Rightmove reported on Friday, November 6, 2026, that it has lowered its annual revenue growth expectations as rising mortgage rates and a decline in new home developments impact the UK property market. The company stated that consumer affordability and agent confidence remain under pressure, leading to a 10% drop in buyer demand for resale properties during the four months ending in October.
The property portal attributed the market conditions to increasing borrowing costs, noting that the average five-year fixed-rate mortgage rose to 5.5% at the end of October, up from 5% in June. Rightmove also cited the Bank of England’s decision to increase its base rate on Thursday, November 5, 2026, and expectations of further hikes next year as factors weighing on consumer purchasing power.
According to the update, the number of new home developments fell by 6% by the end of October compared to the end of last year. Rightmove now expects its 2026 revenue to grow between 6% and 7%, down from its previous guidance of 6% to 8%. The company also reduced its projected growth for average revenue per advertiser (ARPA) from £120 to £110, citing reduced spending by housebuilders.
For estate agents and housebuilders, the impact is felt in reduced business volume and advertising budgets. Rightmove’s decision to lower its ARPA growth target by £10 per advertiser specifically reflects housebuilders pulling back on marketing spend as they bring 6% fewer developments to market. While the government’s new First Homes scheme announced in the autumn Budget has provided some optimism for builders, Rightmove noted that any resulting increase in the volume of new homes is not expected to reach the market until later in 2027. This suggests a period of limited inventory for renters looking to buy and for families seeking new-build properties.
The broader economic knock-on effects include a potential slowdown in the construction sector and a test of the pricing power of digital platforms like Rightmove. Dan Coatsworth, head of markets at AJ Bell, noted that while Rightmove maintains a dominant position in listings, its slowing revenue growth shows the limits of what it can charge agents during a market downturn. Moving forward, the company stated it will focus on integrating artificial intelligence into its platform. Investors and market analysts will monitor the Bank of England's next interest rate decisions to see if borrowing costs continue to rise, which would likely further constrain buyer affordability and housing supply.