Rightmove flourishes in housing market downturn

| January 14, 2008 | 0 Comments

Rightmove, the property website, has seen a sharp increase in business as a result of the slowdown in the housing market.

Around 90% of UK estate agents now subscribe to the website, which charges £325 per client to display property details.

Despite having increased charges by 30% this year, the company has seen a 39% rise in the number of new-build developments advertised on the site and the UK’s 20 largest housebuilders now use Rightmove.

A company spokesman explains: “The housing market isn’t doing very well, so people tend to think that Rightmove won’t be doing very well. But because agents are having to work harder to sell properties, they are putting their discretionary spending where they get the best returns.”

Consequently, Rightmove believes it will be insulated from any downturn in the property market, unless estate agents begin to go out of business.

The website still only accounts for around 10% of countrywide property advertising revenues; the majority is still collected by local press.

In a recent trading statement, Rightmove forecast increased pre-tax profit for the current financial year, of between £29.3 million to £32.3 million. Last year, pre-tax profit stood at £17.7 million.

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