U.K. estate agents have been returning to Internet home-search
firm Zoopla Property Group PLC, the latest turn in a battle for
Britain's online house hunters.
Zoopla reported Wednesday that the number of agents listing
homes on its website rose since April by 213 to 12,556.
Just six months ago, Zoopla had more than 16,000 agents
advertising homes on its website. The figure dropped precipitously
when a group of estate agents, frustrated with paying fees to
Zoopla and rival portal and market leader Rightmove PLC to
advertise properties online, launched rival website OnTheMarket in
January.
Membership of OnTheMarket came with a rule: agents had to pick
between either Zoopla or Rightmove. Most ditched Zoopla. But now
some of those agents appear to be moving back.
Although it is not clear that Wednesday's figures are driven by
agents returning to Zoopla from OnTheMarket, or just growth in the
broader market, "this nevertheless compares favorably with our
12,549 year-end forecast and should be taken well," said analysts
at Citi. Zoopla shares rose 10 pence, or 4.1%, to 265 pence.
In the 12 months, "we expect many of the 3,000 or so Zoopla
leavers to return," said Anthony Codling, analyst at Jefferies
International Ltd., in a note to investors.
A major challenge for OnTheMarket, run by Agents' Mutual Ltd.
has been to build an audience. OnTheMarket had around 5.2 million
visits from house hunters in July, according to the firm.
Zoopla reported average monthly visits of 45.6 million from
April through July. Rightmove remains far and away the market
leader, with an average of 110 million visits a month in the first
half of the year, it said.
Pastor Real Estate, an agency focused on London's ritzy Mayfair
neighborhood, signed up for a one-year membership with OneTheMarket
in January. Breaking from the norm, it opted to stick with Zoopla
and ditch Rightmove.
But at its six-month break clause in July, Pastor quit
OnTheMarket, from which "we only received approximately half a
dozen enquiries which lead to actual registration of an applicant,
none of which resulted in a sale or letting," said Susan Cohen,
head of sales and lettings at Pastor.
Many analysts are betting that Ms. Cohen's view is indicative of
the wider market, meaning Zoopla will retain its number-two
position. OnTheMarket "is unlikely to work over time," said UBS
analyst Mark Fielding in a recent note to investors.
OnTheMarket "is obviously not performing particularly well…those
agents who are participating in it are being hurt as a result,"
said Alex Chesterman, Zoopla chief executive, in a call with
journalists.
OnTheMarket didn't immediately respond to requests for
comment.
Some analysts are still wary of the threat OnTheMarket poses.
The newcomer "is not going away quickly," said Jonathan Helliwell,
analyst at Panmure Gordon.
Russell Simpson, a high-end London estate agent, signed up with
OnTheMarket in January. The group "is still very much in the early
stages in its development," said Jake Russell, a director at
Russell Simpson.
But Mr. Russell isn't planning to quit. "We fully support the
concept and believe that it will continue to gather momentum," he
said.
Write to Art Patnaude at art.patnaude@wsj.com and Rory Gallivan
at rory.gallivan@wsj.com
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