Rightmove raised a few eyebrows last year when it rejected multiple takeover attempts from Rupert Murdoch-backed REA Group, with the final bid in excess of £6bn.
Rightmove said its board carefully considered each of the offers from REA Group but decided they “fundamentally undervalued” the property website and its future prospects.
Six months later and something has changed at Rightmove – “and not in a good way for agents”, claims Shaun Adams, the owner of Preston-based estate agency, Cooper Arms.
Cooper, who is leading a campaign against Rightmove and the ‘high’ listing fees that they charge estate agents, suggests that the property portal could be fattening itself up for a takeover – at the expense of estate agents.
“Over the past few months, there’s been a noticeable change in how they’re operating,” he said. “Fee increases are coming in hard and fast, with little to no room for negotiation. Even the large agents who once had a bit of leeway are now being met with a firm “no” – take it or leave it.”
It is not just about pricing, either, according to Adams.
He continued: “There are strong signs of internal cost-cutting, possibly through staffing reductions or streamlining operations. Combine rising revenue with lower costs and you get the clearest signal yet: Rightmove is boosting its short-term profits. But why?
“Back in early 2024, Rupert Murdoch’s REA Group – backed by News Corp – made a £6.2 billion offer to buy Rightmove. It wasn’t their first attempt, and it likely won’t be their last. Although Rightmove’s board rejected the approach, the timing and recent shifts in strategy suggest they may be preparing themselves for another bid – one that shareholders may find harder to resist.”
Adams, who recently appeared on BBC Radio 5 to discuss Rightmove fees, argues that Rightmove is adopting a “fattening the cow” tactic as a “classic” pre-acquisition move: “drive up margins, cut back costs, and polish the numbers to raise valuation”. But he adds,”there’s a problem”.
“While shareholders might welcome the boost, it’s agents who are being made to pay for it,” he explained. “The very businesses that helped build Rightmove’s dominance are now being squeezed harder than ever – forced to accept higher fees with less support, less flexibility, and less value.”
“What we’re seeing isn’t long-term platform development or investment in innovation,” he added. “It’s short-term dressing for a bigger payday – one that benefits the few, while putting even more pressure on agents already working with tight margins.
“When a platform forgets who its real customers are, trust breaks down. And once that’s gone, no amount of valuation is going to bring it back.”
Unhappy with your Rightmove fees? Adams has launched a new platform for disgruntled agents, www.portalfeescandal.co.uk
Rightmove has been approached for comment.
