Housebuilders’ updates boost recovery hopes

Kasmira Jefford
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THREE of Britain’s housebuilders said yesterday they are confident that they will either beat or meet full-year expectations, in another sign that Britain’s housing market is on the path to recovery.

Taylor Wimpey said the UK housing market has shown “measurable improvement for the first time since the downturn of 2007 to 2008” and it was likely to meet full-year forecasts.

It has completed 5,192 homes over the six months to the end of June, with the average selling price rising to £187,000 from £176,000 in the same time last year.

In a separate statement, Redrow posted a 26 per cent rise in revenue to £604m in the year to 30 June and said profit would be “at the top end of the range” of analyst estimates between £52.2m to £61.6m.

Redrow chairman Steve Morgan, who led a failed takeover bid for the company last year, said improvements in Britain’s mortgage market as well as a focus on margins had helped boost its performance.

The number of homes it completed rose 15 per cent to 2,827, of which 2,474 were private homes – up from 2,126 the previous year – while the average selling price of homes was £227,300, from £204,000 last year.

Meanwhile in a trading update Galliford Try also said it was set to report record profit for the year to the end of June.

Persimmon and Barratt Developments have also seen their share prices and sales surge in recent months since the government announced its Help to Buy shared equity scheme.