Visitors slow but price growth strong

Sept. 1, 2002
The HBF survey for July shows that although visitor and net reservations growth has slowed further, prices are still rising strongly.Incentives are being reduced, but at a much slower pace. Housebuilders remain optimistic about sales in 2002. <p></p><p>Housebuilders attribute the slowdown in net reservations to special factors in June and shortages of properties to sell in June and July. But the price and incentives balances suggest there has been some easing in demand pressures as well.</p><p> NHBC quarterly figures for the second quarter of this year reveal that applications to build new homes in the private sector rose 24% on the same period last year (41,506 against 33,563). </p><p>But its ability to buy index dropped four points year on year (114 to 110), revealing homes to be less affordable.</p><p>Government figures find that 13,400 dwellings were started in Great Britain in June 2002 compared with 17,000 in June 2001. </p><p> Some 46,600 starts were estimated in the three months to June compared with 48,800 in the first quarter of 2002. </p><p> The ODPM confirmed that the June low figures reflected the Jubilee Bank holidays and the World Cup. </p><p><b><br> <b>HBF Monthly Survey Summary Results</b></b><br><b><br> <b>Activity in the month compared with the …

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