Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Rightmove has lowered its revenue growth forecast for FY2026 after continued weakness in the UK new home market affected business expectations. The company said lower housing construction activity, increased competition from the resale market and cautious buyer sentiment have weighed on the sector. While revenue growth guidance has been revised downward, Rightmove has maintained its operating profit outlook and plans to return around GBP 400 million to shareholders over the next 12 months. The company is also facing legal costs linked to an ongoing competition lawsuit filed by estate agents.
Britain's largest property listings platform, Rightmove, has lowered its revenue growth forecast for FY2026 as slower new home construction and subdued housing market conditions continue to affect its outlook.
The company now expects revenue growth of 6% to 8% for FY2026, compared with its earlier projection of 8% to 10%. It also said that if market conditions weaken further, full-year revenue is likely to come in at the lower end of the revised guidance range.
Rightmove stated that new home construction in the UK has fallen to its lowest level in more than a decade. The company attributed this to difficult market conditions and stronger competition from the resale housing market, which has continued to attract buyers despite broader challenges.
Buyer demand has also remained under pressure due to concerns over interest rate increases and inflation. Higher household expenses, including rising energy bills and wider cost-of-living pressures, have made many prospective homebuyers more cautious, affecting activity across the residential property market.
Despite lowering its revenue expectations, Rightmove maintained its guidance for annual underlying operating profit. The company also reaffirmed plans to return GBP 400 million (USD 538.28 million) to shareholders over the next 12 months, including approximately GBP 330 million through share buybacks.
The property portal further said it expects to incur GBP 4 million to GBP 7 million in exceptional costs during 2026 in connection with an ongoing GBP 1.5 billion lawsuit filed by estate agents before the UK's Competition Appeal Tribunal. It added that GBP 2.3 million of these costs had already been recognised during the first half of the year.
Following the announcement, Rightmove's shares initially declined by as much as 4% in early trading before recovering to trade slightly higher later in the session.
Rightmove has remained one of the UK's leading online property portals, generating revenue primarily through subscriptions paid by estate agents and developers. However, the UK's housing market has witnessed uneven activity over the past two years as elevated borrowing costs, inflationary pressures and lower housing supply have affected both developers and homebuyers. Although expectations of improving mortgage conditions have supported parts of the resale market, new housing supply has continued to face challenges.
Source Reuters
Advertisement
Facebook
Whatsapp
