Rightmove has revised its revenue forecast downward for 2026, citing falling buyer demand and weaker sales in the housing market. The property platform reported a 10% drop in buyer inquiries and a 9% decline in sales agreed over the past year, with higher mortgage rates squeezing affordability. Average asking prices fell 0.3% year-over-year in late October, while the average five-year fixed mortgage rate rose from 5% in June to 5.5% by the end of October.
The company warned that the Bank of England’s latest interest rate hike could worsen conditions, with financial markets anticipating further increases in 2027. Despite the challenges, Rightmove still expects revenue growth of 6% to 7%—down from its prior forecast of 6% to 8%—and upgraded its earnings-per-share guidance from at least 5% to at least 7%. The company’s forecast revision is a result of the current market conditions.
Housing Market Challenges
Housebuilders are driving the revenue slowdown. Rightmove lowered its forecast for average revenue per advertiser (ARPA) growth from £110–£120 to £100–£110, blaming weaker spending in the new-build sector. Developments on site were 6% lower in October than December 2025, and the company expects its New Homes revenue to dip below last year’s level. Estate agency ARPA projections remain unchanged, however, as they are not as heavily affected by the new-build sector.
While the sales market weakens, the lettings sector shows resilience. Enquiries per rental property have climbed, and average rents are up 2.9% year-over-year. Mortgage-in-principle applications surged over 50%, despite higher borrowing costs. Estate agent retention also remains strong, with 92% of partners staying with Rightmove in October, a near-decade high. This high retention rate is a positive sign for the company.
AI Adoption Gains Momentum
The company is accelerating AI adoption to offset market pressures. Its AI-powered call transcription service, now free for all estate agency partners, has processed over two million calls since launch. The Optimiser Edge tool has analyzed more than one million calls, while 14,000 agents have used the Rightmove Plus AI Assistant for property performance insights. On the consumer side, users engaging with AI tools spend more than twice as long on the site, save three times more properties, and generate three times more leads, though the data compares AI users to non-users, not before-and-after usage. The use of AI tools is becoming increasingly important for the company.
Rightmove plans to return over £400 million to shareholders between July 2026 and July 2027, including £80 million in share buybacks before year-end. Chief Executive Johan Svanstrom noted that the company’s debt facility and stable core membership, with 92% partner retention, support increased shareholder distributions. He also emphasized continued investment in AI tools for agents and consumers, which will be key for the company’s future growth.
Future Growth Expectations
Rightmove expects revenue growth to stay flat next year, with underlying operating profit rising 4% to 7%. The company also announced that David Thomas will join its board as an independent director, ahead of his originally scheduled appointment in January 2027. This new appointment will bring fresh perspectives to the company’s board. The company’s future plans and expectations are subject to change based on market conditions.
