Tuesday, Apr 22, 2008
Are the home builders going bust?
Share prices (BBC): Market data
Check out some of the share prices for the big home builders - Persimmon, Taylor Wimpey, Barratt etc.
Mostly these guys share prices are down by around two thirds over the last year, yet the median view taken by the City for house prices is still for no more than a modest fall.
Can these guys weather a house price fall of more than 20%? I have my doubts..
Posted by uncle tom @ 10:16 AM (1268 views) Add Comment
6 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Adrian said...
During the last house price crash I remember a lot of home builders going bust. Bradley Stoke in Bristol became known as Sadly Broke and lots of developments didn't get completed and the promised amenities that they told home buyers that would be built never happened. I know some smaller developers where I live are already having financial troubles and are having to rely on grants to help them complete developments (they then call these developments affordable housing and put a price tag of $180k on them).
2. indiablue19 said...
Maybe these are the people the government should be subsidising, to create homes for those who need them, with a cap on profits -- rather than bailing out greedy bankers and shareholders who live in a state of excess, with multiple homes. Secure bank deposits for the common man, and make sure he/she can still have a place to live. Let the greedy know how much is enough.
There will be no diminished need for housing, that's certain. Whatever else happens to the housing market the need for four walls and a roof for many more people is what everybody here has been on about.
3. Government Planner said...
In the longer-term, housebuilders profits will increase once land prices fall in-line with house prices. At present, the delay is caused by having to sell at peak prices in order to cover the cost of land agreed in deals made before the market turned; such is the cycle of the market. However, an inability to borrow from banks that are hording money may cause addtional problems at this particular peak.
4. crash bandicoot said...
These guys are in the same position as the banks. They have been growing fat and lazy in the times of plenty. It is now time to get leaner and meaner, starting by looking at land values. The last thing that we need is government subsidy to keep the price of our land artificially high.
5. Sieoil said...
We purchased a house in 2007 and placed a deposit of £13000 with persimmon. The house has been severly delayed and is due to be ready in August 2008. It has now been down valued by £30k and we don't know wether to back out with current climate. We will loose the deposit but we are unsure if we will be eligible for any other penalties. The question is are persimmon going bust they are very keen to get my house built.
6. This comment has been removed as it was found to be in breach of our Blog Policies.