Rightmove is facing a £1 billion collective legal action from thousands of UK estate agents who claim the property portal has abused its dominant market position by charging excessive and unfair listing fees.
The action, expected to be filed imminently, is being led by Jeremy Newman, a former member of the Competition and Markets Authority (CMA) panel, who will argue that Rightmove has “exploited its dominance” in the online property listings market to impose inflated subscription prices on estate agents.
Newman’s case – backed by litigation funder Innsworth Capital, law firm Scott+Scott UK LLP, barrister Kieron Beal KC of Blackstone Chambers, and economists from Kairos Economics – is being brought on an opt-out basis.
Any estate agent that has paid fees to Rightmove in the past six years will automatically be included in the claim unless they choose to withdraw.
MOST PROFITABLE COMPANY
According to its 2024 accounts, Rightmove operates with a profit margin of around 70%, making it the most profitable company in the FTSE 100.
The claim estimates that the damages arising from the alleged overcharging could total around £1 billion.
Newman says: “Rightmove knows that, due to its first-mover status, its product is considered a ‘must-have’ for estate agents.
“It exploits its dominance of the online property portal market in the UK to charge excessively and unfairly high subscription fees, both at face value and when compared with its competitors. Estate agents have had to absorb consistent, excessive price increases on a regular basis.
“My case will seek to return the overpaid fees to estate agents across the country and to rebalance the relationship between Rightmove and the agents that use its online property portal.”
LEVEL PLAYING FIELD
Ian Garrard, managing director of Innsworth Advisors, said the claim was about “levelling the playing field for businesses up and down the country” and deterring anti-competitive behaviour.
“Without the opt-out collective actions regime, it would be much harder – or even impossible – for SMEs to seek redress for anti-competitive behaviour,” he says. “As a result of Innsworth’s funding, businesses within the class will not have to pay a penny towards the claim.”
Rightmove’s dominance in the UK property portal market has been a frequent source of controversy.
The company, which says that “over 80% of all consumer time spent on UK property portals” is on its site, has long faced criticism from agents frustrated by rising subscription fees.
PORTAL BOYCOTT
In February, a petition calling for the CMA to investigate Rightmove’s market power attracted thousands of signatures, while online groups campaigning for a boycott of the portal have gained significant traction among agents.
Earlier this month, Rightmove’s shares fell after it reaffirmed its 2025 profit guidance and announced a major investment in artificial intelligence.
Rightmove said: “Rightmove has received notice of a potential claim. We’re confident in the value we provide to our partners. Further updates will be provided as appropriate.”
