Rightmove has downgraded its revenue growth forecasts for 2026 whilst announcing plans to accelerate its artificial intelligence development programme, according to a stock market update covering July to October.
The property portal now expects revenue growth of 6% to 7% for 2026, down from previous guidance of 6% to 8%. Average revenue per advertiser (ARPA) forecasts have also been revised to £100-£110, compared with the previously expected £110-£120.
The company attributed the revision to dynamics in the new homes sector affecting developer spending, whilst maintaining its expectations for estate agency ARPA.
AI development accelerates
Despite the revenue adjustments, Rightmove reported delivering 60% more product releases during the period compared to the same timeframe previously, and is on track to double its delivery pace. Recent AI releases include conversation search, comparison tools and call transcription functionality.
The portal has upgraded its underlying earnings per share growth forecast to at least 7%, compared with 5% previously, reflecting increased operational efficiency.
Johan Svanstrom, Chief Executive of Rightmove, said: “This has been a quarter of strong strategic progress, in which we delivered innovation at our fastest-ever pace, compounding on top of our trusted brand and powerful data.”
Market conditions weigh on activity
Rightmove’s update highlighted challenging market conditions, with higher mortgage rates impacting affordability and estate agent confidence. Buyer demand was down 10% and sales agreed fell 9%, whilst record stock levels have created downward pressure on house prices.
As of 31st October, the average house price stood 0.3% below the equivalent period one year earlier. The data aligns with recent market analysis showing subdued transaction levels across the sector.
The rental sector showed more resilience, with enquiries per available property increasing and rental prices up 2.9% year-on-year.
New homes activity remained subdued, with 6% fewer developments on site as of 31st October compared with 31st December 2025.
Government scheme impact uncertain
The government’s announced ‘Your First Home’ scheme has improved housebuilder sentiment, though the portal noted the initiative remains subject to implementation. With an anticipated launch date in the second quarter of 2027, any positive impact on housebuilding volumes is not expected until late 2027 onwards.
For 2027, Rightmove forecasts revenue growth similar to 2026 levels, with underlying operating profit growth between 4% and 7%. The company projects underlying earnings per share growth of at least 10%.
Svanstrom noted that core membership remains stable with strong partner retention levels, and that the business resilience combined with a recently announced debt facility has enabled significantly increased shareholder distributions.
The forecasts come as other major property firms adjust their market expectations in response to affordability pressures and economic uncertainty.
