Rightmove reported a 10% drop in buyer demand and a 9% decline in sales agreed, yet it still expects revenue and profit to rise this year.
Market dominance tested by slowing transactions
Analysts at eToro, RBC Capital Markets and Freetrade agree that the portal’s leading position remains a core strength, but they differ on how long it can shield the business from a weakening market.
Mark Crouch, market analyst at eToro, said the platform has built one of Britain’s most formidable competitive positions, but its influence has limits when buyers and sellers cannot agree on price.
He noted that yesterday’s interest-rate increase adds another obstacle for buyers already struggling with affordability, while sellers remain reluctant to accept that their properties may no longer command yesterday’s prices.
Crouch argued that estate agents’ continued reliance on the site could help protect income even as transactions decline, because agents still need every advantage to attract buyers.
He warned, however, that sustained weakness could eventually affect the businesses paying to advertise on the portal.
Revenue guidance trimmed amid legal pressure
RBC Capital Markets’ Anthony Codling took a more upbeat view, saying Rightmove remains relatively insulated from the challenges facing estate agents and housebuilders.
He pointed to mortgage rates now at 5.5% and sales-agreed volumes down 9%, yet the business continues to grow revenue, profits and free cash flow through strong execution.
Codling highlighted Rightmove’s investment in artificial intelligence and its ability to retain advertisers. The portal has introduced a third feature to its Ask Rightmove AI platform, while users engaging with its conversational tools spend more than twice as long on the website and generate more than three times as many leads.
These figures show an association between AI engagement and user activity, rather than proving that AI caused the increase.
Rightmove has upgraded its earnings-per-share growth forecast from at least 5% to at least 7%, and analysts still consider the shares undervalued.
Freetrade’s Duncan Ferris sounded more cautionary, citing the trim of the top end of revenue guidance from 8% to 7% as a red flag.
He said the portal now expects revenue growth of 6% to 7% in 2026, down from the previous 6% to 8% range.
Average revenue per advertiser is now projected at £100–£110, reduced from £110–£120, reflecting weaker spending by housebuilders.
Advertiser retention fell to 92% at the end of October, a slight dip from 93% a year earlier.
Ferris also highlighted the collective legal action facing Rightmove over allegations that it has abused its dominant market position by overcharging estate agents.
The claim, valued at approximately £1.5bn, is being pursued through the Competition Appeal Tribunal. Following hearings last week, the tribunal reserved judgment on whether the proceedings should continue on an opt-out collective basis.
Rightmove strongly denies the allegations. No finding of wrongdoing has been made.
Strategic focus amid market headwinds
Beyond the litigation, the portal continues to expand its digital service suite. Recent enhancements to the Ask Rightmove platform add a third conversational capability, broadening user interaction options.
