The UK housing market is in the midst of its worst downturn in modern history, says property website Rightmove, but it is doing fine as more and more business is done on the internet.

With estate agents shutting up shop and local newspapers struggling to attract advertising, Rightmove is seeing customer numbers rise.

Today it unveiled results for the year to the end of December, showing revenue jumped 31% to £74 million, taking profits up 33% to £41 million.

Rightmove raised eyebrows a few days ago when its House Price Index showed prices actually rose 1.2% in February.

This seems to be a function of false optimism with sellers putting their prices up in the hope that the market is turning. Rightmove sees little cause for such optimism just yet, but insists that at some point things are simply bound to improve.

“The current levels of housing transactions are unsustainably low, the equivalent of people on average never moving from the first home they buy for the rest of their life-time,” it said today.

Buyers are at least expressing an interest in doing deals, even if they don't go so far as to make an offer.

The website has seen several of its busiest days ever this year in terms of emails sent to advertisers from potential home-buyers.

Managing director Ed Williams said: “These are tough times in the property market. Those serious about selling are doing more and more on Rightmove.”

It is, Williams adds, an “unbelievably challenging market” that will only show signs of improving once more mortgage finance becomes available.

House sales that do go through are at prices a third lower than the peak.

The company fired 78 staff in November, part of a cost-cutting drive that should save £5 million this year.

The total dividend of 10p a share is up from 8p last year. Today, the shares gained 101/4p to 2171/4p.