Tesco to offer online estate agency

30 April 2008 05:50pm

Retail giant Tesco said it was planning a second assault on the UK property market with the launch of a new online estate agency service.

The supermarket giant said it was in talks with nationwide chain Spicerhaart to set up an internet-based venture, with the estate agent potentially buying Tesco's existing venture as part of the deal.

The news comes around six months after the retailer's "DIY" selling service Tesco Property Market was suspended after a ruling from the Office of Fair Trading (OFT).

Estate agents protested when the retailer set up Tesco Property Market last June, offering a platform for private sellers to list and market their house for a flat fee of £199.

The OFT decided it was effectively an estate agency service in October, prompting Tesco to suspend the operation and carry out a business review.

A Tesco spokesman said: "We have been reviewing our internet estate agency for some time and exploring ways in which we might be able to bring more value and choice to home movers. This has involved us talking to others in the industry and we are now in the final stages of negotiations for a deal to sell Tesco Property Market to Spicerhaart."

He added that the new venture will be an estate agency service operated through the Tesco.com website, charging customers a flat fee rather than commission. Its branding is yet to be decided.

Spicerhaart has 300 offices across the UK but no current online estate agency service.

Chief executive Paul Smith said: "Spicerhaart is developing a new innovative virtual estate agency business in partnership with Tesco, who will be the main distribution partner. This business, which will benefit from our well established property expertise, will offer a high quality estate agency service."

The new venture could be up and running by the start of next year, a Spicerhaart spokeswoman added.

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