Rightmove: Demand surges 50 per cent after housing market reopens
Property platform Rightmove said demand was up 50 per cent in June and July as potential buyers sought new homes after months spent in lockdown.
Rightmove’s share price jumped 8.93 per cent to 629.4p this morning after the company reported a bounce in activity after the housing market reopened.
The figures
In the six months to 30 June revenue fell 34 per cent to £94.8m, after Rightmove offered a 75 per cent discount to customers between April and June.
Operating profit plunged 43 per cent, from £108.2m to £61.7m.
Basic earnings per share also fell 42 per cent, to 5.7p, and the average revenue per advertiser dropped 34 per cent to £712.
Rightmove did not announce an interim dividend.
However, between 1 June and 31 July demand for sales properties has been 50 per cent higher than the same period in 2019. Rental demand is up 20 per cent.
Why it’s interesting
Rightmove said the jump in activity is partially due to pent up demand as the UK emerged from its coronavirus lockdown.
However, it also said that some buyers have decided to move following months at home during lockdown. Seperate research has previously suggested that more buyers are searching for properties with gardens and outside of city centres.
“Rightmove data suggests that the significant increase in activity is being driven not only from the pent up demand from the period of lock down, but an increased number of home hunters who have decided to move following the experience of lock down,” the company said.
What Rightmove said
Chief executive Peter Brooks-Johnson said: “Following the reopening of the housing market on 13 May housing market activity is at record levels, with evidence of new home hunters coming into the market with changing needs as they reassess their priorities and further incentivised by the temporary stamp duty holiday.
“Rightmove has extended its lead as the place home hunters turn to first for their move. It’s quite incredible that 65 of our record days have been since 13 May. I’m pleased that our customers are choosing to invest in our digital solutions to take advantage of this record demand.
“Despite the current strong market we’re mindful that potential economic challenges and further Covid restrictions in the second half of the year make it hard to predict how sustained the increase in activity will be.”