Wednesday, July 2, 2008
The decline is gainng momentum
Plummeting land values are piling the pressure on some of Britain's debt-burdened housebuilders just as new sources of capital shrivel up for companies such as Taylor Wimpey Plc. "Developers are dashing for cash. Every site is for sale," said Yolande Barnes, director of research at property services group Savills, highlighting a potential vicious circle of forced selling that could yet slash the value of company land banks. Historical precedents were not encouraging, property experts say. "The thing that falls the most in a downturn is the land," said Ian Marris, a partner in residential development at rival Knight Frank. Little respite for housebuilders and developers.