Jump to content
House Price Crash Forum
Sign in to follow this  

Housebuilders Warn Of Down Turn

Recommended Posts

LONDON (Reuters) - Britain's housing market is set to weaken as higher interest rates hit buyer confidence, two homebuilders, Taylor Woodrow (TWOD.L) and George Wimpey (WMPY.L), said on Wednesday

The companies, due to complete a 2.5 billion pounds merger next week, also said U.S. housing markets remained challenging.

The cautious tone contrasts with a positive comment on Monday by Persimmon , Britain's largest housebuilder by market value, which said the market remained resilient and more interest rises would not be detrimental to the market.

"In the UK, we currently anticipate less buoyant market conditions in the second half of the year, due to the impact of recent interest rate changes and the effect of these on customer confidence," Woodrow said in a statement.

"In North America short-term market conditions remain difficult to predict. The focus of the business remains on managing costs and maintaining a steady sales rate."

Wimpey echoed Woodrow's cautious statement, and said first-half sales volume in its U.S. business would fell by 20 percent, while the total forward order book at week 25 was down by 41 percent, with significant reductions in margins and selling prices.

Wimpey said it remained confident of achieving operating margins for its UK business in excess of 14 percent for 2007.

The takeover of Wimpey by Woodrow, which will be completed on July 3, is the biggest to date in Britain's fast-consolidating building sector.

The combined Taylor Wimpey aims for at least 70 million pounds a year in cost savings from buying in bulk and also making job cuts, and the deal is expected to boost earnings for both sets of shareholders in the first year after completion.

Wouldn't it be great to see this in the UK

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 351 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?

      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.