Rightmove Faces £1.5 Billion Class Action — And Your Housing Costs Could Be Why

The UK’s biggest property website is being sued for nearly £1.5 billion — and if you’ve ever bought, sold, or rented a home in Britain, you’ve probably paid the price.

The Headline

Estate agents are launching a massive class action against Rightmove, seeking just under £1.5 billion in damages for what they call “excessive and unfair” subscription fees. The claim, filed in the Competition Appeal Tribunal, alleges Rightmove has “abused a dominant position” in the online property portal market.

Accountant Jeremy Newman — a former Competition and Markets Authority panel member — is leading the case on behalf of potentially hundreds of estate agents.

The Numbers Don’t Lie

Rightmove’s financial position is extraordinary:

• ~70% profit margin — one of the highest in the entire FTSE 100
• ~80% market share of time spent on property portals
• Estate agents report fees have more than doubled in 7 years
• Some agents are paying over £5,000/month for basic membership

As one agent put it: “You don’t have to sign up but it feels like I’m pushed into a bit of a corner with my customers expecting me to use it.”

Why This Affects You

Here’s the chain: Rightmove charges estate agents unsustainable fees → agents cut staff and raise their own fees → those higher costs get passed to buyers, sellers, tenants, and landlords.

Newman spelled it out directly:

“Estate agents are having to employ fewer people because they can’t afford them alongside their fees to Rightmove. As a result, their services can’t be as effective.”

If you’ve noticed estate agent service declining while their commissions creep up — this is part of why.

Rightmove’s Response

Rightmove says the claim is “without merit” and they’ll “defend it vigorously.” Their argument: the platform provides “growing value” with “constantly evolving products and features.”

But agents tell a different story. Many say they’re absorbing the costs because they have no real alternative — Rightmove delivers most of their leads, so leaving the platform isn’t an option.

The Bigger Picture

• For buyers/sellers: If the class action succeeds, it could reduce agent costs and potentially lower fees across the market
• For the property market: Smaller agents being squeezed out means less competition — which rarely benefits consumers
• For Rightmove shareholders: The stock could face pressure depending on how the case progresses

Alisa Zotimova, founder of AZ Real Estate in London, described the situation perfectly: “It feels a bit David and Goliath. Now there is maybe a chance.”

This is one to watch. A £1.5 billion class action against a company with 70% margins and 80% market share doesn’t come along every day.

Know what you’re paying for. And know who’s making you pay.

Sources: BBC News