BREAKING NEWS – top 5 stories 26/02/2021

Estate Agent Networking Breaking News

BOOMIN STARTS ITS WAR OF WORDS WITH RIGHTMOVE

Michael Bruce one of the founders of Boomin has launched a scathing attack on Rightmove, focusing on its strategy of not reinvesting in technology to push the envelope and evolve the portals model, he also drew attention to the upward spike in cost for the agents.

Commenting that, ‘Based on the average annual fee hike of the last ten years, agents could be paying some 60 per cent more than their recently increased prices by 2024. On the same methodology Rightmove would be coining in some £385m in annual profits … Well consider that in 2010 … Rightmove’s average revenue per advertiser ARPA per month was £379 and their profits £57m. By 2019 this had increased to average agent fees of £1,088 per month and profits spiked nearly fourfold to £220m.’

For sure the gloves are now off.

RIGHTMOVE PROFIT LEVEL FALLS TO 60%

Annual financials for Rightmove show that the turnover figure reduced from just under 290M to 213M, impacted of course by a four-month period where fees to agents were considerably reduced during Lockdown 1.0. The net affect was that pre tax profits that had been running at 74% year on year from 2916 to 2019 fell.

In a pandemic world a 60% profit margin is still a triumph, but although the amount of site traffic was up, again due to everyone being at home, the number of transactions lettings and residential was in fact similar to pre-pandemic times, indicative that 90% of visitors to the site are browsers rather than ‘doing anything.’

CONNELLS BUY IN OF COUNTRYWIDE GETS CLOSER

The UK Financial conduct authority has approved the Connells acquisition of the assets of Countrywide PLC. The next hurdle is the Completion and Markets authority, though with the size of the new animal likely to be well under the level that would cause a problem, it looks like very soon the biggest agency in the UK will now be born.

WILL THE CHANCELLOR LOOK AT TAXING ALL PROPERTY?

There have been new signs that although the Chancellor may extend the SDLT holiday, he may also look at a new taxation system that touches those who have a second or more property. This was first discussed in Q4 of 2020. For sure the Chancellor has a difficult tightrope to walk, keeping the steam in the market, and yet extracting maximum taxable revenue, for some Wednesday the 3rd of March – mini budget day can not come soon enough.

FAKE NEWS

Yesterday Zara my co-director pointed out that the ‘three month’ extension to the SDLT holiday due to end on the 31st of March was not a done deal. Despite many newspapers and many media channels proclaiming this to be the case.

In the present post-Trump world, it amuses Zara that perhaps the media and especially social media seems to be leading the narratives and the decisions, of our directly elected representatives in parliament. She also asked if Rishi would he be reducing taxation on sausages? I said it is unlikely, but we can always hope.

Andrew Stanton

CEO & Founder Proptech-PR. Proptech Real Estate Influencer, Executive Editor of Estate Agent Networking. Leading PR consultancy in Proptech & Real Estate.

You May Also Enjoy

Breaking News

Popping the Asking Price Bubble

Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price   New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More
Rightmove logo
Breaking News

Highest demand to lease office space since pre-pandemic

The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More
Planning disputes on new build land
Estate Agent Talk

Planning consultations for major infrastructure to be streamlined

Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More
Breaking News

‘The property ladder pulls further away’ warns Open Property Group

For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More
Estate Agent Talk

How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase

Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More
Love or Hate Rightmove
Breaking News

Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings

Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More