Homebuilders welcome rise of green shoots

Kasmira Jefford
Follow Kasmira
HOUSEBUILDERS Taylor Wimpey and Bovis Homes yesterday said they had continued to make steady progress since the first half of the year as their focus on margins paid off.

In a third quarter update, Taylor Wimpey said housing market conditions remained stable and while mortgage lending was still constrained, it had seen “incremental improvement” since the first half as a result of government schemes.

“We welcome the government’s recent announcements recognising the housebuilding industry’s importance to the UK economy and hope to see further improvements in mortgage lending over the coming months as the Funding for Lending scheme gains more traction,” it said.

The FTSE 250 firm said it has taken 467 net reservations under the scheme and its equivalent in Scotland “MI New Home”.

It said its order book of future completions stood at £1.1bn, up £100m from the same time last year.

Meanwhile Bovis said it remained on track to deliver “a strong increase in revenue in 2012” and expects to meet its full-year guidance for the number of homes sold.

The group said sales prices in the year to 9 November rose to £190,000, compared with £180,100 last year, while prices in the housing market remained “broadly stable” but stronger in the south of England.