Duplex Posted January 11, 2006 Share Posted January 11, 2006 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 Quote Link to comment Share on other sites More sharing options...
Leodhasach Posted January 11, 2006 Share Posted January 11, 2006 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? Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 11, 2006 Share Posted January 11, 2006 (edited) 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 January 11, 2006 by Realistbear Quote Link to comment Share on other sites More sharing options...
Leodhasach Posted January 11, 2006 Share Posted January 11, 2006 (edited) 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 January 11, 2006 by Leodhasach Quote Link to comment Share on other sites More sharing options...
the don Posted January 11, 2006 Share Posted January 11, 2006 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? 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. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted January 11, 2006 Share Posted January 11, 2006 im giving £20k cashback on my car sale. its a 02 ford focus. for sale. £26500.00 with 20k 'cashback'. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 11, 2006 Share Posted January 11, 2006 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. Quote Link to comment Share on other sites More sharing options...
kingofnowhere Posted January 11, 2006 Share Posted January 11, 2006 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. Quote Link to comment Share on other sites More sharing options...
2005 Posted January 11, 2006 Share Posted January 11, 2006 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? Quote Link to comment Share on other sites More sharing options...
Leodhasach Posted January 11, 2006 Share Posted January 11, 2006 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. Quote Link to comment Share on other sites More sharing options...
El_Pirata Posted January 11, 2006 Share Posted January 11, 2006 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? Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted January 11, 2006 Share Posted January 11, 2006 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! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.