ASDA launches new property website

ASDA has launched a property website, allowing its customers to purchase property online.

While the market as a whole has been in decline in recent months – with Halifax reporting that prices have fallen over six per cent during the last year – online property advertising has continued to see growth.

As such, ASDA – the UK's second largest supermarket – has chosen now to launch www.homesinstore.co.uk, which allows sellers to advertise their property for both sale and rental.

This costs £35 a week, for advertisement both in the organisation's stores and on the web.

However, the site is not an estate agency.

ASDA will work with third parties to offer the property and will not be directly involved in any sales.

This has allowed the supermarket to avoid the pitfalls encountered by Tesco with the launch of both Tesco Property Market (TPM) and DIY Home Sales.

Following its launch last year, TPM was forced to suspend trading and return deposits after the Office of Fair Trading (OFT) ruled the organisation was acting as an estate agent and as such would have to follow relevant rules.

Since this decision was issued, in October 2007, Tesco has sought a buyer for its online organisation and is now believed to be close a deal with agent Spicerhaart.

ASDA's scheme follows a successful trail in the north-east, which will now be extended to the South-east, Kent and Essex.

Chris O'Toole