Tuesday, Jan 19, 2010
Taylor Wimpey dismisses the Silver bullet
Telegraph: UK housing market can survive rise in interest rates, Taylor Wimpey argues
The boss of Taylor Wimpey, one of Britain's biggest housebuilders, has said the housing market could absorb a rise in interest rates this year without a recovery being impacted. House prices and sales volume have risen over the past few months and this could be sustained through a rise in interest rates this year by the Bank of England of up to half a percentage point, according to Pete Redfern, chief executive of Taylor Wimpey. Central banks and governments across the world are beginning to consider exit strategies from the stimuli used to prop up the global economy, but some economists fear that a premature rise in interest rates will halt an upturn by squeezing consumer spending.
Posted by jack c @ 11:29 AM (1328 views) Add Comment
7 Comments
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1. magnaman said...
Likely to need another handout in the not too distant future so bound to want to keep potential investors sentiment on the upside!
2. will said...
Boss of Taylor Wimpey tells us how he hopes consumers will be able to cope with rising interest rates - er I think not.
3. stillthinking said...
Taylor Wimpey lets the government know, no more than 0.5% please !
4. jack c said...
It's a really robust UK housing market that can withstand a bank base rate of 1% (LOL) Anyone remember the 12-15% interest rates during the miners strike of 1984/85 ?
5. ontheotherhand said...
"The company sold only 10,186 homes in 2009, 24pc lower than the previous year,"
If there is a shortage of supply imbalance as all the media claim causing rising prices, why don't the likes of Taylor Wimpey use the opportunity to sell off all their property sitting there? They are not in a chain and don't need another mortgage so there is no reason that they don't sell everything easily? The fact that they sold 24% fewer homes reveals the truth, only a trickly of 'greatest fools' are left.
6. inbreda said...
"only a trickly of 'greatest fools' are left."
whether a realist or conspiraloon, this would seem to suggest that the hefty falls of yesteryear are about to return. Which is most welcome, as I reckon I can only hold off the wifes nesting instinct for another 6 months max, and I was starting to get concerned!!
7. taffee said...
its a giant ponzi scheme imo....during the greatest apparent recession since the 1930's you have to be on a company directors salary to buy a 1 bed flat
everyone knows its unsustainable