UK HOUSEBUILDERS GET BOOST
One of the country's largest housebuilders, Barratt Developments, reported today that its trading conditions have improved as homebuyers are returning to the housing market.
In a positive report, Barratt revealed that the number of private reservations per site of land it holds had risen by a third as optimism about the recovery of the property market sustained throughout the second half of the year.
Chief executive, Mark Clare, said the market had ‘improved’ in the three months to November and overall prices had risen, but he warned that the ongoing drought of mortgage products continued to pose a threat to the recovery of the sector. He said:
“While trading conditions in the housing market have improved, activity levels will remain constrained until the availability of mortgage finance increases, particularly at higher loan to value levels.”
Barratt’s news follows an upbeat statement from rival housebuilder Persimmon yesterday. It reported a healthy order book and reduced debt levels.
Persimmon chief executive Mike Farley said interest from first-time buyers had improved, with 18% of sales across the group now being to those just getting onto the property ladder, compared to 10% in 2008. He said:
“Our focus towards building houses rather than apartments has also helped us as we have seen more people wanting to live in family homes.”