November 10, 2009
Encouraging News For UK Housebuilders
Home sales in the financial year to date have been remarkably stable with net private reservations averaging 45 homes per week…
Housebuilders have reported an encouraging quarter, as UK house prices start climbing again.
Taylor Wimpey said in an interim statement: "Our own performance has remained encouraging since the half year.
"We did not experience the usual industry seasonal slowdown over the summer and sales rates have remained solid into the autumn."
Redrow Homes, which held its annual general meeting today, also released an upbeat statement.
"Home sales in the financial year to date have been remarkably stable with net private reservations averaging 45 homes per week, including the normally seasonally weaker months of July and August," the company said.
"Total net private reservations achieved in the first 18 weeks are 47 per cent ahead of the same period last year with cancellation rates having returned to historic norms."
Taylor Wimpey said it would be increasing its build rate, while Redrow plans to buy more land following a rights issue, which raised around £150 million.
However, mortgage availability is still a problem, according to Redrow, while down valuations by surveyors is also an issue.
A growing confidence in the housing market has also helped Rightmove.
The property website said advertising has increased by five per cent since the house prices reached a low point in February.
House prices have been rising over the summer and into autumn, as buyers are attracted by low interest rates and the hope of getting a bargain.
