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New residential property market "on the right tracks"
31/08/10
Edited by Tom Bardsley.The market for new residential property is "on the right tracks" for recovery, according to one analyst.
Vernon Pethard, managing director of newhomesforsale.co.uk, said his site has seen visits from potential buyers increase at a "rapid pace" in recent months.
He added there has been a more than 50 per cent rise in "solid enquiries", which suggests people are not just window shopping.
This apparent increase in demand for new homes is coupled with improving conditions for major house builders.
Last week, Persimmon said its pre-tax profits for the opening six months of 2010 had increased more than ten-fold year-on-year to stand at £101.4 million.
Its completions were up 16 per cent of the first half of 2009 at 4,657 homes, while the average selling price of these properties was 8.6 per cent higher at £168,936.
Elsewhere, builder Bovis said its pre-tax profit for January to June stood at £3.5 million. This is compared to a loss of £8.6 million for the corresponding period of last year.
"Persimmon's results and the announcement from Bovis Homes ... is a clear signal that the UK new homes market is on the right tracks," Mr Pethard said.
