UK investment consultancy Jefferies claims property portal Rightmove ‘may go easy’ on increasing its fees to agent customers given the current state of the housing market, reports Estate Agent Today.
Analyst Anthony Codling has told investors that the UK’s housing market is in an unusual bind because there’s a shortage of stock to sell, but the usual ‘counter-cyclical’ movements of rents isn’t taking place.
“Rightmove’s model remains robust, but while its customers are in pain we suspect that it may choose to rub ointment rather than salt into their wounds” says Codling.
“We suspect that Rightmove may go easy on the ARPA [average revenue per account] increases over the next couple of years. While on the one hand it believes that by charging its customers more, it saves them money (by delivering efficiency gains), there is a balance to be struck” Codling added.