Rightmove has expressed a "positive outlook" for the property market in 2025, as it revised its forecasts for the entirety of 2024. The FTSE 100 company has increased its revenue guidance for 2024 to approximately £390m, indicating a 7-9% growth, aligning with prior market expectations.
Rightmove anticipates that the average revenue per advertiser (ARPA) will rise by £85-£95 above the 2023 figure of £1,431, exceeding its initial projection of £75-£85. This increase is attributed to robust sales and the successful transition of estate agents to the premium Optimiser Edge package, as reported by .
However, the company's membership numbers are expected to increase by around 1%, falling short of its initial target of up to 2%, primarily due to a slower-than-anticipated recovery in new homes development. In a trading update covering the four months to 31 October 2024, Rightmove reported a positive outlook for the property market in 2025, with heightened optimism among partners compared to the same period last year.
Recent data indicates modest growth in house prices, stable mortgage rates, and the potential for future rate reductions. New homes development is starting to gain momentum, with an increase in active on-site projects, and Rightmove anticipates further growth in 2025.
The company's performance across its strategic areas, including mortgages, commercial property, and rental services, is in line with expectations, with the latter's referencing volumes experiencing a 13% year-on-year increase. Rightmove's digital rental solution, Lead to Keys, has registered over 140 new partners and welcomed back more than 275 current members, putting the firm squarely on course to meet its subscription goals for 2024.
Johan Svanstrom, chief executive of Rightmove, commented: "This has been another period of strong progress for Rightmove, and it's pleasing to see our product development and sales delivery generating increased uptake from consumers and partners."
He further expressed confidence by stating: "As a result, we remain confident in achieving meaningful strategic and financial growth in 2024."
Additionally, Svanstrom observed the progression within the platform, saying: "We see continued momentum building product depth across our platform driving revenue growth in the core business and within our strategic growth areas,".
In other news, Rightmove recently rebuffed an acquisition attempt by Australian property giant REA, dismissing their bid as an "unattractive" proposal which "materially" undervalued the º£½ÇÊÓƵ-based company.
