UK's Rightmove sees 2027 revenue growth similar to 2026 due to homebuilding slump
UK's Rightmove sees 2027 revenue growth similar to 2026 due to homebuilding slump Nov 6 (Reuters) - British property listing firm Rightmove RMV.L on Friday said it expects revenue growth in 2027 to be similar to 2026 , pressured by a slowdown in new home construction amid affordability pressures and rising mortgage rates.
Here are some more details:
Rising mortgage and interest rates have hurt affordability and dampened demand for new-build homes, impacting Rightmove which allows letting agents and new homes developers to advertise their properties
The company narrowed its 2026 revenue growth forecast to 6% to 7% from previous guidance of 6% to 8% and expects adjusted operating profit growth to be at least 3%, at the lower end of its 3% to 5% guidance range
Homebuilders in the UK have pulled back on their building targets as demand has tempered and cost pressures from the Iran war have squeezed margins
The company said that it expects Average Revenue per Advertiser (ARPA) growth in 2026 to narrow to £100 to £110 from £110-£120
The fall in advertiser revenue was due to homebuilders spending less on advertising
(Reporting by Simone Lobo in Bengaluru; Editing by Ronojoy Mazumdar)
((Simone.Lobo@thomsonreuters.com, +919920570373))