Rightmove (LSE:RMV) shares dropped more than 6% on Wednesday after a class action lawsuit seeking £1.5 billion in damages was brought against the UK’s largest property portal, alleging the company has overcharged estate agents for years.
The FTSE 100 stock fell to a session low of 392p, nearly 10% below its opening level, before recovering slightly to trade near 399p, leaving the company with a market value of around £3.3 billion.
The case was filed with the Competition Appeal Tribunal by accountant and former Competition and Markets Authority panel member Jeremy Newman. The claim argues that Rightmove abused its dominant position in the online property portal market by imposing excessive subscription fees on thousands of estate agents and home developers.
In a statement to the London Stock Exchange, Rightmove confirmed that the claim had been filed and said it was “without merit.”
The company said it would “defend it vigorously,” adding that it remains “confident in the value we provide to our partners and consumers.”
Rightmove also noted in its regulatory statement that the legal action follows a disclosure made on November 13, 2025, when the company first warned investors that potential proceedings could be initiated.
Newman told the BBC, which initially reported the lawsuit, that agents were “having to employ fewer people” because of rising subscription costs and accused Rightmove of “exploiting a self-evident dominant market position.” According to the report, a letter of claim requesting just under £1.5 billion in damages has been sent to the company.
Rightmove, which regularly reports profit margins of roughly 70% and, according to its own research, accounts for about 80% of time spent on property portals in the UK, said its platform “continues to provide a growing range of constantly evolving products and features which facilitate market transparency, liquidity and confidence.”
Several estate agents told the BBC their subscription costs have more than doubled in recent years. One agent based in London described the increases as “unsustainable.”
Another agent in Northamptonshire said he pays more than £5,000 per month for a basic membership covering between 30 and 50 properties, which he said is equivalent to the cost of employing two full-time staff members.
Not all agents are critical of the company’s pricing. A Midlands-based estate agent defended Rightmove’s fees as offering “value for money,” noting that around 80% of his leads originate from the platform.
Rightmove’s shares had already fallen roughly 25% since the start of the year prior to Wednesday’s drop, reflecting continued pressure on the stock after a takeover approach by Australian property portal REA Group collapsed in late 2024.
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