Rightmove raises 2026 EPS growth forecast to at least 7%

Rightmove has upgraded its corporate financial outlook, announcing that it now expects underlying earnings per share growth of at least 7% for 2026. This represents an upward revision from its previous guidance of at least 5%, even as broader macroeconomic headwinds and elevated borrowing costs continue to exert pressure on the wider UK property market, affecting buyer demand and transaction volumes across the country.

The upgraded earnings guidance from Rightmove highlights a resilient corporate performance despite challenging operational conditions. While underlying earnings per share growth has been revised upward, the platform's revenue growth is anticipated to land between 6% and 7%, aligning closely with previous expectations. Underlying operating profit growth is projected to remain at least 3%. Average revenue per advertiser growth for estate agencies remains steady, though developer spending trends in new homes have seen adjustments. During the four months leading to October 31, 2026, the portal noted that buyer demand fell 10% and sales agreed declined 9% compared to the same period a year earlier. Furthermore, the average five-year fixed-rate mortgage rose to 5.5% on October 31, 2026, moving up from 5% on June 30, 2026.

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At the same time, the wider housing sector is navigating a difficult period. Data from the Lloyds House Price Index revealed that UK house prices dropped by 0.6% in October 2026, bringing the average property price down to £296,285. This contributed to an annual price decline of 1.2% for October 2026, marking the sharpest yearly drop recorded in three years. Similar trends were reflected in reporting by Mortgage Soup, which noted that consecutive monthly contractions have added to the scrutiny facing prospective buyers and homeowners, coinciding with the Bank of England's decision to increase Bank Rate to 4%.

Market observers attribute much of the downward pressure to borrowing costs and tightening household finances. Andrew Asaam, mortgages director at Lloyds, pointed out that housing demand is being tested by a challenging economic backdrop marked by renewed inflationary pressures and squeezed household finances. Asaam noted that these pressures are keeping borrowing costs high and making buyers more cautious, though he suggested that wages continuing to rise faster than property prices should gradually narrow the gap and improve affordability over time.

Regional disparities remain a defining feature of the current property landscape. While southern England and Greater London experience notable contractions—with London recording the largest annual decline, down 3.1% year-on-year to an average of £524,892—other parts of the UK continue to demonstrate relative resilience. Northern Ireland and Scotland have posted positive annual growth figures, with Northern Ireland recording annual price growth of 4.4% and Scotland posting a 2.8% increase, though overall market activity remains subdued as purchasers weigh their options against broader cost of living pressures.

Broader financial market volatility has also played a role in shaping investor sentiment. As highlighted in coverage of the FTSE 100, global equity markets experienced risk-off moves driven by technology sector jitters and shifting macroeconomic forecasts following political shifts in the United States. Meanwhile, as detailed in market reports from Wall Street and London, shifting employment data and central bank policy expectations continue to influence borrowing costs and investment flows globally, with analysts observing how persistent economic resilience in certain sectors complicates future interest rate decisions.

What to Watch Next

• Upcoming corporate earnings announcements and end-of-year trading updates from major UK property and financial institutions.
• Further movements in fixed-rate mortgage pricing as lenders respond to evolving monetary policy expectations and Bank of England rate decisions.
• Potential policy measures and housing announcements anticipated in upcoming government fiscal statements and budgets.
• Regional property price indices and housing transaction volumes heading into the new year.