In a not so surprising move, Globaledge reported today that rightmove.co.uk will be taking private advertisements from overseas sellers.
It was reported that rightmove.co.uk will be charging GBP250 for a three month advertisement. This is sizably more expensive than the current all you can eat subscriptions UK estate agents purchase.
The question this raises is will they open up the site to private sellers in the UK? My view is that they wont.
Firstly, the UK market is already paranoid enough about rightmove.co.uk and anything they do that is perceived as helping direct competition with their core UK estate agent customer base wouldnt be worth the pain it would cause them.
Secondly, this is realistically a small market versus the core estate agent market and therefore probably not really worth going after.
I think that this is a good move for rightmove.co.uk as it further opens up opportunities in the overseas market and allows them to capture additional revenues that arent available to them today. Any revenue captured from an overseas market is revenue that is not coming from the UK estate agents.
The other question that is raised is even if they did take private ads, does it really matter? I also dont think it does. domain.com.au in Australia has been taking private advertisements for years and this hasnt effected the use of them by agents. In Austalia domain.com.au charge GBP200 for just 28 days. The real issue is political and there in lies the challenge.