CoStar’s OnTheMarket Acquisition Could Spark Property Portal Price War

The landscape of the UK property portal market could be on the brink of a significant transformation following the acquisition of OnTheMarket (OTM) by CoStar. This development, according to a proptech firm, is already beginning to show its effects.

Agent Response, a lead generation management provider that specialises in filtering email and telephone leads from property portals, has undertaken a comprehensive analysis of conversion rates across the major property websites for the month of June. This analysis covered approximately 100,000 leads and data from 400 branches, offering a robust snapshot of current trends.

The findings reveal a notable disparity in the performance of the leading portals. Rightmove leads the pack, with 48% of its leads progressing to the next step by filling in a form. In comparison, OTM's conversion rate stands at 37%, while Zoopla trails behind at 25%.

Michael Nettleton, founder of Agent Response, remarked on the historical performance of OTM, noting that it has typically been quite similar to Zoopla. However, since CoStar's takeover last year, there appears to have been a significant shift.

“With their recent investment by CoStar, a major industry player, it'll be fascinating to see how OTM’s conversion rates evolve and how Zoopla reacts to this growing competitor,” Nettleton commented. “Could this be the spark that ignites a price war among portals, with each fighting for agents' business through lower fees?”

The potential implications of a price war could be substantial. Zoopla, which has comfortably held the position of the second-largest portal, may find itself challenged by OTM's newfound momentum and strategic backing from CoStar. This shift could force Zoopla to reconsider its position and strategies to avoid slipping further in the rankings.

For estate agents, this evolving dynamic offers both challenges and opportunities. Lower fees could benefit agents, reducing their operational costs. However, the competitive environment could also mean that agents need to stay more vigilant and adaptable to ensure they are leveraging the best platforms for lead generation and conversions.

As the market continues to respond to these changes, the coming months will be crucial in determining whether this acquisition will indeed trigger a broader competitive reshuffling among the UK's top property portals. Estate agents, investors, and industry watchers alike will be keeping a close eye on how these trends develop and what they mean for the future of property marketing and lead generation.

At Ellis Brooke, we are committed to keeping our clients informed about the latest developments in the property market. Stay tuned for more updates and insights on how these changes could impact your property transactions and strategies.