City analysts at UBS have downgraded Zoopla to a 'neutral' recommendation from 'buy' citing that it remains threatened by OnTheMarket.
Against the trend of some recent developments, UBS says its ‘Evidence Lab’ research has revealed that OnTheMarket’s agency figures grew 6.8 per cent in recent months, ahead of Rightmove's 1.1 per cent and Zoopla's 0.7 per cent.
"We maintain our view that OTM is unlikely to be a major long-term player, but remain for [sic] the number two player Zoopla, which has been more impacted since OTM's launch" says UBS.
UBS says Rightmove's market leading position remains strong with agency growth, app statistics and recent report to the City supporting this view.
"Overall, we see the launch of OTM as having actually strengthened the position of Rightmove by making it a stronger number one in the segment, with Rightmove now having circa 65 per cent more properties listed for resale than Zoopla" says UBS.
UBS warns that Zoopla "continues to show no sign of a significant recovery in agents" - it says in the first quarter of 2016 Zoopla saw agent growth of 3.3 per cent compared to OTM's growth rate of 18.5 per cent.
.png)
.jpg){kind=logo}
.jpg)
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
.png)
.png)
.png)
%20(002).png)
%20(002).jpg)
.png)
Join the conversation
Jump to latest comment and add your reply
I wish someone would take OTM on. They don't have a leg to stand on:
- agent signs up pre-launch on the promise that by doing so they will be guaranteed the best rates (and this is confimed in writing on page 4 of the Information Memorandum included with their contract documentation)
- they pay months of subscription for pretty much nothing (despite assurances that OTM will be No.2 by January 2016) PLUS they invest hundreds, if not thousands, in helping develop the thing
- OTM then launches and starts signing up agents at 20% of the original launch rate card completely ignoring the price promise that they made to thousands of agents who funded the thing
There is absolutely NO CHANCE that OTM will want this to get to court so I hope someone takes them on, refuses to settle and takes them for costs, their investment, all paid subscriptions to date.
It would only take a few of these and the thing will implode and agents can get on with dealing with the real issues of the day.
Oh, and the NAEA is keeping pretty quiet here. Given that they sit on the OTM board and would have sanctioned the suing of so many of their members, would it be reasonable to expect some sort of comment?
Of course not James!! I am quite appalled you think it should be reasonable!!
More stating of the obvious, no? Rightmove remains incredibly strong, Zoopla remains very firmly in second place and OTM is quite clearly not a long-term major player. Tell me something I didn't know!
"Overall, we see the launch of OTM as having actually strengthened the position of Rightmove by making it a stronger number one in the segment, with Rightmove now having circa 65 per cent more properties listed for resale than Zoopla"
This is the crux of it, and exactly what OTM didn't want to do. They've turned the duopoly into a monopoly. By weakening Zoopla they've strengthened RM, who can now charge whatever fees they like because most agents know full well that they simply have to list on them. They're too big to be ignored. The RM bigwigs will know this very well.
They have become bigger than the property industry. They don't need agents as much as agents need them. I think that's what (understandably) irks agents so much, but I don't think OTM is going to provide the answer to that particular problem.
yes OTM has been a great marketing tool for Right Move - I don't think any campaign they could have launched would have served them better
Please login to comment