Demand pushes builder salaries to over £40,000

Oliver Smith
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DEMAND for new homes is so high that construction workers can attract salaries of more than £40,000, the
boss of housebuilder Galliford Try said yesterday.

Chief executive Greg Fitzgerald told reporters that it was also becoming tougher for the company to source building materials.

“We have made excellent progress as a group in the financial year and delivered a record profit before tax,” Fitzgerald said in a statement.

His comments came as the firm reported a 17 per cent rise in full year profits to £74.1m yesterday.

Revenue for the group fell two per cent to £1.46bn, from £1.5bn in 2012, on the back of a small reduction in the number of completed homes

Housebuilding sales currently reserved, contracted or completed are up 16 per cent to £405m, supported by government schemes to provide greater mortgage availability, it said.

Construction, which makes up 62 per cent of the business, posted a weaker margin of 1.7 per cent.

Separately, housebuilder Crest Nicholson reported reservation rates over the period since 1 May were up 46 per cent compared to the same period in 2012 and that it remained on track to deliver its planned output in 2013.

Chief executive Stephen Stone said, “The increased volume of reservations confirms the strong desire for home ownership that exists in this country and it is good to see that aspiration becoming a reality for many.”