By Fatma Younis
Rightmove has reported that housebuilding remains subdued with fewer new homes coming to market, as challenging housing market conditions persist and consumer and agent confidence stays low. The property portal flagged a 6% decline in the number of new home developments at the end of October compared with the end of last year.
Affordability pressures are mounting as the average five-year fixed-rate mortgage reached 5.5% at the end of October, up from 5% at the end of June. The Bank of England’s recent base rate hike and expectations of further borrowing cost increases next year are squeezing buyer budgets. Consequently, buyer demand for resale properties fell 10% and sales agreed dropped 9% in the four months to the end of October.
The government’s new First Homes scheme, announced in the autumn Budget, has improved housebuilder optimism, though Rightmove said any boost to new home volumes is likely to come later in 2027.
Rightmove expects its revenues to grow between 6% and 7% over 2026, a slight downgrade from previous guidance of 6% to 8%. The company also trimmed the top end of its guidance for average revenue per advertiser from £120 to £110, reflecting reduced spending by housebuilders on new home listings.
Chief executive Johan Svanstrom highlighted the company’s efforts to innovate its platform and accelerate the use of artificial intelligence. He said Rightmove has a well-invested, AI-ready platform and continues to roll out AI solutions for consumers and partners.
Dan Coatsworth, head of markets at AJ Bell, described Rightmove’s update as relatively robust, noting steady demand from estate agents but reduced spending from housebuilders, an increasingly important revenue source. He added that while Rightmove’s dominant market position gives it pricing power, slowing growth in average revenue per advertiser shows that power is not unlimited.
