Rightmove’s itemizing charges can account for as a lot as 13.5% of an property company’s common gross sales fee, in response to new evaluation – highlighting the rising price pressures dealing with brokers as they steadiness advertising and marketing spend with tighter revenue margins in a slowing housing market.
The evaluation discovered that whereas the proportion varies relying on department measurement, location, and gross sales quantity, Rightmove stays one of many largest prices for a lot of property businesses.
On common property brokers throughout Britain are paying 7.2% of their gross sales fee to Rightmove, with brokers in Glasgow and Newcastle taking the most important hit from the property portal market chief.
The Property DriveBuy, which carried out the analysis, in contrast the estimated common gross sales fee of an property agent in Nice Britain with the common month-to-month payment paid to promote with Rightmove to see what quantity of their earnings brokers are having to present to the portal big.
With a mean property worth of £275,923, and a mean company payment of 1.4%, the common British agent is incomes a fee of £3,918 per property bought. With the common department promoting 5.4 properties per 30 days, this equates to a complete month-to-month fee earnings of £21,158.
In the meantime, the common income obtained by Rightmove for every advertiser, or agent, stands at £1,524. As such, brokers in Britain are giving Rightmove 7.2% of their fee, with brokers in some elements of the nation paying a considerably bigger chunk of their earnings to the portal.
Brokers in Glasgow are being hit the toughest. A low common home worth of £190,165, and a low common payment of simply 1.1% means the common month-to-month fee stands at £11,296. Rightmove’s charges, due to this fact, account for 13.5% of earnings.
It’s an analogous story in Newcastle the place brokers are giving Rightmove 12.4% of month-to-month fee, adopted by Liverpool (10.8%), Edinburgh (9.5%), Cardiff (8.7%), Manchester (8.7%), and Birmingham (8.7%).
London, nonetheless, is an outlier. A mean property worth of £565,567 creates an median month-to-month fee earnings of £51,919 for brokers within the capital. As such, Rightmove’s charges account for simply 2.9% of earnings, says The Property DriveBuy
Rightmove’s charges have lengthy been some extent of competition and frustration for Britain’s brokers, and that is solely exacerbated by the truth that the portal retains growing its calls for. In 2022, the common annual Rightmove payment stood at £15,768 earlier than rising to £17,172 in 2023. Then, 2024 noticed an additional improve of 6.5% to deliver the common annual price to £18,288.
Steve Foreman, founder and CEO of The Property DriveBuy, commented: “It’s clear from our analysis that many brokers are paying a disproportionate share of their hard-earned fee to Rightmove, notably in areas the place property values and costs are decrease. At a time when working prices are already underneath strain, this mannequin feels more and more unsustainable for unbiased brokers.”
