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Rightmove, a UK real estate website, reported that there has been a decrease in the number of people searching for properties on their platform, providing further indication of a slowdown in the housing market. Despite this, the company’s annual profit met expectations. As a result of this news, shares in Rightmove fell by up to 3.7% to a seven-week low of 540 pence during morning trading, making it the top percentage loser on the blue-chip FTSE 100 index.
According to the London-based company, there were over 2.3 billion visits to its platforms in 2022, but this is an 8% decrease from the previous year. Additionally, the time spent searching for properties fell by 11%. Sophie Lund-Yates, the lead equity analyst at Hargreaves Lansdown, noted that while a cooling market does not directly affect Rightmove, it does impact the estate agents that provide fees for the company. If agent numbers continue to decline, Rightmove may need to find new ways to generate income.
The CEO of Rightmove, Peter Brooks-Johnson, stated that the return of the market to normal after the COVID-induced frenetic market earlier in the year was interrupted by unexpected rapid mortgage rate increases. Despite the decline in visits to its platforms, the company’s Average Revenue Per Advertiser (ARPA) increased by 11% to £1.3 per month from the previous year. The firm reported an operating profit of £241.3 million for the fiscal year that ended on December 31, which is slightly lower than the average analysts’ estimate of £242.2 million that was compiled by the company.
The UK housing market has experienced a slowdown over the past few months due to a decline in demand for new homes. This can be attributed to higher interest rates on home loans and concerns about a potential recession, which have deterred potential buyers.
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