Wednesday, Nov 04, 2009

Does what it says on the tin, I suppose

Times: Taylor Wimpey ready to raise house prices

Taylor Wimpey, the housebuilder, said market conditions had improved so much that it had already sold all of its stock of homes for 2009 and was looking forward to raising prices on houses to be sold next year. The upbeat statement mirrored rival, Redrow, which said that it expected its average prices to start increasing soon. Yesterday, Halifax said that house prices rose by 1.2 per cent in October to an average £165,528. Taylor Wimpey said: "Our sales focus remains on achieving price increases as we build our 2010 order book." The company's selling price for private homes rose 9 per cent from the £163,000 price achieved in the first half, helped by deliberately raising the proportion of houses to flats it sells as well as price inflation.

Posted by mark wadsworth @ 04:44 PM (1922 views)
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16 Comments

1. tyrellcorporation said...

LOL, Imagine Vauxhall announcing in a upbeat press release that everyone can look forward to more expensive cars in 2010!

The comedy of the UK housing market.

Wednesday, November 4, 2009 05:24PM Report Comment
 

2. timmy t said...

"The company's selling price for private homes rose 9 per cent from the £163,000 price achieved in the first half, helped by deliberately raising the proportion of houses to flats it sells as well as price inflation."
Doesn't sound very mix-adjusted does it?

Wednesday, November 4, 2009 05:24PM Report Comment
 

3. will said...

Wouldn't be anything to do with trying to cover their losses would it?

Wednesday, November 4, 2009 05:40PM Report Comment
 

4. jack c said...

The builder added: "With affordability at extremely good levels there is the potential for significant price rises once economic conditions fully stabilise." - for me this is one of the most comical comments in relation to UK residential housing of 2009 - they are devoid of reality as affordability in my experience is stretched on every measure.

The comments section is well worth a read - no fooling Christopher Eades & Co

Wednesday, November 4, 2009 05:57PM Report Comment
 

5. cyril said...

This 'news' is probably aimed at more at potential shareholders not house-buyers. The shares are currently trading at about 40 pence, down from nearly a fiver in 2007.

Wednesday, November 4, 2009 06:36PM Report Comment
 

6. paul said...

I'm going to raise the price of my bicycle from three hundred quid to over a million pounds, then I'll get a loan secured against my bike of a million pounds, right?

(anyone see the flaw in that plan?)

Wednesday, November 4, 2009 06:56PM Report Comment
 

7. Hardcheese said...

Is this a push to increase the number of sales prior to the year end? and with the end of the stamp duty as we know it?

Its all pants, the end is nigh!

Wednesday, November 4, 2009 07:47PM Report Comment
 

8. ontheotherhand said...

'Run out of 2009 stock' is like those new blocks of flats that have a big sign saying "90% of phase 1 sold" when phase 1 is invented to be 10 flats out of 120.

Wednesday, November 4, 2009 08:05PM Report Comment
 

9. jack c said...

cyril said...This 'news' is probably aimed at more at potential shareholders not house-buyers. The shares are currently trading at about 40 pence, down from nearly a fiver in 2007. Wednesday, November 4, 2009 06:36PM

Citywire are covering this very aspect - House builder shares attractive even given housing outlook By Deborah Hyde | 11:00:25 | 04 November 2009

"Some analysts suggest the market has been overly cautious about prospects for the house builders and say shares have become attractive again. Alistair Stewart at Investec points out that Taylor Wimpey's trading statement today refers to the UK housing market being 'significantly better than in same period in 2008'. And there seems to be a solid appetite from investors for the sector as Redrow said there had been a 97% take-up for its rights issue and Barratt reported a less-bad-than-anticipated 92% take-up of its rights. In both cases, those shares that were not taken up were sold to institutions this morning"

'Taylor Wimpey is seeing a small level of house price inflation. In our view this confirms that activity in the housing sector remains robust and this supports current asset values and rising margins,' said Millington.

Full 3 page article @ www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=366001&Page=2

Wednesday, November 4, 2009 08:13PM Report Comment
 

10. jack c said...

Continuing on same aspect as above

It said total reservations climbed 47% also ahead of expectations. It did though say mortgage availability - while improving - remains a 'problem for the industry' and said surveyors' valuations remain a sticking point. 'Down valuations by surveyors in respect of new mortgage applications remain an ongoing issue and is the principal cause of cancellations,' it said.

And there was some upbeat news from online group Rightmove which said the last four months continued to see healthy growth in revenue and earnings. 'Usage of the Rightmove website has been at record levels, with August representing our busiest month ever with page impressions up over 40% on August 2008.' it said. The number of advertisers is up 5% from the low point in February 2009, it said.

Full 3 page article @ www.citywire.co.uk/personal/-/news/markets-companies-and-funds/content.aspx?ID=365988

Wednesday, November 4, 2009 08:23PM Report Comment
 

11. shining wit said...

Hilarious. The banks are shedding staff like politicians shed dandruff. The taxpayer spends another £33billion propping up the banks (bailout number 3 and counting). Interest rates at the ridiculously low and unsustainable levels. Northern Rock "Going well" despite record repossessions. £175billion borrowed just to balance this years books. QE at, damn is it £75billion or £125billion, I can't remember. House sales (by volume) would be at their lowest level for 30 years if the last 1 1/2 years hadn't been even worse. Unemployement at nearly 2.5 million and rising and shows no sign of lowering for at least another year or two.

"out of 2009 stock" my derrier! I moved into my present (rented) house in December 2007. Around the corner a new development (built on allotments in the center of town!) was nearing completetion and finished by September 2008. Every time I drive home I see the house size hoarding with it's lated "special offer" - "Part exchange welcome", "£15,000 off", "15% off", "Part buy scheme available". Now it's November 2009 and still only half of the things are occupied and they have now started renting them out !

I also now of 2 large developments , one in the same town, that are struggling to find anyone to buy there "first phase" and both the builds have now completely stopped (one since june 2008).

We are going to now have a slip-slide economy where the whole housing market is going to experience the steady and demoralising effects of a slowly reducing level of house prices.

Put me down for two, Taylor Wimpey!

Wednesday, November 4, 2009 08:25PM Report Comment
 

12. cynicalsoothsayer said...

There's whole blocks of flats near here only half completed, one doesn't have anything on the roof trusses which are going white with the weather. Been like that for at least a year.

There's also a development of houses, only one of which is occupied, all the others have forlorn for sale signs.

Wednesday, November 4, 2009 10:16PM Report Comment
 

13. clockslinger said...

Say what you like, when these jokers can hike prices for the shit they build there is a recovery of some sort clearly going on.

Wednesday, November 4, 2009 10:33PM Report Comment
 

14. shining wit said...

"Say what you like, when these jokers can hike prices for the shit they build there is a recovery of some sort clearly going on."

Clearly - Only trouble it's the sort of "recovery" that uses the same party tricks as Derren Brown's marvelous "lottery guessing" trick, using the "wisdom of crowds" beaulocks!

Like almost all this monstrous shambles of a government do, err... wars for instance, it is an unmitigated disastor, or one about to happen. The economy is based on 2 things:

1. Credit
2. Government spending

When interest rates go up and when we all have to start paying for the hundreds of billions of pounds worth of bank and home-owner support, our continual spiraling costs because we are outside the eurozone (where most of our imports come from) then we are all going to be fawked.

Doomed if the tories get in and double doomed if this purile and coniving bunch get back in.

Recovery my hearse. There's more life on Paul Daniel's scalp!

Wednesday, November 4, 2009 10:54PM Report Comment
 

15. crunchy said...

Now you are spoiling me. : )

The sweet smell of victory. Love it!

Did I speak out of place, lol

Wednesday, November 4, 2009 10:56PM Report Comment
 

16. shining wit said...

You haven't commented on this article? What are you talking about Crunchy? Have you been on the sherbet?

Thursday, November 5, 2009 01:08AM Report Comment
 

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