The markets seemed to be taking the largest annual drop in house prices since 2009 in their stride – with companies with exposure to the property market largely flat or modestly higher.
The seventh consecutive monthly fall in prices may be dispiriting, but the fact demand is under pressure is not new news. As such, it has largely already been factored into the share prices of estate agents like Foxtons, housebuilders like Taylor Wimpey and property listings site OnTheMarket.
AJ Bell’s Russ Mould said: “Though Savills, which provides a broad range of services across the real estate space and is thus a good bellwether for the sector, was lower in early trading on Friday.
“The performance of OnTheMarket’s dominant rival Rightmove has been impressively durable, reflecting its advantages as a market leader.
“Being on top creates a virtuous circle for Rightmove. Its site has the most listings and is therefore the one which prospective property buyers will go to when looking for their next home.
“This reinforces its position as a must-have product for estate agencies and gives it significant pricing power when it comes to securing subscriptions from housebuilders and estate agents.
“It has held up well through previous downturns – with the need to sell properties to stay alive making the product arguably even more crucial to agents.”
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