UK's Rightmove cuts annual revenue growth forecast on weaker new home building

July 31 (Reuters) - Britain's largest property listing firm Rightmove on Friday reduced its annual revenue growth forecast, citing softness in new home construction and sales.

Here are some details:

• Rightmove said it expects revenue growth of 6%-8% in fiscal 2026, down from previous guidance of 8%-10%.

• It expects to report full-year revenue at the lower end of that range if market conditions deteriorates further.

• Rightmove said new-home construction is at its lowest level in more than a decade, due to competition from the resale market and challenging market conditions.

• Concerns over interest rate hikes and inflation have increased caution among buyers already grappling with rising energy costs and other cost-of-living pressures.

• Rightmove reiterated its annual underlying operating profit guidance and said it expected to return £400 million ($538.28 million) to shareholders in the next 12 months, including approximately £330 million through buybacks.

• The property listing firm expects about £4 million to £7 million in exceptional costs in 2026, related to a £1.5 billion lawsuit in the UK's Competition Appeal Tribunal by estate agents.

• The company said £2.3 million of those costs were recorded in the first half of the year.

• Shares fell as much as 4% before reversing course to rise marginally at 0715 GMT.

($1 = 0.7431 pounds)

(Reporting by Simone Lobo in Bengaluru; Editing by Eileen Soreng)