Are online letting agents transforming the market or just niche players?
Last August I wrote asking whether 2014 was the year that online letting agents would outgrow their high street counterparts.
Background
I’d like to revisit the numbers and see whether much has changed in almost a year.
But first, it’s important to understand who the customer is: DIY Landlords.
That’s right, tenants are not the customer, and neither are Absentee Landlords (you know, the ones who have a day job or live abroad).
There are no stats on what % of landlords are DIY (self-managing) and how many are Absentee.
We’ll ignore Spareroom and Gumtree for the purposes of this research, even though the volume is significant. We can’t figure out how many DIY Landlords use a combination of Spareroom/Gumtree and Rightmove, and how many just use the free-to-list services offered by Spareroom and Gumtree.
Last year (2014)
We looked at the number of live listings on Rightmove (with Zoopla numbers in brackets).
Upad — 764 (574)
OpenRent — 400 (685)
Visum — 329 (219)
Urban Sales & Lettings — 296 (298)
Makeurmove — 190 (184)
Rentify — 179 (609)
Discount Letting — 94
Lettingaproperty.com — 73
The Online Letting Agents — 70
I Am The Agent — 60
Rented Online — 34
Wise Moves — 31
House Network — 27
Mirus Property — 21
National Lettings — 17
Lets-Rent — 9
Pink Residential — 1
It was odd that these ‘tech agents’ all had a different number of listings on the two portals. Daz Bradbury, of OpenRent, has since elaborated saying that Rightmove is more expensive, so they try to let without Rightmove before posting a larger volume of listings on the major portal.
So in the 10 months since this research was conducted, has there been much growth in the use of online letting agency?
The results
We have focused on just Rightmove, as Zoopla is now increasingly becoming irrelevant. We’ve also ignored most new agencies, as they haven’t made a dent in the lead held by OpenRent and Upad. Only EasyProperty has gained sufficient volume to put it into 3rd place. For all agents, change from August 2014 in brackets.
Upad 785 (+21)
OpenRent 661 (+261)
Visum 290 (-39)
Urban.co.uk* 358 (-34)
Makeurmove 162 (-28)
Rentify 225 (+46)
Lettingaproperty.com 80 (+7)
The Online Letting Agents 93 (+23)
I Am The Agent 72 (+12)
EasyProperty — 390
*Urban Sales & Lettings acquired Discount Letting and rebranded to Urban.co.uk
So apart from OpenRent and EasyProperty, there isn’t any evidence of explosive growth or market change.
By far the most disappointing is Rentify, which was recently featured in Wired in an article titled How technology could kill off high street letting agents. While the premise of the article could very well be true, as many DIY Landlords do operate without the use of a high street agent, it won’t be Rentify or any of the above that kill off traditional/expensive agency.
Why won’t any of these agents kill off or disrupt traditional agents? They aren’t adding value.
In the Wired article, George Spencer grumbles about a bad experience with agents. Rentify, with its £7m of VC funding, isn’t offering anything new, different or exciting. And the evidence is with its constant business model pivots. The company spends money acquiring DIY landlords and then tries to upsell them to a managed service for 4%. This was 8%, but I guess there wasn’t much demand from landlords Rentify attracts, who tend to self-manage.
It’s nice having the luxury of dumb VC money allowing you to fumble your way to a viable business. Where are the announcements of seriously cool tech or innovation? We’re still waiting for an OpenDoor style revolution in the UK.
More Commentary from The Real Estate Pundit:
Featured
>
Apr 26, 2016
Apr 26, 2016
href=”/home/2016/private-help-to-buy”
class=”summary-title-link”>Why isn’t there a Private Help to Buy
Apr 26, 2016
Apr 26, 2016
I know of at least three start-ups and two corporates trying to launch a ‘Private Help to Buy’.
IMO all of them will fail.
Apr 26, 2016
Apr 26, 2016
>
Mar 30, 2016
build to rent, build a box to rent, qatari diar, createstreets, propertyshe, susan freeman, PRS, private rented sector, pension funds
Mar 30, 2016
build to rent, build a box to rent, qatari diar, createstreets, propertyshe, susan freeman, PRS, private rented sector, pension funds
href=”/home/build-a-box-to-rent-is-wrong”
class=”summary-title-link”>Build-a-box-to-rent is wrong — Why The Real Estate Pundit doesn’t support Build-to-rent, and you shouldn’t too
Mar 30, 2016
build to rent, build a box to rent, qatari diar, createstreets, propertyshe, susan freeman, PRS, private rented sector, pension funds
Mar 30, 2016
build to rent, build a box to rent, qatari diar, createstreets, propertyshe, susan freeman, PRS, private rented sector, pension funds
Why are developers so convinced that build-to-rent is ‘needed’?
Is it because expensive consultants see it as a quick way to ‘sell’ them into the Private Rented Sector?
Or is it the lazy asset managers who need the ‘one deal’ route into private rented property?
Regardless of who and why, building dorm rooms for adults is just wrong.
Mar 30, 2016
build to rent, build a box to rent, qatari diar, createstreets, propertyshe, susan freeman, PRS, private rented sector, pension funds
Mar 30, 2016
build to rent, build a box to rent, qatari diar, createstreets, propertyshe, susan freeman, PRS, private rented sector, pension funds
>
Feb 3, 2016
openrent, UK, rentify, online agents, Upad
Feb 3, 2016
openrent, UK, rentify, online agents, Upad
href=”/home/2014/who-is-the-best-online-letting-agent”
class=”summary-title-link”>Who is the best online lettings agent?
Feb 3, 2016
openrent, UK, rentify, online agents, Upad
Feb 3, 2016
openrent, UK, rentify, online agents, Upad
Lettings agency is not a difficult job, and landlords certainly don’t have the same fears as they would when selling, so the motivations that force them into using an agent are different.
So for DIY landlords to access Rightmove and Zoopla via online agency makes rational sense.
We dive into who is the biggest and best of the UK’s online lettings agents.
Feb 3, 2016
openrent, UK, rentify, online agents, Upad
Feb 3, 2016
openrent, UK, rentify, online agents, Upad
>
Nov 10, 2015
Cherrybird, Nestpick, Uniplaces, Bedcount, Flat Club, StudentPad, Accommodation for Students, ACUHO, ASRA, AACUHO
Nov 10, 2015
Cherrybird, Nestpick, Uniplaces, Bedcount, Flat Club, StudentPad, Accommodation for Students, ACUHO, ASRA, AACUHO
href=”/home/2014/airbnb-for-student-accommodation”
class=”summary-title-link”>Airbnb for student accommodation
Nov 10, 2015
Cherrybird, Nestpick, Uniplaces, Bedcount, Flat Club, StudentPad, Accommodation for Students, ACUHO, ASRA, AACUHO
Nov 10, 2015
Cherrybird, Nestpick, Uniplaces, Bedcount, Flat Club, StudentPad, Accommodation for Students, ACUHO, ASRA, AACUHO
It seems to be that everyone is building an ‘Airbnb for student accommodation’.
But have they missed the point of providing ‘trust’ and ‘value’ for students and landlords?
Yup.
Nov 10, 2015
Cherrybird, Nestpick, Uniplaces, Bedcount, Flat Club, StudentPad, Accommodation for Students, ACUHO, ASRA, AACUHO
Nov 10, 2015
Cherrybird, Nestpick, Uniplaces, Bedcount, Flat Club, StudentPad, Accommodation for Students, ACUHO, ASRA, AACUHO
>
Sep 29, 2015
Sep 29, 2015
href=”/home/rip-easyproperty”
class=”summary-title-link”>RIP Easyproperty
Sep 29, 2015
Sep 29, 2015
Easyproperty, the late to the market online estate agent, pulled a marketing stunt mourning the death of high street agents.
The irony, as a start-up, is that Easyproperty is more likely to be placed on the scrap heap than those ‘over-charging’ high street agents. Why?
They’re low service, late to the party and their low fees basically tell homeowners they’ll sell their property for less.
Congratulations on launching, Easyproperty, it was nice knowing you.
Sep 29, 2015
Sep 29, 2015
>
Sep 1, 2015
Sep 1, 2015
href=”/home/2015/hear-emoov-buy-rightmove”
class=”summary-title-link”>When online estate agents raise capital, buy Rightmove shares
Sep 1, 2015
Sep 1, 2015
If you have spare cash to invest, and would like a stellar return, I’d recommend buying Rightmove shares every time an online agent raises capital.
It is Rightmove after all that makes all the profit, while Emoov takes on all the costs.
Sep 1, 2015
Sep 1, 2015
>
Aug 14, 2015
Aug 14, 2015
href=”/home/2015/5000-uk-agents-have-a-springett-in-their-next-step”
class=”summary-title-link”>Are 5,000 UK Agents Losing the Springett In Their Step
Aug 14, 2015
Aug 14, 2015
OnTheMarket.com (OTM) set out to split the memberships of the Rightmove and Zoopla duopoly. While the jury is still out on its chances of success, the start-up has definitely succeeded in splitting opinion.
But what is the next step for OnTheMarket? Here’s my thesis.
Aug 14, 2015
Aug 14, 2015
>
Aug 6, 2015
Commentary, Popular, UK PropTech Start-ups
Knocker, PropertyPartner, Radpad, Opendoor, Splittable, Crowdlords, Realla, FixFlo, Locatable, OpenDoor, LandInsight
Aug 6, 2015
Commentary, Popular, UK PropTech Start-ups
Knocker, PropertyPartner, Radpad, Opendoor, Splittable, Crowdlords, Realla, FixFlo, Locatable, OpenDoor, LandInsight
href=”/home/2015/the-property-tech-i-would-invest-in”
class=”summary-title-link”>The Property Tech I would invest in
Aug 6, 2015
Commentary, Popular, UK PropTech Start-ups
Knocker, PropertyPartner, Radpad, Opendoor, Splittable, Crowdlords, Realla, FixFlo, Locatable, OpenDoor, LandInsight
Aug 6, 2015
Commentary, Popular, UK PropTech Start-ups
Knocker, PropertyPartner, Radpad, Opendoor, Splittable, Crowdlords, Realla, FixFlo, Locatable, OpenDoor, LandInsight
I’m about to invest in a property tech company.
Before making this decision, I thought carefully about who else I would want to invest in.
Those companies are detailed below. I thought it important to include how much I would invest, and why.
Aug 6, 2015
Commentary, Popular, UK PropTech Start-ups
Knocker, PropertyPartner, Radpad, Opendoor, Splittable, Crowdlords, Realla, FixFlo, Locatable, OpenDoor, LandInsight
Aug 6, 2015
Commentary, Popular, UK PropTech Start-ups
Knocker, PropertyPartner, Radpad, Opendoor, Splittable, Crowdlords, Realla, FixFlo, Locatable, OpenDoor, LandInsight
>
Aug 5, 2015
Aug 5, 2015
href=”/home/2015/crowdfunding-to-buy-a-home”
class=”summary-title-link”>Don’t get a mortgage, get a crowd
Aug 5, 2015
Aug 5, 2015
No one need ever worry about renting ever again. Find a house to buy, put it on a platform like Crowdlords with the rent you’ll pay to your co-owners and (if you get funded) you’re now free of landlords forever.
Goodbye nasty landlord. Hello Crowdlord.
Aug 5, 2015
Aug 5, 2015
>
Jul 2, 2015
Jul 2, 2015
href=”/home/open-data”
class=”summary-title-link”>How important is Open Data in Real Estate?
Jul 2, 2015
Jul 2, 2015
Data can show what humans cannot articulate clearly, or have not spotted.
Should large sets of property data be available for analysis, would real estate agents, let alone consumers, really gain in a meaningful way?
Jul 2, 2015
Jul 2, 2015