- Rightmove now expects ARPA to increase between £75 and £85 on the £1,431 made last year.
- The London-based firm said the new figures reflect the change in client mix.
Rightmove expects average advertising sales growth to be weaker than initially forecast this year, reflecting a higher number of estate agents on its platform.
Britain’s largest property portal now expects average revenue per advertiser to rise by between £75 and £85 from £1,431 last year, having previously forecast an increase of £100 to £110.
The London-based company said the new figures reflect the shift in customer mix towards letting agents and housing associations, which tend to have a smaller ARPA.
Recovery: Rightmove now expects average revenue per advertiser to increase between £75 and £85 from £1,431 last year, having previously forecast an increase of £100 to £110.
During the first four months of 2024, it gained around 250 new estate agents as members, the majority of whom were rental operators and rental-only branch counts.
Rightmove has also added more than 90 new developments to its entry-level access package, which it says is “specifically tailored” to housing associations.
He said ARPA’s growth would have been in line with its previous guidance without the adjustment in customer base.
Right Movement Actions were the biggest fallers on the FTSE 100 in early afternoon on Friday, falling 5.2 per cent to 543.2p.
However, the company maintained its annual revenue and margin forecasts, with the former expected to grow between 7 and 9 percent and the latter up to 70 percent.
Customer numbers are also expected to increase by up to 2 percent instead of falling modestly, as originally anticipated.
Johan Svanstrom, chief executive of Rightmove, said: “Overall, we continue to expect a better year for the UK housing market in 2024 than in 2023.
“Within that, we see different dynamics across the many segments we serve, with particular strength in resales.”
Rightmove’s trading has recovered sharply since the Covid-19 pandemic, as rents have soared to record levels as interest rate rises deter Britons from buying homes.
Prices have risen further as many homeowners sold their properties after the UK government removed mortgage interest relief and introduced stricter energy efficiency standards.
Average rents in the UK rose 9.2 per cent in the 12 months ending in April, according to the Office for National Statistics.
Russ Mould, investment director at AJ Bell, said Rightmove’s emphasis on the shift towards estate agents “could be instructive and imply that it is becoming harder to get new customers or upsell existing users on agent marketplaces.” traditional and new construction real estate.
He added that this “can only increase nervousness about the renewed competitive threat” from rival company OnTheMarket, which was bought by CoStar Group for £99 million last year.
