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Seismic change in the UK property industry is possible
The UK property industry has undergone significant changes with Rightmove becoming a dominant force, a reliance that extends not only to advertisers but also to service suppliers.
My experience in digital property advertising spans back to the early days of pioneers like Nick and James Leeming with their Propertyfinder, who were ahead of their time with their innovative ideas. Despite their efforts, Rightmove eventually became the leading platform, overshadowing early competitors such as Assertahome, Primelocation, and Homes On Line. This shift is particularly poignant as we witnessed portals like Primelocation and Findaproperty being absorbed by Zoopla, and even a National Association of Estate Agents portal that aimed to be free for members has seen us all becoming heavily reliant on Rightmove.
OnTheMarket has introduced some competition, but it has hardly shaken the strong hold of the Rightmove-Zoopla duopoly. This duopoly has resulted in steep subscription fee increases, with Rightmove's Average Revenue Per Advertiser (ARPA) skyrocketing from £500 in 2012 to £1,500 today. These fee hikes are 8% above the Retail Price Index and 6% more than the transaction price index, significantly impacting agents' commissions. The dependency on Rightmove is like an addiction for many agents, feeling it is a must-have despite the costs involved.
Additionally, many agents express frustration with Rightmove's treatment and policies. Innovations and alternative technologies are often dismissed by those who prefer to maintain the status quo, reminiscent of the famous saying by Steve Jobs about IBM. In our industry, it's similar with Rightmove—it's a safe, perhaps lazy choice that's hard to argue against.
Rightmove's platform, despite being an industry standard, remains largely unchanged as it was 15 years ago, except for minor tweaks. With a 70% profit margin, there is little incentive for investors to disrupt a successful formula. Legislative changes that were introduced in 2013 are only now being addressed by Rightmove with the addition of 13 new fields, although my analysis suggests that at least 200 new fields are necessary for keeping up with current demands.
This slow adaptation continues to hinder the industry's progress, stifling innovation and limiting the growth and adaptability of agents.
In conclusion, while Rightmove remains a cornerstone of the UK property industry, it's crucial to recognise and challenge its limitations. By fostering innovation and flexibility, we can encourage growth and adaptation, ultimately benefiting agents, service suppliers, and consumers. Just as food past its best-before date needs replacing, the old ways of the property industry must evolve to embrace fresh, innovative solutions that will ensure a dynamic and competitive market.
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