Housebuilders face circle of mixed fortunes.
Housebuilders recover – at a price
Published: 06 August, 2012
UK: Government initiative, New Buy, is aiding housebuilders' recovery. The scheme, whereby the Government partially underwrites first-time buyers' mortgage has been credited with the uplift in performance from Barratt, Persimmon and Taylor Wimpey.
House prices remained stable despite the Nationwide index showing a 2.6% fall last month.
Taylor Wimpey announced improved figures last week. Its half-year pre-tax profits have more than doubled. Barratt's pre-tax profits rose 51% and Persimmon's 36%.
Noble Francis, the Construction Products Association's economics director, said large housebuilders were doing well, but cautioned that sectors of the construction industry that are publicly funded will start to see work fall off sharply in the next 18 months.