"Are You a CEO, Director, or Founder interested in a Feature Interview?"
All Interviews are 100% FREE of Charge
Analysts say the split between Rightmove and Open Rent will provide a valuable test case for the impact on estate agents who choose not to list properties on the portal.
The split was approved on Tuesday after the two companies failed to agree on deal terms, resulting in OpenRent, which made up around 8% of Rightmove’s rental listings, withdrawing from the site.
Rightmove assured that the demerger would not affect its full-year financial outlook and highlighted its position as the UK’s largest rental property portal.
Analysts at investment consultancy Panmure Liberum believe OpenRent’s independent actions could provide important insights for other estate agents. “OpenRent will be a good test case for this,” they note, adding: “One argument that is often made is that if estate agents don’t advertise on Rightmove, they find it difficult to get commissions.”
Panmure Liberum added: “It’s worth noting that Open Rent is positioning itself in the market as an ultra-low-cost, ‘almost do-it-yourself’ approach to renting, which will likely help maintain the company’s value proposition to landlords.”
UBS forecast that the removal of OpenRent from Rightmove’s platform would reduce revenue by £1 million this year, rising to £3 million in 2024. Although judged to be “largely immaterial”, UBS adjusted its valuation for Rightmove, lowering its new target price to 760p from 782p.
Breaking news: Rightmove and OpenRent fail to agree terms
Daily news emails from EYE
Enter your email address below to receive the latest news straight to your inbox every morning.
Author
"Elevate Your Brand with an Exclusive Feature Interview!"
