How Housing Slump Even Effects Rightmove!

Righmove stocks fell by nearly 5 per cent, or 15p, to 306.5p today.

The UK's largest online housing website Rightmove has had some seriously bad news today as prices continue to fall and the market slumps. Sellers are loosing between 5 and 10% of their asking price and that's when the asking price is £5,000 less for their homes than they were only a month ago, with the average asking price for a property down, on average, by 2.5 per cent to £230,000 on average, according to the Rightmove web site.

So why the massive fall in share price?

Sunday papers in the UK report the National Association of Estate Agents is to launch a free rival property website that would threaten Rightmove’s dominant position.

Market shares in Rightmove, fell almost 7 per cent due to the threat of other competitive websites offering solutions for a minimal amount per sale such as the NAEA (National Association of Estate Agents). It works out over 50% saving compared to the £500 to sell with Rightmove.

Rightmove blames the mortgage drought for the semi-paralysed state of the market, adding that transactions are in danger of dropping to levels not seen since the housing crisis of the late fifties. Back in that time period around 870,000 sales were successfully completed, compared with the 1.8 million achieved last year in the UK housing market.