Property giant Rightmove is facing a massive £1bn legal challenge that accuses the company of charging excessive and unfair fees to thousands of estate agents across the United Kingdom. The landmark case could have far-reaching implications for the entire property sector.
The Core Allegations
The legal action, filed on Thursday 13 November 2025, alleges that Rightmove has been abusing its dominant market position to impose unjustifiably high subscription fees on estate agents who rely on the platform to list properties. The claim is being led by Jeremy Newman, a former Competition and Markets Authority panel member and ex-managing partner of BDO.
Newman stated: "Rightmove knows that, due to its first-mover status, its product is considered a 'must-have' for estate agents." He further argued that the company "exploits its dominance of the online property portal market in the UK to charge excessively and unfairly high subscription fees, both at face value and when compared with its competitors."
Evidence of Market Dominance
The claimants point to Rightmove's extraordinary profitability as evidence of unfair pricing practices. According to the company's own 2024 accounts, Rightmove achieved a profit margin of approximately 70 per cent, making it the most profitable company in the entire FTSE 100 index.
The legal team argues that these exceptional margins result directly from Rightmove's market dominance rather than superior service or innovation. Estate agents have reportedly been forced to absorb consistent, excessive price increases on a regular basis due to their dependence on the platform.
Legal Process and Next Steps
The case is currently in its early stages, with a letter before action already delivered to Rightmove's legal team. The next phase will involve submitting a formal claim to the Competition Appeal Tribunal, which must first hold a certification hearing before proceeding toward trial.
Rightmove responded to the allegations via RNS on Thursday morning, stating: "Rightmove notes press articles relating to a potential claim against Rightmove. Rightmove has received notice of a potential claim. We're confident in the value we provide to our partners. Further updates will be provided as appropriate."
Broader Implications for Business
Ian Garrard, managing director of litigation funder Innsworth Advisors, emphasised the case's significance beyond the property sector. He described the action as "about levelling the playing field for businesses up and down the country, deterring anti-competitive behaviour and correcting the imbalance between big and small in the property sector."
The case also highlights the importance of the UK's collective actions regime. Garrard noted that "without the opt-out collective actions regime, it would be much harder – or even impossible – for SMEs to seek redress for anti-competitive behaviour."
This legal challenge emerges amid growing scrutiny of third-party litigation funding. The Department for Business and Trade called for evidence on the opt-out collective actions regime in August, while the Adam Smith Institute warned in October that expanding class action lawsuits could undermine trust in both businesses and the legal environment.
