For more than three years now I have often cast a very watchful eye over the property portal industry. Whilst working within it I would always keep tabs on what the competitors were doing and now I have stepped outside the circle I am moreso keeping tabs on new developments.

I started out working for one of the smaller independent portals in the UK side of the market and we were operating out side of the top five yet trying to build market share. We always had a firm belief that through hard work we could achieve a standing close to or even above those situated in second place and below, but the top dog was always perceived as untouchable. Never say never I know, but they were a bridge too far.

So as the economic times continue to constrain the budgets of estate agents all over the country, how do they survive? Cutting costs is the obvious answer. The aforementioned portals aggressive business model of demanding considerable amounts per month is one such reduction that can be done away with virtually immediately, especially if on a rolling contract, so it came as little surprise that of the 22 agents in Hereford an astonishing 70% have chosen to withdraw their subscriptions [Source: Global Edge]. So if Hereford serves as an example, what of the rest of the nation?

Whilst I have yet to research the response of various competitors this has heightened a perspective that I have held for a few months now in that the portal market is set for a radical change. It has always been such a fragmented market, but now, in line with other industries, it will whittle down to the industrious few. I personally believe that smaller sites will unfortunately now cease to exist over the course of 2009 and that the market leader will not be the only one to face reductions in subscriptions. In fact, they’ll all face it. If the best performer faces reductions, any other portal believing there is market share to seize has, quite frankly, delusions of grandeur.

In the oncoming weeks I shall further analyse competitor reactions to this and intend to make a few phone calls to that effect. Watch this space.