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Taylor Bovis More Stable Market

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More news on the new build bust;

Taylor, Bovis Earnings Decline on Weaker U.K. Housing Market

Jan. 11 (Bloomberg) -- Taylor Woodrow Plc, Britain's biggest homebuilder by revenue, reported a fall in full-year profit and smaller rival Bovis Homes Group Plc missed analyst estimates as the pair struggled to find buyers after the end of a housing boom.

The average cost of a Taylor home fell 6.1 percent to 185,000 pounds ($326,000), while Bovis doubled output of lower- priced entry-level homes to help maintain sales in the U.K. housing industry's worst year in a decade.

``We appear now to be in a more stable market,'' Bovis Chief Executive Officer Malcolm Harris, 57, said in an interview. ``There's no reason to believe that's not going to persist.''

Indeed.

Bovis reports

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Fascinating...builder after builder, and smartnewhomes.com keep reporting substantial falls in average prices of new houses, yet the building societies keep reporting overall positive HPI. I guess company results are not "mix-adjusted" in that it appears they are building more at the cheap end to keep sales up, but I think smartnewhomes is like-for-like. Can anyone put a figure on what % of house purchases are new builds? Has there ever been another asset - apart from antiques! - where new product were falling in price whilst the used product was (allegedly) rising? :blink:

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My trouble and strife just emailed this clip from our local paper (Bidford is just outside Stratford-upon-Avon):

"Homes with L10,000 cashback. The desperation of housebuilders to get new homes off their books was highlighted this week with the three homes remaining for sale at Westbury's Victoria Place development at Bidford. Any one reserving a new home by the end of January will be given a cheque for 10,000 pounds. Two of the homes remaining are 3-storey, priced at 234,000 pounds and the third is a double fronted Forge home."

Personally, I think the HPC has already begun in earnest.

Edited by Realistbear

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My trouble and strife just emailed this clip from our local paper (Bidford is just outside Stratford-upon-Avon):

"Homes with L10,000 cashback. The desperation of housebuilders to get new homes off their books was highlighted this week with the three homes remaining for sale at Westbury's Victoria Place development at Bidford. Any one reserving a new home by the end of January will be given a cheque for 10,000 pounds. Two of the homes remaining are 3-storey, priced at 234,000 pounds and the third is a double fronted Forge home."

Personally, I think the HPC has already begun in earnest.

Another interesting point - are the ever increasing "cashback" deals offered by the builders reflected in their average selling price? Probably not...in which case the average price of a new build has fallen even further than they're saying :):)

Edited by Leodhasach

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Fascinating...builder after builder, and smartnewhomes.com keep reporting substantial falls in average prices of new houses, yet the building societies keep reporting overall positive HPI. I guess company results are not "mix-adjusted" in that it appears they are building more at the cheap end to keep sales up, but I think smartnewhomes is like-for-like. Can anyone put a figure on what % of house purchases are new builds? Has there ever been another asset - apart from antiques! - where new product were falling in price whilst the used product was (allegedly) rising? :blink:

approx 180,000 new homes are built ecah year. some will be self build and therfore not sold( perhaps10,000)

the toatal transctions average about 1million p.a.

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im giving £20k cashback on my car sale.

its a 02 ford focus. for sale. £26500.00 with 20k 'cashback'.

Well said! But......the builders are creating a perception of desparation which affects confidence. Discounts, albeit ficticious ones, give the appearnace that the market is wobbling.

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And some realism

http://today.reuters.co.uk/investing/finan...RS-WRAPUP-1.XML

UK builders spy signs of housing market upturn

LONDON, Jan 11 (Reuters) - British housebuilders are sounding a note of optimism for the battered UK market in 2006, saying demand picked up in the final quarter of 2005 after more than a year in the doldrums.

https://registration.ft.com/registration/ba...20abe49a01.html

Housebuilders see better year ahead

By Alex Barker

Published: January 11 2006 11:03 | Last updated: January 11 2006 11:03

Two of the UK's largest housebuilders added to optimism in the sector on Wednesday after they said sentiment in the housing market was improving after a tough 2005.

Taylor Woodrow said demand in the final quarter for its homes was stronger, while Bovis Homes reported a recent rise in sales reservations.

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Has anyone ever tried to work out just how much all these incentives are worth on the average newbuild?

It seems to me that £10,000 either cash back or vouchers is becoming more popular.

Add to that the curtains and carpets/5% deposit paid/pay your mortgage for a year/free legal fees/stamp duty etc etc....

What would be the value of the 'typical' incentive package?

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And some realism

http://today.reuters.co.uk/investing/finan...RS-WRAPUP-1.XML

UK builders spy signs of housing market upturn

LONDON, Jan 11 (Reuters) - British housebuilders are sounding a note of optimism for the battered UK market in 2006, saying demand picked up in the final quarter of 2005 after more than a year in the doldrums.

https://registration.ft.com/registration/ba...20abe49a01.html

Housebuilders see better year ahead

By Alex Barker

Published: January 11 2006 11:03 | Last updated: January 11 2006 11:03

Two of the UK's largest housebuilders added to optimism in the sector on Wednesday after they said sentiment in the housing market was improving after a tough 2005.

Taylor Woodrow said demand in the final quarter for its homes was stronger, while Bovis Homes reported a recent rise in sales reservations.

I prefer this quote:

"In the UK, it's too early to be completely bullish about 2006. We are very cautiously optimistic," Taylor Woodrow Plc (TWOD.L: Quote, Profile, Research) Chief Executive Iain Napier told a conference call on Wednesday, after the company said it expected 2005 profit to be in line with market expectations.

I think most people accept that the August rate cut gave the market a fillip...I don't think it will be sustained through to a proper "spring bounce". All recent figures on credit cards etc suggest to me that people are beginning to think they are too much in debt, fewer and fewer people are going to willing to take on huge multiple mortgages. A lot of BTL money will head for the Stock Market this year IMO...dinner party one-upmanship amongst the Daily Mail-ers on returns from the SM vs. BTL returns in the last year will see to that.

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And some realism

http://today.reuters.co.uk/investing/finan...RS-WRAPUP-1.XML

UK builders spy signs of housing market upturn

LONDON, Jan 11 (Reuters) - British housebuilders are sounding a note of optimism for the battered UK market in 2006, saying demand picked up in the final quarter of 2005 after more than a year in the doldrums.

https://registration.ft.com/registration/ba...20abe49a01.html

Housebuilders see better year ahead

By Alex Barker

Published: January 11 2006 11:03 | Last updated: January 11 2006 11:03

Two of the UK's largest housebuilders added to optimism in the sector on Wednesday after they said sentiment in the housing market was improving after a tough 2005.

Taylor Woodrow said demand in the final quarter for its homes was stronger, while Bovis Homes reported a recent rise in sales reservations.

Hmmm. Could you imagine them saying "this year is going to be terrible"?

"Very cautiously optimistic" is the most bearish thing they could get away with saying?

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Guest Bart of Darkness

im giving £20k cashback on my car sale.

its a 02 ford focus. for sale. £26500.00 with 20k 'cashback'.

I'll have two at that price.

Double the cashback.

At last I'm becoming a crafty consumer!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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