New Build 'Confident' Market
More good news in the new build housing market with some great figures released by one of the UKs largest house builders Persimmon. Annual profits have risen by nearly a quarter, and it has described the market as very “confident”.
The company sold 15,171 new homes last year, 599 more than in 2015, with average prices rising by 3.8% to £206,765. It also added that 2017 has got off to a promising start, with encouraging activity by potential home buyers.
Persimmon stated that "The UK new build housing market remains confident with customer demand for new homes supported by compelling mortgage products." However, it added that it remained "wary of the risks and increased uncertainties associated with the EU referendum result".
Interestingly Government policy in the name of the ‘Help to Buy Scheme’ remained a vital component of their sales with 6,970 (or nearly 46%) coming from first time buyers through this scheme.
Laith Khalaf, a senior analyst at Hargreaves Lansdown, said “The UK's house builders have had the wind at their back for some time now, with the government Help to Buy scheme boosting transaction numbers, while a chronic housing shortage has pushed prices up too.
"Looking forward, the UK housing market shows little sign of pausing for breath in its steady upward climb, and low interest rates are likely to remain supportive for the foreseeable future."
Stuart Fairlie, Head of Technical at Elmhurst stated: “These results from one of the largest volume house builders confirms that the new build market is in a very healthy state, a figure backed up with an upturn in new build EPCs being lodged on the central Government registers. This is good news for OCDEAs who are hopefully winning new business and creating more EPCs for their existing clients. At a time that Elmhurst have significantly invested in our Design SAP and Plan Assessor software we remain positive on this vital market sector”.
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