Tesco is expected to go head to head with estate agents within weeks with the launch of a property website, allowing home owners to advertise their properties for a flat fee of around £200.
Tesco embarked on the launch of Tesco Property Market in 2007 but had to abandon plans due to current legislation governing estate agents and sold the business to estate agents Spicerhaart.
However, a report by the Office of Fair Trading yesterday said the legislation dating back to 1979 should be relaxed to allow more online agents into the market. It said the market is dominated by traditional estate agents which fail to offer competitive prices.
Internet giant Google is also reportedly planning a property site in the UK.
Tesco is understood to be working with Spicerhaart on the launch, which has been code named Project Indigo. It is likely to be tested in a small number of locations, possibly including Milton Keynes, Reading and Brighton.
A Tesco spokesman refused to rule out the launch and told the Daily Telegraph: “We welcome the OFT’s conclusion that legislation can be updated to make it easier for new entrants to service customers and that a recognised and trusted brand, such as Tesco, entering the market would allow for greater competition between online services and traditional estate agents, to the benefit of the consumer.”
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