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Property giant Rightmove has urged the government to maintain the current stamp duty threshold for first-time buyers, coinciding with its announcement of financial results for the first half of 2024 that, while positive, have been described as “solid but uninspiring.”
Rightmove’s revenue increased by seven per cent, reaching £192.1 million, as estate agents and new home developers renewed their contracts, upgraded their packages, and invested in additional products. However, operating profit showed a modest two per cent rise to £131.6 million, and earnings per share also increased by two per cent to 12.4p.
Johan Svanstrom, the chief executive of Rightmove, expressed satisfaction with the company’s progress in building a more valuable digital platform for the UK property industry. In its report covering the first half of the year up to 30 June, Rightmove highlighted its stable market share of 86 per cent and a high-profit margin of 69 per cent, though this was slightly down from 72 per cent in 2023.
Rightmove has successfully maintained its position in the market against competitors like Zoopla and OnTheMarket, despite imposing higher costs on agents seeking to list properties on the platform. The introduction of features such as a digital mortgage tool has been well-received by consumers, allowing users to access mortgage advice through an estate agent broker without leaving the site.
In the lead-up to the General Election, the property market experienced a slight slowdown, as industry professionals closely monitored the UK economy and the potential for reduced interest rates.
Johan Svanstrom noted that the company’s performance occurred amidst a challenging mortgage rate environment, and he expressed optimism that the recent election’s conclusion might lead to interest rate cuts, thereby stimulating market activity.
Rightmove’s growth during the first half of 2024 has been somewhat slower compared to the previous year when revenue increased by 10 per cent. Although home listings and transactions improved during this period, both demand and supply in the rental sector softened, resulting in slower growth.
Earlier this year, hedge funds raised concerns that Rightmove’s dominance might be challenged by its competitor OnTheMarket, which has received significant investment from its US owner Costar. Despite these challenges, Rightmove has left its full-year guidance unchanged.
Today, Rightmove has called on the government to consider maintaining the current stamp duty threshold for first-time buyers. According to Rightmove’s analysis, only 37 per cent of homes for sale in England will be eligible for first-time buyer stamp duty relief in April, down from the current 58 per cent.
Currently, first-time buyers do not pay stamp duty on homes priced up to £450,000, but this threshold is set to decrease to £300,000 in April 2025. The company highlighted that first-time buyers in the South East would be most affected, as a significant increase in house prices in recent years means that fewer than one in ten homes will be exempt from stamp duty charges for first-time buyers in April 2025.
Tim Bannister, Rightmove’s property expert, emphasized that stamp duty acts as a barrier to movement and that retaining the existing thresholds would provide valuable support for first-time buyers.
