Rightmove gains as home sellers gravitate to the net
The housing market slowdown has hardly been good news for property portal, Rightmove, as its share price reflects.
However, the company has just reported a 63% rise in pre-tax profit in the six months to the end of June, to £19.8 million.
Revenues for the period increased 49%, to £37.8 million, with both sales to new members and revenue per advertiser showing growth.
The company says it is gaining business at the expense of regional newspapers and that its website now covers 90% of all new and existing homes for sale in the UK.
Rightmove’s managing director, Ed Williams, is promising that efforts to ensure that Rightmove generates enquiries from prospective home buyers are being redoubled.
The company certainly cannot afford to become complacent because the National Association of Estate Agents is launching a website that will allow its 10,000 members to advertise properties at no charge.
The site should be up and running in October and could provide strong competition for Rightmove, which charges customers up to £495 a month to advertise homes.