Tuesday May 6, 12:51 PM
Rightmove says housing market "very poor"
LONDON (ShareCast) - Online estate agent Rightmove (LSE: GB00B0MFTM73.L - news) expects to take substantial advertising
from regional newspapers in the current year, but cautioned if the housing market continues to deteriorate it cannot dodge the impact.The housing market currently is "very poor" it says, adding "If housing market problems result in a decline in the number of estate agents over a protracted period, together with a decline in the number of new developments commenced, there will be an adverse impact on the Rightmove business". Properties are staying on the site longer as the housing market tightens and are harder to sell, though it is benefiting from "substantial declines in property advertising in regional newspapers," as estate agents shut and ad budgets are slashed. In four months to 5 May, advertisers on the Rightmove site rose by 2% to over 19,500 with activity on the site up by 22%. It raised prices from £250 to £325 per month in January. The retention rate for estate agents has declined to around 85%, compared to 92% in 2007, as a result of an increase in agents ceasing trading. Despite the gloomy backdrop, the board says it still expects to meet market expectations for the current year.
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