Rightmove has said it is on track to grow sales this year but has trimmed its outlook as home buyer affordability tightens amid rising mortgage rates and slower housebuilding. The property portal now expects yearly revenue growth between 5% and 7%, down from previous guidance of between 6% and 8%. The company cited challenging conditions in the housing market and weak confidence among consumers and agents as the reason for the downgrade.
Mortgage costs have risen sharply in recent months. The average five-year fixed-rate mortgage stood at 5.5% at the end of October, up from 5% at the end of June, Rightmove said. The Bank of England's decision to raise its base rate and expectations of further borrowing cost increases next year are dampening consumer purchasing power, the portal added. Estate agent confidence has fallen as a result, with buyer demand for resale properties down 10% and sales agreed 9% lower in the four months to the end of October.
Activity in new housebuilding has also weakened. Rightmove flagged a 6% decline in the number of new home developments at the end of the month compared with the end of last year. However, the Government's new First Homes scheme, announced in the autumn Budget, has lifted housebuilder optimism, though Rightmove expects any boost to the volume of new homes to arrive later in 2027.
Chief executive Johan Svanstrom said the company had invested in artificial intelligence to improve its platform. "After a meaningful step up in capability, we have a well-invested, AI-ready platform," he said. Dan Coatsworth, head of markets at AJ Bell, said Rightmove remained well positioned despite market struggles. He noted that while the property listings site was seeing steady demand from estate agents, housebuilders, an increasing source of revenue in recent years, are spending less. Rightmove's position as the UK's leading property listings site gives it "pricing power" for securing subscriptions, he added.
For savers and borrowers in the UK, the combination of higher mortgage rates, weaker buyer demand and slower new home construction means less choice and higher costs for those seeking to purchase property.