MARKET REPORT: Lettings platform quits Rightmove in charges row

With the UK property rental market remaining challenging, Rightmove has suffered a blow.

The online real estate portal operator revealed its parting with lettings platform OpenRent.

The move comes a month after OpenRent quietly withdrew from the Rightmove site as a result of the operator looking to hike fees for certain third-party property agents and platforms which use the portal.

Rightmove said that after conditions between the two could not be settled, the partnership would now expire on September 1.

Online real estate portal operator Rightmove revealed its parting with lettings platform OpenRent

OpenRent made up around 8 per cent of listings on the site in July. Panmure Liberum analyst Sean Kealey said the news will play into fears that Rightmove’s pricing power is weakening.

Despite OpenRent walking away, the FTSE 100-listed firm stood by its full-year revenue guidance for growth of 7 per cent to 9 per cent, while underlying operating margins were seen at 70 per cent. 

Rightmove shed 4.3 per cent, or 23.8p, to 524.2p.

Following the sharp falls over the past few sessions, UK markets managed to stabilise.

The FTSE 100 index closed up 0.2 per cent, or 18.46p, to 8026.69 and the FTSE 250 index rallied 0.7 per cent, or 130.96 points, to 20367.7.

Keller topped the FTSE 250 risers, up 11.6 per cent, or 160p, to 1538p as the geo-technical engineering company announced a surge in first half profits and a higher dividend as it anticipates sharply beating full-year expectations amid a buoyant North American market.

IWG jumped 4.3 per cent, or 6.9p, to 166.5p as the serviced offices firm, formerly known as Regus, reported record first-half results, driven by a strategic network expansion across its brands.

The FTSE 250-listed firm achieved its highest-ever system-wide revenue and rewarded investors by reinstating dividend payments.

Also on the up, Ramsdens rose 5.2 per cent, or 10p, to 202.5p as the pawnbroker lifted its full-year pre-tax profit expectations noting that good trading momentum had continued into the second half, helped by higher gold prices which drove a better-than-expected performance in the precious metals segment.

Zotefoams remained flat at 494p as the cellular material technology provider reported double-digit profit growth in the first half, with the company benefiting from greater demand for footwear.

Waste management firm Renewi added 1.25 per cent, or 8p, to 650p as it reported growth in first-quarter revenue and underlying earnings.

But Domino’s Pizza dropped 7.1 per cent, or 22p, to 287p as it warned that full-year profit would be towards the lower end of the range of market expectations after a slower start to the first half.

Morgan Advanced Materials shed 1.9 per cent, or 6p, to 309.5p as the firm said it remained cautious about demand in several end-markets even as it reported a robust set of half-year results.

Travis Perkins fell 0.4 per cent, or 3.5p, to 876.5p as the builder’s merchant cut guidance for full-year earnings after its first-half profits slumped by a third.