Rightmove PLC (LSE:RMV) has confirmed it has parted ways with OpenRent and assured that the letting platform’s departure from the property portal will not affect guidance this year.
After conditions for OpenRent’s membership to Rightmove could not be settled, the duo’s partnership will expire in early September, Rightmove announced on Tuesday.
This comes after OpenRent quietly withdrew from Rightmove, where it had advertised landlord’s properties, last month.
OpenRent’s departure reportedly came as Rightmove worked to up fees for some third-party property agents and platforms which use its site.
Mike Nettleton, founder of property customer management firm Agent Response, noted last week that “while OpenRent has 15% of the lettings market, it doesn’t provide Rightmove with 15% of its revenue”.
“It’s a clear signal that the once-dominant property portal is flexing its monopolistic muscle, demanding terms so onerous that even the UK’s largest online letting agent felt compelled to walk.”
Rightmove reiterated guidance for a 7% to 9% increase in revenue and an underlying operating margin of 70% this year in Tuesday’s update.
OpenRent accounted for less than 8% of listings on the site, Rightmove added, with such departures set to see membership to the site decline by around 3% this year but average revenue per account jump by £90 to £100.
“As has been seen recently, market dynamics - within lettings in particular - are fluid,” Rightmove said.
“While we remain confident of delivering revenue and margin in line with the guidance above, the precise mix of membership and average revenue per account may vary.”