OpenRent, a popular choice among landlords for listing rental properties, will soon be absent from Rightmove’s platform, starting 1st September 2024. This development comes as negotiations between OpenRent and Rightmove regarding listing fees have come to an unsuccessful conclusion, according to a statement released by Rightmove this morning.
Breakdown in Negotiations
Rightmove announced this morning that despite lengthy discussions, the two parties could not agree on the financial terms for continuing the partnership. This development comes weeks after OpenRent preemptively removed the Rightmove logo from its homepage, hinting at the strained relations between the two entities.
Rightmove’s statement explained the situation: “OpenRent is classified as an online lettings agent within Rightmove’s Estate Agency (Lettings) sub-segment and represents approximately 700 branch equivalents, with less than 8% of Rightmove’s lettings listings in July 2024.”
Financial Implications
The separation is expected to have a notable impact on Rightmove’s business metrics, which are closely monitored by investors. Rightmove anticipates a potential decline in membership by up to 3% year-on-year, although it expects an increase in Average Revenue Per Advertiser (ARPA) of £90-£100.
“Market dynamics within lettings are particularly fluid. While we remain confident of delivering revenue and margin in line with guidance, the precise mix of membership and ARPA may vary,” Rightmove’s statement added.
Impact on Landlords and Market Competition
This development is set to disappoint many landlords who have relied on OpenRent’s cost-effective model to access Rightmove’s extensive property-seeking audience without the intermediary costs of a traditional letting agent. OpenRent users benefited from the ability to manage their own property listings directly, including taking their own photographs and conducting viewings.
With the change, OpenRent’s landlord customers will lose access to what is considered the UK’s largest property-seeking audience, potentially pushing them to seek alternatives or revert to more traditional and costly letting solutions.
