OnTheMarket CEO reveals what he thinks is the reason for half-year losses

OnTheMarket has experienced an uptick of its half-year losses, and it worries that the cause could be, in part, by the Brexit uncertainty taking its toll on the market.

The group reported pre-tax losses of £7.1 million for the six months to July 31, against £5.7 million a year earlier, but revenues lifted 14% to £8 million.

However, since the first half, it has seen tough housing market conditions hold back progress in signing up estate agents to long-term paying contracts – leading to a surprise warning over results last month.

OnTheMarket said it has now introduced lower-cost, shorter paying contracts, which are proving more appealing to under-pressure estate agents.

The flow of homes coming on to the market in September was at its weakest level in three years, according to the latest figures from the Royal Institution of Chartered Surveyors (Rics).

Rics found the number of new inquiries from buyers and agreed sales is also falling back, while prices remain flat generally across the UK.

OnTheMarket Chief Executive Ian Springett said: “The challenging backdrop of relatively weak and highly uncertain market conditions for agents has undoubtedly slowed our progress.”

He told the PA news agency that Brexit was the main culprit for the property market woes.

Springett said: “I can’t help but think it’s Brexit related.

“Therefore the key to getting moving again is a resolution, whichever way that pans out, so people have a bit more certainty.”

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