OFT requested to investigate anti-competitive practices by Rightmove

Permalink: OFT requested to investigate anti-competitive practices by Rightmove
by Kay Murchie

Homes Matter, an organisation set up to help sellers and buyers cut moving costs and reduce energy bills, has been told by Rightmove that it will not be allowed to advertise its services.

As energy prices increase and house prices continue to fall, Homes Matter brings together organisations from the energy supply, estate agency, conveyancing, mortgage and energy installation industries to help sellers improve the value and saleability of their homes.

Buyers will benefit from obtaining a Home Condition Report up front along with implementation of energy efficiency measures that lower energy bills and carbon emissions, at no cost to themselves.

Low, fixed cost estate agency and conveyancing services will also be provided.

Commenting on the situation, Nigel Farren of Homes Matter, said despite the Government, Conservative Party, Which?, environmental groups and a whole host of other organisations being supportive of the initiative, Rightmove will not allow us to advertise the service because the estate agency fees will be substantially less than those charged by other agents including their shareholders, Connells and Halifax.

Newspapers and other portals such as Globrix, Propertyfinder and fish4homes will allow us to advertise, so why not Rightmove adds Mr Farren.

Mr Farren continued by saying he was surprised and disappointed by Rightmove’s decision which is clearly against consumers’ best interests, anti-competitive and an abuse of their monopoly position in the property portal marketplace.

Sellers and buyers welcome the reduced costs and ease of use of online services and this is a blatant attempt by Rightmove to protect their shareholders and other traditional high street estate agents from cheaper competition, added Mr Farren.

In other financial service sectors such as loans, mortgages and insurance, there is transparency in price, explained Mr Farren. Unfortunately, this does not apply in estate agency where there is collusion to keep prices high, he said.

The Competition Act prohibits anti-competitive practices and Homes Matter has written to the Office of Fair Trading asking them to investigate the matter.

If Rightmove is found guilty of infringing the Act, we understand the OFT has power to levy fines up to 10% of turnover. We have also requested that Connells and Halifax be made to sell their shares to help prevent any future decisions being made that hinder choice for consumers, concluded Mr Farren.