Rightmove hit as Google eyes UK housing market

3rd Dec 2009 12:40

Share in online estate agency Rightmove dropped by 10% on a report that US online giant Google is to move into the UK property market.The FT said this morning that Google is looking at the UK after opening a property portal in Australia last August. That portal allows estate agents to list properties for free, showing both pictures taken from its Street View service and details on a map.The report suggested Google would launch a similar site in the UK in early 2010. Rightmove currently charges estate agents an average of £325 per month to advertise properties on its website. Rightmove suggested that even it Google did move into the UK it did not necessarily represent a threat to its position as yet Australian estate agents have not abandoned advertising on existing websites."We provide visibility of brand and logo. Agents are spending money on raising brand awareness, not getting more properties online," Ed Williams, managing director of Rightmove, said.A launch by Google would be another blow to an already struggling local newspaper industry, which has seen property-related advertising revenues plummet over past 18 months due to a combination of online competition and the housing market slump.