paying agents. Who are these fools? Well done, OpenRent.
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This isn’t a test case for some of us, where we are lettings only quite a few of us sacked them off years ago!
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Openrent account for 8% of stock of Rightmove Lettings?
I know lettings agents who use Openrent for their clients stock. So that 8% figure is not correct.
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Rightmove, Zoopla and OTM need to ban all private landlords advertising via Openrent. That way agents get the business who can offer landlords a proper professional service.
Only then, can portals justify their fees.
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OTM doesn’t allow online agents, and with Rightmove soon permitting landlords to advertise directly on their platform, it’s clear they don’t see the need for OpenRent. This suggests that Rightmove is preparing to offer a similar service themselves.
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