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City expresses confidence in Rightmove's business

22 June 2009
Written by rosalind renshaw

Shares in Rightmove have strengthened after City analysts expressed confidence not only in the company’s management team but also in house price recovery in 2010.

Ironically, asking prices for new properties on Rightmove – according to the company’s house price report, out today – have fallen back by 0.4% so far this month, but still show a rise of 6% since January.

This optimism is despite a growing number of price cuts of houses that have stuck on the market: there were 62,519 price reductions in June, reported on Rightmove’s Property Deal Weekly, compared with 59,072 in May.

The site also reports a severe shortage of new instructions – 52.3% down in London, 45% in the south and 39% in the north compared with a year ago.

However, agents still remain stuck with a lot of their older stock: average stock per branch remains at about 70, as it has for the last six months.

Rightmove commercial director Miles Shipside said: “We would normally expect this to fall, given the lack of new stock coming to market, and the pick-up in sales and mortgage approval figures. This confirms reports that fresh stock of the right type is saleable if priced correctly. However, older stock is far less saleable if it does not match current mortgage lending criteria.”

He warned: “It’s a mistake to confuse the upturn in inquiries and sales with a return to a more normal market. While conditions are much improved on the darkest days of last year, we are now starting to see some big distortions and wild swings due to the combined effects of recession and restricted mortgage availability.”

Comments

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    haven't all the agecy chains such as Connells Halifax and Countrywide who once had an interest in RM since disposed of them? Some as stated with spectacularly bad timing

    • 26 June 2009 17:07 PM
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    "Spunked up the wall" - James, is that you??

    • 26 June 2009 16:35 PM
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    If I recall some bright spark at Connells sold about £15m of these shares less than 12 months ago when they were trading at less than £1.50! oh well they are always boasting about how much money they've got and what they are going to do with it they can no doubt afford to have spunked £15-20m up the wall on what must be up there as one of the bumest calls of 2008!

    • 26 June 2009 13:02 PM
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    Yes £200 is what I have been quoted to stay above my competition.

    • 25 June 2009 18:06 PM
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    Very interesting - only a matter of time before they started charging this way. Sure EAT will investigate.

    • 25 June 2009 08:51 AM
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    Is that true about Globrix? Rosalind can you seek some confirmation of that? An interesting move if it's true especially given the traffic to their site.

    • 25 June 2009 08:13 AM
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    I assume you will be paying the £200pm that Globrix are about to start charging then Mr Brightmove?

    • 24 June 2009 16:42 PM
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    Don't believe anything. If you want a real picture of what is happeing in the world of property sites go to www.alexa.com and see for yourself. Type in a main website and then any other websites, and it will give you details for free on a number of facts. Only spend money where it works please and stop creating more never achievers.

    • 23 June 2009 16:29 PM
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    Mr Brightmove, according to the April 2009 Comscore figures Gloxbrix had 422,000 visitors in the month compared to 2.9m visitors to Rightmove. Based on that evidence I don't think the dinosaur called RM is dead just yet!

    • 23 June 2009 08:14 AM
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    mmmmm i bet Connells are NOW kicking themselves for selling their bit out!

    • 22 June 2009 21:05 PM
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    Rightmove has a number of rivals hot on their heels. I would rather put my money with Globrix than Rightmove which is fast becoming a dinosaur in a modern changing world.

    • 22 June 2009 15:40 PM
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    RMV stock has declined quite sharply in the last week or so as the laughably hyped 'recovery' in UK resi property stalls. The futures markets are pricing in 10-15% further downside in prices in the next 3 years. RMV stock looks a good short to me.

    • 22 June 2009 11:19 AM
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    The City Analyst is a fool. Rightmove is only successful because it is partially owned by a group of major Estate Agents who are contractually obliged fund it. Otherwise is would have gone pop years ago.

    • 22 June 2009 10:53 AM
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