The UK's Office of Fair Trading says more innovation is needed in the home buying and selling process, as the housing market remains dominated by traditional estate agents with weak competition between them on price.
In its market study, the OFT argues that innovation, particularly through online services, could have a dramatic impact on the cost of buying and selling a home.
Tesco was rumoured to be moving into property listings through a deal with real estate agency chain Spicerhaart as early as October last year. telegraph.co.uk states listings could be added "within weeks" and says home owners would be able to list their properties for a flat fee of around £200.
A Tesco spokesperson told telegraph.co.uk:
"We welcome the OFT’s conclusion that legislation can be updated to make it easier for new entrants to service customers and that a 'recognised and trusted brand', such as Tesco, entering the market would allow for greater competition between online services and traditional estate agents, to the benefit of the consumer."