Rightmove PLC (LSE:RMV), the UK property listings website, has been downgraded to ‘hold’ from ‘buy’ by Panmure Liberum, which cut its price target to 545p from 585p amid a worsening housing market outlook.
Analyst Sean Kealy said a simultaneous slowdown in estate agency and housebuilding activity could create an unusual headwind for the business in 2027.
The downgrade follows a rally of about 20% in Rightmove shares since the broker’s previous research note in July, leaving limited room for further gains as growth expectations weaken.
Panmure Liberum expects UK house prices, rising mortgage rates and declining property transactions to weigh on estate agents, while housebuilders are reducing the number of sites marketed to prospective buyers.
Rightmove’s measure of agreed property sales fell 9% year on year in September and 8% in October, indicating that housing market activity remains under pressure.
The broker also highlighted declining stocks of homes under construction, which could reduce the number of new properties advertised on Rightmove and constrain revenue from housebuilders.
Market expectations have shifted from interest rate cuts at the start of 2026 to potential increases, with investors anticipating the Bank of England’s base rate could reach 4.75% by September 2027.
Panmure Liberum expects Rightmove to remain profitable and continue growing, but forecasts revenue growth of 5% in 2027, which would be among the weakest rates in the company’s history outside the global financial crisis and the Covid-19 pandemic.
The broker forecasts revenue of £475 million in 2027, up from an estimated £452 million in 2026, while earnings before interest and tax are expected to rise from £305.3 million to £315.3 million.
It has reduced its 2027 revenue forecast from £490 million previously, reflecting weaker expectations for estate agency listings and housebuilder advertising.
The broker expects revenue from estate agency customers to grow by 4.5% in 2027, while new homes revenue is forecast to increase by just 1%.
Growth in commercial services, mortgages and other smaller business lines should help offset some of the pressure on Rightmove’s core operations.
Panmure Liberum said Rightmove still deserved a valuation premium to peers because of its relatively resilient business model and long-term growth potential but lowered its valuation multiple to reflect weaker forecasts.
The broker also noted that Rightmove was among the UK market’s most heavily shorted shares, suggesting investors remain concerned about the housing market outlook.
