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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.
NEWSFLASH: Rightmove and OpenRent fail to agree terms
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