Rightmove profits slump but optimistic after strong July

Online real estate agency Rightmove posted a fall in half-year profits and agency branches, reflecting the impact of the coronavirus lockdown as it reported a cautiously optimistic outlook after strong trading in July.

Operating profit fell 43% to £61.7m on revenue of £98m, a fall of 34%. Membership numbers for agency branches and new home developments combined were 3.3% lower since the start of the year to 19,158.

Broken down that revealed a 3.5% decline in agency branches together with a 2.1% fall in new homes developments.

The company said the easing of restrictions and government stamp duty holiday on house purchases "give grounds for cautious optimism that housing transaction levels will increase from the low point in the second quarter".

"Rightmove data suggests that the significant increase in activity is being driven not only from the pent up demand from the period of lock down, but an increased number of home hunters who have decided to move following the experience of lock down," it added.

"However, it is too early to assess whether the strength of this positive momentum in the housing market will be maintained against the threat of further lock downs and wider economic slowdown."