Rightmove said it was on track to increase profits by 2026 despite warning that the ability of homebuyers is under pressure
Rightmove has announced it will continue to increase sales this year, despite warning that homebuyer affordability will come under pressure as mortgage rates rise and housing starts slow.
The property portal confirmed that it expects revenue growth for the year, although it has scaled back its outlook.
Conditions in the housing market, as well as confidence among consumers and estate agents, remain tested, the company said.
The average five-year mortgage rate was 5.5% at the end of October, up from 5% at the end of June, he said.
Meanwhile, the Bank of England’s decision to raise its base rate on Thursday, coupled with expectations that borrowing costs will rise again next year, weighed on consumer confidence.
Rightmove reports that estate agents’ confidence has fallen, with buyer demand for resale properties down 10% and agreed sales down 9% in the four months to the end of October.
The company also reported a 6% decrease in the number of new developments at the end of the month, compared to the end of last year.
However, the Government’s new First Homes scheme, announced in the autumn Budget, has raised the optimism of housebuilders, although a meaningful lift in the supply of new homes will not take place until later in 2027, according to the company.
Rightmove, which generates revenue by charging estate agents fees to list properties and through advertising revenue, predicts profits will grow by between 6% and 7% in 2026.
This marks a modest downgrade from previous guidance of between 6% and 8% revenue growth. The company has also reduced the upper limit of its guidance for growth in average revenue per advertiser, from £120 to £110, with the change largely due to housebuilders reducing spending on new homes.
Chief executive Johan Svanstrom highlighted the company’s efforts to innovate its platform and accelerate the adoption of artificial intelligence (AI).
“After a significant step forward in capabilities, we have an AI-ready platform that we have invested in well,” he said.
“We continue to roll out high-quality AI solutions for our consumers and partners, leveraging a layer of intelligence built with supply and demand data, and our platform.”
Dan Coatsworth, head of markets at AJ Bell, said: “The property market may be struggling but the latest update from Rightmove is relatively strong.
“Property listing sites are seeing steady demand from estate agents but housebuilders, a growing source of income in recent years, are spending less.”
Mr Coatsworth said the Rightmove site has the most listings in the UK market giving it “price power” to secure subscriptions.
“However, as the slow growth in average revenue per advertiser metric for the quarter shows, this pricing power is not unlimited,” he said.