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Rightmove is facing a potential legal claim worth about GBP 1 billion (USD 1.34 billion) from estate agents who argue that the portal has been charging excessive and unfair listing fees. The action is being led by Jeremy Newman, a former member of the UK antitrust watchdog, and aims to represent thousands of agents unless they opt out. The development follows a recent drop in Rightmove's share price after it signalled slower profit growth next year due to increased investments, including those in artificial intelligence. Market uncertainty, inflation pressures, and an upcoming tax-focused government budget continue to weigh on the UK property sector.
Rightmove, the UK's largest online property listing platform, is facing the possibility of a legal claim estimated at nearly GBP 1 billion (USD 1.34 billion). The planned action has been initiated by Jeremy Newman, a former panel member of the country's competition authority, who intends to represent thousands of estate agents accusing the company of charging excessive and unfair fees for property listings. Agents will be included in the claim unless they choose to opt out. Advertisement
Rightmove confirmed receiving the notice regarding the potential lawsuit and maintained that it remained confident about the value it delivers to its partners. The company chose not to share further details. Its shares, however, experienced volatility, falling as much as 3.4% during the trading session and ending the day 1.6% lower.
Newman stated through his legal team that his intention is to secure repayment of what he described as overcharged fees and to address the imbalance he believes exists between the platform and the estate agents who rely on it. His planned action is being backed by Innsworth Capital, owned by U.S. hedge fund Elliott, and handled by Scott+Scott UK, with additional support from legal and economic experts including Kieron Beal KC and Kairos Economics. Elliott did not respond to a request for comment.
This development comes shortly after Rightmove's shares declined following its projection that profit growth could slow in the coming year due to increased investment commitments, particularly in artificial intelligence tools aimed at strengthening platform operations and improving buyer engagement. The company has been increasing spending to maintain its position in a competitive market that includes Zoopla and OnTheMarket.
Despite signs of renewed interest from prospective homebuyers in the UK, the broader market continues to feel the effects of inflation, cautious consumer behaviour, and uncertainty surrounding the government's budget expected later this month, which is anticipated to include tax increases. The mixed economic backdrop has added to pressure on property-focused businesses.
Earlier this year, Rightmove reported that users spent more than 80% of their total time on UK property portals on its platform during the previous year, amounting to around 16.4 billion minutes. This dominant position has long been a point of discussion among agents, some of whom have raised concerns over rising fees as the company increases its investments.
Source Reuters
5th Jun, 2025
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