Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Estate Agents Reassess Portal Dependency Amid Rising Costs
UK estate agents are reconsidering their reliance on major property portals such as Rightmove and Zoopla as rising subscription fees and increased competition put pressure on business models. Agencies are responding by investing more in their own digital channels to reduce dependency on third-party platforms.
Portal subscription fees have increased consistently in recent years, which has put pressure on agency margins, especially as fewer properties are coming to market in some areas. According to the BBC, some agents have launched legal action against Rightmove, alleging that the portal charges unsustainable fees. Increased competition for instructions has led many agents to spend more on portals to gain greater visibility, but this has also driven up costs across the sector.
In response, agencies are focusing on building their own websites and digital marketing strategies. This includes optimising for local search terms such as 'estate agent in [location]' and 'letting agent for landlords in [location]' to attract potential clients who have not yet chosen an agency. Other strategies include creating content for landlords and sellers, optimising websites for conversions, and building email lists through remarketing.
Conversion optimisation efforts focus on clear calls to action, instant valuation tools, and mobile-first design, reflecting the trend that most property searches now begin on mobile devices. Agencies are also highlighting trust signals such as reviews, testimonials, and case studies on their own platforms.
Industry sources indicate that agents are not abandoning portals entirely, but are instead adopting a hybrid approach that combines portal listings with investment in owned digital channels. This strategy aims to balance the immediate visibility provided by portals with the long-term control and lower costs of proprietary platforms.
Analysts suggest that agencies with the strongest performance in the coming years will be those that combine portal presence with robust local digital visibility and lead-generation capabilities through their own websites.
Source: PropertyWire