Rightmove has said it sees a “positive outlook” for the property market next year as it updated its forecasts for the whole of 2024.
The FTSE 100 company has upped its 2024 revenue guidance to around £390m, reflecting seven to nine per cent growth and in line with previous market expectations.
Rightmove now expects average revenue per advertiser (ARPA) to grow by £85-£95 above 2023’s figure of £1,431, surpassing its initial guidance of £75-£85.
This boost reflects strong sales and the successful migration of estate agents to the premium Optimiser Edge package.
But the company’s membership numbers are set to rise by around one per cent, below its initial target of up to two per cent, largely due to a slower-than-expected 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 more optimism among partners than this time last year.
Latest data shows modest house price growth, stable mortgage rates and the potential for future rate cuts.
New homes development is beginning to pick up, with more projects now active on-site, and Rightmove is expecting further growth in 2025.
Performance across its strategic areas including mortgages, commercial property, and rental services is in line with expectations, with the latter’s referencing volumes up 13 per cent year on year.
Lead to Keys, Rightmove’s digital rental solution for agents and landlords, has added over 140 new partners and attracted more than 275 existing members, keeping the company on track to hit its 2024 subscription targets.
Johan Svanstrom, chief executive of Rightmove, said: “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.
“As a result, we remain confident in achieving meaningful strategic and financial growth in 2024.
“We see continued momentum building product depth across our platform – driving revenue growth in the core business and within our strategic growth areas,” he added.
Rightmove was recently the target of a takeover bid by Australian property portal REA, but it shunned the offer as an “unattractive” one that “materially” undervalued the company.
