Rightmove’s share price has declined 10% over the past week as the property portal faces criticism from estate agents over proposed fee increases of up to 18% for 2025.
The company’s shares have fallen to approximately £4.45, representing a 45% decrease over six months and a 13% drop in the past month alone. This compares to a share price of £6.68 recorded one year ago.
Agent concerns over fee increases
Independent estate agents have expressed concerns that the proposed fee increases could threaten their business viability. Debbie Walley, Director at Winterbrook Estates in Wallingford, Oxfordshire, wrote to Rightmove stating that the fee hikes put her business at serious risk.
“We are a small, independent estate agency operating in a small town, competing with over seven other agents. To stay afloat, we have already been forced to cut costs and reduce staffing,” Walley wrote. “We now face the real risk of going out of business.”
Investment plans impact profitability
The portal’s share price experienced a significant decline in November following a trading update that revealed plans to invest £60 million over three years in artificial intelligence and product development. The investment is expected to impact near-term profitability.
Rightmove has forecast revenue growth of 8-10% and profit growth of 3-5% for the current year as it progresses through what the company describes as an “investment phase”. The company stated that the additional spending would support “double-digit profit growth” in subsequent years.
Legal challenge
The company is also facing a collective legal action led by Jeremy Newman, a former Competition and Markets Authority panel member. The action seeks to recover what claimants describe as “excessive and unfair fees” on behalf of participating estate agents, with potential claims reaching £1 billion.
The combination of agent dissatisfaction, legal challenges, and increased investment spending has contributed to downward pressure on Rightmove’s share price, raising questions about the sustainability of its pricing model and its relationship with the estate agency sector.
