Rightmove, the UK's largest property listings website, has trimmed its revenue growth forecast for fiscal 2026, citing a softer housing market. The company now expects revenue to grow by 6% to 8%, down from its previous guidance of 8% to 10%. Despite the downgrade, Rightmove reaffirmed its plan to return £400 million to shareholders over the next 12 months.
What's behind the slowdown?
Rightmove makes most of its money by charging estate agents and homebuilders to advertise properties on its platform. That means its financial performance is closely tied to how much those customers are willing—and able—to spend. When the housing market slows, agents and builders often cut back on marketing budgets, which directly hits Rightmove's revenue.
The company pointed to a weak new-build market as a key drag. New-home construction in the UK is running at its lowest level in more than a decade, according to the company. That's a problem for Rightmove because homebuilders are major advertisers on the site. At the same time, competition from the resale market is putting additional pressure on activity, as buyers and sellers navigate a market that has cooled significantly over the past year.
This isn't an isolated trend. UK house prices edged up in July, but annual growth has cooled to just 1.8%, reflecting the broader slowdown in the property market. Higher interest rates have made mortgages more expensive, which has dampened demand from buyers and made sellers more cautious about listing their homes.
What does this mean for investors?
For everyday investors, Rightmove's revised outlook is a reminder that companies tied to the housing market are feeling the pinch. When interest rates are high, the cost of borrowing rises, which typically cools property transactions. That directly affects companies like Rightmove that depend on the volume of listings and transactions.
The £400 million shareholder return plan is a notable bright spot. Rightmove has a history of returning cash to investors through dividends and buybacks, and this commitment signals that the company's balance sheet remains strong even as growth slows. For investors, that could provide some cushion against the weaker revenue outlook.
However, it's worth noting that the company warned results could land at the lower end of the range if market conditions deteriorate further. That suggests management is cautious about the near-term outlook, and investors should be prepared for more volatility in the housing market.
Broader market context
Rightmove isn't the only company adjusting its expectations in response to changing market conditions. Across the Atlantic, Advanced Innergy cut its 2026 outlook due to geopolitical tensions and rising supply costs, while RWE lifted its 2026 outlook after a strong first half. These contrasting moves highlight how different sectors are navigating a mixed economic environment.
In the UK, the housing market has been a key area of concern for policymakers and investors alike. The Bank of England's interest rate decisions have a direct impact on mortgage affordability, and any future rate cuts could provide some relief. But for now, the market remains subdued, and companies like Rightmove are adjusting their expectations accordingly.
What to watch next
Investors will be watching Rightmove's next earnings report for signs of whether the slowdown is stabilising or worsening. Key metrics to watch include the number of listings, the average revenue per advertiser, and any commentary on the new-build market. If the housing market remains weak, Rightmove may need to revise its outlook again.
For those holding Rightmove shares, the shareholder return plan offers some reassurance, but the reduced growth forecast is a clear signal that the company is bracing for a tougher period. As always, it's important to consider how this fits into your broader investment strategy and risk tolerance.
In the meantime, the broader UK property market continues to face headwinds. House price growth has slowed, and with mortgage rates still elevated, the outlook for the sector remains uncertain. Rightmove's revised guidance is just one more sign that the housing market's slowdown is far from over.
