Online property portal Rightmove has announced that with its eligibility it plans to access the government’s Covid Corporate Financing Facility (CCFF).
The CCFF, which was announced by the chancellor on 17 March is designed to provide funding to businesses by purchasing commercial paper of up to one-year maturity, issued by firms making a material contribution to the UK economy.
It aims to help businesses across a range of sectors to pay wages and suppliers, even while experiencing severe disruption to cashflows.
After accessing the facility and with its current cash balance Rightmove said it will have “sufficient liquidity” and will be “well positioned” to return to growth.
In a short statement, it said: “Rightmove is pleased to announce that it has received confirmation that it is eligible to access the UK Government’s Covid Corporate Financing Facility (‘CCFF’). We have not yet issued any commercial paper under the scheme.
“The combination of our current cash balance, our committed Revolving Credit Facility, which we have extended by a year to February 2022, and access to the CCFF will, in our view, provide Rightmove with sufficient liquidity and leave us well positioned to return to growth as markets normalise.”
It comes a week after it reported a 41% decrease in asking prices this month amid the coronavirus pandemic.
Rightmove also revealed that UK house prices fell by 2.1% annually to £311,950 in April due to the coronavirus outbreak, with “not enough properties coming to market”.
Total available stock for sale also decreased by 2.6% since the lockdown was announced, with over 48 properties on the platform per agent.
The property portal has described the current housing market as “paused”, but revealed an 11% increase in sales agreed before the lockdown was announced on 23 March.