Market recovery boosts Rightmove
Inquiries from home-buyers surged 70% year-on-year in June at property website Rightmove as the recovering housing market boosted its half-year earnings.
Visits to its website increased 22% to 7.2 billion during the first six months, with would-be buyers making 3.1 million phone calls and emails to estate agents during June alone, as government stimulus schemes spur demand.
The UK’s biggest property website cashed in on the housing market’s renaissance with pre-tax profits rising 15% to £44.6 million, while revenues advanced 16% to £67.2 million.
Rightmove, which claims to have an 81% market share among the top three property websites, said its popularity continues to grow and was helped by a new TV campaign featuring music by Blondie.
Government schemes including Help to Buy and Funding for Lending have fuelled the housing market in recent months, enticing more first-time buyers onto the property ladder with cheaper mortgages.
The Funding for Lending Scheme gives lenders access to cheap finance in order to help borrowers, and has been credited with increasing the availability of home loans and cutting their cost since its launch last August.
Chancellor George Osborne also launched Help to Buy in April, which allows people to buy a newly-built home with a deposit of just 5%.
Rightmove chief executive Nick McKittrick said investment in technology, such as a new smartphone app and local phone numbers, combined with the improving housing market to drive growth. Inquiries in June almost beat a record high set in April.
The website tracks inquiries to its estate agent customers by using unique local phone numbers and personalised emails.
It said: “So far this year the housing market has been improving and is being helped by a number of Government schemes.”
Average revenues per advertiser surged 14% to £593 per month.
The Milton Keynes-based group said good trading has continued into July, helping it trade in line with its expectations, lifting its shares 5%.
Analysts at Canaccord Genuity said: “Comments from the leading UK estate agents and house builders suggest the residential property market is set to improve markedly. This should provide an excellent backdrop for Rightmove’s discretionary products.”
Rightmove dominates a property search market which also includes smaller rivals Zoopla and Prime Location.
If you were searching for a new home, would you go online and look at Rightmove, or would you visit your local Estate Agents?
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