Rightmove Expects UK Property Market to Split

The latest statement made by Rightmove Plc, one of the largest UK property companies, suggests that the British property market shows some early signs of recovery despite the fact that property values in the areas that were hit the most will continue to decline. At a Rightmove conference, which was held on Friday, the company’s managing director, Mr. Ed Williams said that the worst period for the UK property market must have been winter of 2008; at the same time, according to him, the housing market reached its bottom at different times, which depended on the indicators used. He also added that the country is highly likely to live through a period of so-called split market, during which some areas will prosper in terms of housing, while others will languish. According to Mr. Williams, the split market phenomenon will be caused by various unemployment rates in different areas; he said that those “black spots” characterised by high unemployment will suffer a lack of demand and an excess of supply, while “problem-free spots” will see home values increasing. In general, he believes that UK house prices have already grown by 5-10% since the beginning of this year. The company also reported its intentions to beat the expectations for the year of 2009 as its net profit has already edged to £13 million, which is £0.4 million more than in 2008. Company’s sales in the first 2 quarters of 2009 fell 11%, which figure does not exceed the expectations of analysts. The company also reported an increased number of estate agents returning to British property market. Rightmove has expanded its estate agents’ membership since the beginning of 2009 as the latter report significant upturn in market activity, which, unfortunately still remains at the level below normal.