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With up to150 estate agents closing per week and 4000 jobs lost in 2008 Rightmove still remain confident
Rightmove has warned investors in its annual report that with increasing numbers of estate agents closing, (150 a week according to a recent report) and up to 4,000 jobs lost in the sector in 2008 the slower housing market would inevitably take its toll on their results...
The firm stated that its retention rate for estate agents - the proportion who keep using the website to advertise properties - has slipped to 85 per cent this year, compared to 92 per cent in 2007.
Rightmove, currently has 19,500 advertisers (estate agents) and blamed the decline on "an increase in agents ceasing trading". Further they warn that the number of agent closures will increase during the quarter to 30 June this year.
In a further sign of the troubled housing market, Rightmove said the average time that new home developments were staying on the website was lengthening. 200 developers have switched to 12-month advertising contracts instead of monthly deals as the selling time increased. Despite the housing market slowdown, Rightmove told investors it had continued to trade strongly this year.
Its interim management statement says:
"The outlook for the UK property market is very poor with recent announcements on mortgage approvals and from new home developers showing the scale of the slowdown.
"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 and a switch among small developers to the use of estate agents, then there will be an adverse impact on the Rightmove business.
"Even reflecting a weak outlook for the UK housing market and for property advertising generally, the Board has confidence in meeting market expectations for the current year."
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