Board member, Paul Masters, Group Marketing and Operations Director at KFH, said: “There is no doubt that OnTheMarket.com is having a great impact on the industry and it is moving into second place rapidly.”
The property websites market was reviewed by the Office of Fair Trading (OFT) in 2012 when it considered the merger of Digital Property Group (parent DMGT) and Zoopla Group (a private equity backed business). It found that the market was not working well and there was too little competition and choice for property market participants. The OFT approved the merger which created Zoopla Property Group in April 2012.
In their most recent end of year reports, Rightmove income was £167M and profits were £124.6M (74% profit margin). Zoopla’s income was £80.2M and profits were £39M (49% profit margin).
TheOnTheMarket.com management team were responsible for the creation and development of Primelocation.com which was sold to DMGT in 2006 and is now part of Zoopla Property Group. All estate and letting agents joining OnTheMarket.com commit to list all their properties at OnTheMarket.com and a maximum of one other competing property website, which in practice means in most cases removing their properties and their listing fees from either Rightmove or Zoopla. This element of the strategy is widely seen as essential in enabling the business to disrupt the duopoly which currently exists in the property website market.
Currently, less than 10% of member firms are using Zoopla as their other portal. OnTheMarket.com covers the whole of the UK. Approximately 70 per cent of its member firms are located outside of London and 30 per cent inside London, around 90 per cent of its members have between one and three offices.