It seems that property developers are more than happy with the state of the UK’s housing market, according to recent reports.
Property developers Persimmon and Bovis have posted large increases in pre-tax profit for the first half of the year, leading to increased confidence about the trajectory of the British property market.
Persimmon has enjoyed a 57% rise to £208.9m for the six months to the end of June, whilst Bovis have announced an increase to the tune of 166% to £49.4m before tax, who also report a record number of house completions for the period.
With both house builders disclosing the figures within the last week, it brings a further wave of optimism as the housing market recovers on the back of the UK’s economic growth. Permission said it had capitalised on the strengthening outlook and they will seek to press ahead with the development of around 100 new sites over the next six months.
Jeff Fairburn, group chief executive, said that the figures reaffirmed Persimmon’s ability to meet challenging objectives, set as part of their ten year plan in 2012.
He added that he was encouraged by their private sale reservation and that, despite the typically slower summer season, the rate has run 9% ahead of the same period this time last year.
Bovis believes the increased housing traction to be a result of greater buyer confidence and good access to mortgages. Much of it is down to the “greater certainty” as a result of the extended Help to Buy scheme, supported by the government.
How do you feel about the state of the housing market at the moment? Is the enthusiasm of property developers catching?