(Reuters) – Britain’s biggest property portal Rightmove on Friday forecast an 8%-10% growth in 2025 revenue, bigger than last year’s 7% rise, bolstered by higher traffic on its website for enquiries and rate cuts that are supporting mortgages.
WHY IT’S IMPORTANT
Mortgage lending volumes rose in the UK towards the end of 2024 over the Bank of England cutting interest rates. However, the cuts have been slower-than-expected, fuelling concerns of caution among prospective home buyers while inflation woes continue.
But the market may get a possible boost from the central bank, which is expected to cut rates by another 75 basis points to 3.75% by year-end, according to a Reuters poll, and the British government too has pledged support for the sector.
BY THE NUMBERS
The forecast by Rightmove, which advertises for lettings and estate agents, implies sales of about 425 million pounds ($535.3 million) at the midpoint of the range, broadly in line with consensus of 424.3 million pounds compiled by the company.
Rightmove’s 2024 revenue stood at 389.9 million pounds, after consumers visited its platform 2.3 billion times in the year.
KEY QUOTES
“What we’ve seen is increasing consumer sentiment as interest rates have come down and mortgage rates become cheaper… so it’s real positivity coming into market in ’25,” finance chief Ruaridh Hook told Reuters.
“We’re continuing to invest in technology and products to make the platform even more useful and effective for both partners and consumers,” Chief Executive Johan Svanstrom said in a statement.
MARKET REACTION
Rightmove shares rose 2.5% to 659.4 pence by 0931 GMT.
“The core business continues to demonstrate solid growth despite competitive noise and a softer housing market,” Peel Hunt analysts said.
“The company remains in a strong position, with supportive end-markets and strong uptake of (its new top-tier package) driving confidence in the outlook,” Panmure Liberum analysts said.
($1 = 0.7940 pounds)
(Reporting by Simone Lobo in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)
