UK's Rightmove sees 2027 revenue growth similar to 2026 due to homebuilding slump

Nov 6 (Reuters) - British property listing firm Rightmove RMV.L on Friday said it expects revenue growth in 2027 to be similar to 2026 , pressured by a slowdown in new home construction amid affordability pressures and rising mortgage rates.

Here are some more details:

• Rising mortgage and interest rates have hurt affordability and dampened demand for new-build homes, impacting Rightmove which allows letting agents and new homes developers to advertise their properties

• The company narrowed its 2026 revenue growth forecast to 6% to 7% from previous guidance of 6% to 8% and expects adjusted operating profit growth to be at least 3%, at the lower end of its 3% to 5% guidance range

• Homebuilders in the UK have pulled back on their building targets as demand has tempered and cost pressures from the Iran war have squeezed margins

• The company said that it expects Average Revenue per Advertiser (ARPA) growth in 2026 to narrow to £100 to £110 from £110-£120

• The fall in advertiser revenue was due to homebuilders spending less on advertising