Property giant Rightmove has appealed to the UK Government to maintain the stamp duty threshold for first-time buyers, amidst reporting a steady yet “uninspiring” financial performance.
Financial Performance Highlights
In its half-year results to 30 June, Rightmove reported a seven per cent increase in revenue, reaching £192.1 million, driven by contract renewals, package upgrades, and additional product investments by agents and new homes developers. Operational profit saw a modest two per cent rise to £131.6 million, while earnings per share increased by two per cent to 12.4p.
“We’re pleased to… be progressing in executing our plan to build an even more valuable digital platform for the UK property industry,” said Johan Svanstrom, chief executive of Rightmove. Despite maintaining an 86 per cent market share, profit margins slightly decreased to 69 per cent from 72 per cent in 2023.
Market Dynamics and Innovations
Despite higher listing fees, Rightmove continues to hold its ground against competitors like Zoopla and OnTheMarket. Innovations such as its digital mortgage tool and integrated estate agent broker services have been well-received, offering users seamless access to mortgage advice.
In the lead-up to the General Election, the property market experienced a slight dip due to economic concerns and potential interest rate changes. Svanstrom commented, “Our performance came against the backdrop of the sustained challenging mortgage rate environment. With the election now concluded, the property market looks forward to potential interest rate reductions which will further stimulate activity.”
Call for Stamp Duty Relief
Rightmove’s analysis revealed that only 37 per cent of homes for sale will be eligible for first-time buyer stamp duty relief in England by April 2025, down from 58 per cent currently. Buyers now enjoy a stamp duty exemption on homes up to £450,000, but this is set to reduce to £300,000 in April 2025. The South East is expected to be most affected, with fewer than one in ten homes qualifying for stamp duty relief.
Tim Bannister, Rightmove’s property expert, stated, “Stamp duty is a barrier to movement, and keeping the existing thresholds seems like a logical step to providing some first-time buyer support. Even greater stamp duty reforms in the future could have wider implications, such as helping those who are considering downsizing.”
Industry Reactions
Analysts offered varied perspectives on Rightmove’s results. Charlie Huggins from Wealth Club described the performance as “solid but uninspiring,” highlighting the need for innovation despite revenue and profit growth. Conversely, Anthony Codling from RBC Capital Markets noted Rightmove’s resilience, stating, “When the housing market is buoyant it makes a lot of money, and when the housing market is tough it also makes a lot of money, suggesting that come rain or shine the UK’s love affair with property has firmer foundations than the underlying economy.”
Nathan Emerson, CEO of Propertymark, emphasised the importance of maintaining stamp duty relief: “Cutting stamp duty helped many buyers take their first step onto the housing market during the pandemic. At a time where house prices remain unrealistic and challenging for many people, it is an important part of the process that the new UK Government looks to help people enter the housing market and retains the stamp duty threshold. But there needs to be a raft of other measures to stabilise house prices too.”
