Tesco moves in on the housing market

Tesco is moving in on the property market
One pound in seven we spend goes to Tesco

You can insure your house with them, kit it out from top to bottom with their furniture and buy their broadband.

Tesco is moving in on the property market
One pound in seven we spend goes to Tesco

Want cheaper gas and electricity? No problem. Loans and mortgages are their speciality. You can even buy your food there.

Now Tesco, which already dominates our spending habits, is about to muscle in on the property market.

According to The Negotiator magazine, the estate agents' industry publication, the company is attempting to provide a cut-price platform for private sellers to list their house for a flat fee of £199.

For the money you get online advertising space and a Tesco "for sale" board outside your house. Sellers also get an online valuation calculator, with viewings and offers arranged through the website, and a buyer vetting service conducted by a data company.

The deal will no doubt encourage those who wonder what estate agents do for their money, and the supermarket will be encouraged that there is a market to exploit as currently only seven per cent of houses in Britain are sold privately.

However, Tesco appears to be running into trouble as they require help from existing estate agents' internet portals to use their listings to help drive traffic, and unsurprisingly most estate agents are not keen to participate.

Ed Williams, group managing director of Rightmove, said: "We're not playing ball. This is a Trojan horse and we have declined to participate. Our commitment not to take private advertisers is longstanding and on the record.

"If Tesco scrape our listings without our permission, we will take the appropriate legal action."

Warren Bright, chief executive of Propertyfinder, said: "We were approached some months ago but we have chosen not to participate, as their proposition is not in the interests of the estate agent, who is our customer.

"They wanted to position their private sellers at the top of their listings, followed by our listings. They won't be getting feed from us."

Tesco is understood to want to advertise "tens of thousands of properties from all the major property portals including Primelocation and Findaproperty".

Findaproperty and Primelocation have both denied any intention to work with the supermarket giant.

Ian Springett, chief executive if Primelocation, added: "We were in fact approached by Tesco a few months ago but, for a variety of reasons, took a decision not to become involved.

"Naturally, the direct vendor element of the proposed new portal was a problem for Primelocation since our site features only properties supplied to us by member estate agents."

Rosalind Renshaw, editor of The Negotiator, said: "Established estate agents are hopping up and down over this and their livelihood is under threat.

"What estate agents are very good at is negotiating the best price for their vendor and are very good at nursing through deals where complicated chains are involved. The question is can Tesco do either of those things."

Asda was the first supermarket to move into the property market and began trials last year in 21 of its northern stores offering a one-per-cent fixed-fee estate-agency scheme.

Tesco has around a third of the entire food and household goods market and one pound of every seven we spend goes into their coffers.

Tesco declined to comment.