Founder condemns OnTheMarket board for selling to CoStar

In early 2024, the property search company OnTheMarket was sold to the American firm CoStar for approximately £99 million. Trevor Abrahmsohn, the founder of OnTheMarket, expressed his discontent with the board's decision to proceed with the acquisition, which he believes negatively impacted the market by allowing Rightmove to increase its fees dramatically. He referred to the former directors and shareholders of OnTheMarket as being 'naive and wet behind the ears' for agreeing to the sale, suggesting that they failed to foresee the repercussions of their actions. Before its acquisition, OnTheMarket was supported by a number of estate agents who had significant stakes in the company and advocated for maintaining competitive search fees across the industry. Abrahmsohn's perspective is grounded in his belief that OnTheMarket played a crucial role in limiting fee inflation in the property search sector. He had previously campaigned vigorously for shareholders to reject the takeover proposal, but his efforts went unheeded. His views represent a growing concern among property professionals about the influence of larger corporations on local market dynamics. Now that OnTheMarket is privately held by CoStar, Abrahmsohn worries that competition will decrease and that estate agents will be subjected to higher fees without the benefit of a counterbalance. The ramifications of the sale extend beyond just financial concerns; they also touch upon the competitive landscape of the property search industry in the UK. As Rightmove, the largest property portal in the UK, raises its fees, estate agents may have to pass these increased costs onto consumers. This season of heightened fees could lead to reduced consumer choice and increased difficulty for potential buyers and renters in an already challenging housing market. Abrahmsohn's criticism highlights the ongoing tension between innovation in the property sector and the consolidation of power among a few dominant players. Ultimately, Abrahmsohn’s remarks serve as a warning about the potential consequences of prioritizing short-term financial gain over long-term strategic partnerships and stability within the real estate environment. Estate agents and consumers alike may find themselves bearing the brunt of these changes as market dynamics shift following the sale of OnTheMarket to a US competitor.