Rightmove plc (LON:RMV) shares fell 4.12% on Tuesday to close at 484.6 pence, reversing the prior session's 3.37% advance. The decline came without a specific company filing and was driven by a fresh batch of UK housing data that painted a mixed picture: asking prices rose, but buyer demand weakened.
Price Gains Mask Demand Weakness
According to Rightmove's own house price index, September asking prices increased 0.7% month-over-month, the first rise since May. However, buyer inquiries fell 9% compared with the same month last year, while the number of available homes reached a 12-year high. The divergence matters because Rightmove's revenue depends on estate agents and homebuilders, whose health and listing competition determine the portal's pricing power.
Three-Session Reversal
Tuesday's close of 484.6p followed a 3.37% gain on Monday to 505.4p and a 1.61% decline on September 18 to 488.9p. Monday's rise occurred on volume of 6.253 million shares, 1.55 times the 20-day average of 4.023 million. Tuesday's turnover was lighter at 2.684 million shares, or 0.67 times normal, suggesting the sell-off was not driven by heavy institutional activity.
Regional Divide and Affordability Pressures
Regional data showed a stark split. Scottish asking prices climbed 4.2% year-over-year, while London prices fell 2.6%. Homes in the capital also took more than twice as long to find a buyer. Nationally, the average two-year fixed mortgage rate rose to 5.29% from 5.09% a month earlier, keeping affordability stretched. Rightmove noted that 74% of sold homes had been priced correctly at first listing, a sign that overpricing remains a risk.
Guidance Cut and Operational Challenges
In July, Rightmove reduced its 2026 revenue-growth forecast to 6%-8% from 8%-10%, attributing the cut entirely to fewer new-home developments. First-half revenue rose 7% to £225.8 million, with agency revenue up 9% and revenue per advertiser up 8%. However, new-home developments declined 6% year-over-year. While Rightmove maintains strong portal reach—90% of portal time under Comscore and 75% under Similarweb—user minutes fell to 8.4 billion from 9.1 billion.
Analyst Views and Outlook
Analyst targets for Rightmove range from 429p to 665p, reflecting a debate over whether resilient agent pricing can offset weaker transaction volumes. Jefferies has a Hold rating with a 465p target, Citigroup is Neutral at 486p, Berenberg is Buy at 575p, Deutsche Bank is Buy at 665p, and JPMorgan Cazenove is Underweight at 429p. The next major test for the company will be its full-year results on February 26, 2027, when investors can assess whether agency pricing has compensated for further declines in new-home listings.
