Rightmove stock drops 6% amid £1.5 billion collective lawsuit against real estate agents

Investing.com - Rightmove shares fell by more than 6% on Wednesday. A collective lawsuit that had previously sought to claim £1.5 billion together was filed with the court, accusing the UK-dominant property portal of charging excessive fees to property agents for years.

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The shares of the FTSE 100 index constituent hit an intraday low of 392 pence, down nearly 10% from the open. They later narrowed the decline to trade at around 399 pence. The company’s market value is about £3.3 billion.

The lawsuit was filed with the Competition Appeal Tribunal by Jeremy Newman, an accountant and former panel member of the Competition and Markets Authority, accusing Rightmove of abusing its dominant position in the online property portal market by charging excessive subscription fees to thousands of property agents and new home developers.

Rightmove confirmed in a statement it issued to the London Stock Exchange that the lawsuit had been filed, adding that the claim is “without merit.”

The company said it will “vigorously defend,” and added that it is “confident in the value we provide to partners and consumers.”

The regulatory announcement said the lawsuit was filed after a previous disclosure by the company on November 13, 2025, when it first flagged the possibility of potential litigation.

Newman told the BBC (the outlet that first reported the news) that, due to rising fees, agents “have had to cut employees,” and that Rightmove is “leveraging its self-evident market dominance.” According to the BBC, a claim letter seeking nearly £1.5 billion has been sent to the company.

Rightmove has maintained a profit margin of around 70%, and its own research shows that its share of user time on UK property portal websites reaches 80%. The company said its platform “continues to deliver an expanding, continuously evolving set of products and features that promote market transparency, liquidity, and confidence.”

Several agents told the BBC that their fees have more than doubled in recent years. One London agent described the price hikes as “unsustainable.”

An agent in Northamptonshire said he pays more than £5,000 per month for a basic membership covering 30 to 50 properties, adding that this amounts to the wages of two full-time employees.

Not all agents oppose the platform’s pricing. A Midlands agent defended Rightmove, saying it is “good value for money,” and pointing out that 80% of his customer lead referrals come from the website.

Ahead of the fall on Wednesday, Rightmove’s share price was down about 25% since the start of the year, reflecting ongoing pressure on the stock following the failed takeover proposal for the Australian portal website REA Group at the end of 2024.

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