Housebuilding improves but caution abounds

Feb. 1, 2010
Leading housebuilders have sent a message of cautious positivity to the City in a series of statements in the first weeks of the new year. The message from all the top firms was broadly similar – business is improving but there are still significant uncertainties in the market, not least the pressure on new mortgage supply. Typical of these was Persimmon which said: “Whilst we remain cautious until mortgage availability and the general economy improves, we have continued confidence in the long term future of the UK market.” The firm announced that forward sales are 40% ahead of a year ago with the strategy of focusing on family housing proving to be “of great benefit”. Barratt said its forward sales are up 43% and debt reduction “better than expected” but remained cautious “with growth likely to be constrained by economic uncertainty and a lack of mortgage finance.” Taylor Wimpey said it has maintained its “encouraging performance” and that its private order book rose 62% over the year to 3,048 homes, against 2008’s 1,887. The firm said it is “active in the land market” but added: “The risks of further weaknesses in the wider economy and reduced mortgage availability remain.” <br>

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