Cautious optimism as housebuilders build again

July 1, 2009
<p>Taylor Wimpey and Bellway have added to the list of recent good news stories from housebuilders announcing results. Taylor Wimpey said in its pre-closing trading update that it has seen a 73% increase in its order book since the end of last year. The order backlog leapt from £562 million in December 2008 to £971 million which the volume housebuilder said “represents good progress in the current market conditions.“ Its net private reservation rate stood s at 0.6 per site per week at broadly flat prices. The company also said that it was seeing land opportunities “at prices that should be value creating for Taylor Wimpey.“ It added that it had also sold land this year at values that were close to written down levels. </p> <p>Bellway is to increase building in the southern region as it explained that the area was marginally stronger than the north. The housebuilder said that the south would see “much higher” turnover by the end of the year. The housebuilder also revealed that it would focus on purchasing land suitable for traditional two storey housing. Its stock reduced from 1,000 at the end of January to 660 in May, but the firm warned that …

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