Rightmove sees 'broadly stable' market as interim profits rise

UK property portal Rightmove on Friday reported a rise in interim profits despite a cooling in the housing market.

Operating profit grew 6% to £121.3m for the six months to June 30. Revenue grew 9% to £162.7m.

Rightmove said the housing market had cooled slightly in the first half of the year from 2021 as the Covid pandemic and associated lockdowns saw people look for larger properties as home working became the norm.

However, rising interest rates and a cost-of-living crisis pose new challenges for real estate agents.

"Activity on our platform was significantly higher than in the pre-pandemic market of 2019," said chief executive Peter Brooks-Johnson.

Average Revenue Per Advertiser (ARPA) rose 11% to £1,290 per month. Rightmove expects expect ARPA growth in the second half of the year broadly to mirror pre-pandemic growth levels.

The property market in the first half of 2022 cooled slightly from the frenetic pace of 2021 but remained healthy and ahead of 2019. Despite growing economic uncertainty towards the end of the half, there was little reduction in sales activity or demand," Rightmove said.

"New agent formation may slow following the upturn in the first half. Agency branch numbers are expected to be broadly stable in the second half. The slightly cooler market may improve the availability of new homes developments by the end of the year, with development numbers also expected to be broadly stable through to the end of the year."

Reporting by Frank Prenesti at Sharecast.com