Demand for new build homes is holding steady amid help from various government schemes, three of the UK’s largest housebuilders said today.
Redrow and Taylor Wimpey told the City that access to mortgage finance was still restricted, but initiatives such as NewBuy – which underwrites 95 per cent mortgages with participating lenders in England – had helped confidence.
Bovis Homes added that prices in the housing market were broadly stable, with prices generally stronger in the south of England.
As well as NewBuy, Redrow founder and chairman Steve Morgan pointed to the impact of the FirstBuy scheme, which helps low income buyers south of the Border with an equity loan.
He added: “Without a doubt industry numbers would be considerably lower without this intervention.”
In an update covering the first 19 weeks of its financial year, Redrow said it continued to make “steady progress”, with sales per outlet up slightly on a year earlier.
The average price of reservations was 13 per cent ahead of last year at £223,000, reflecting the strength of the London property market and increased sales of Redrow’s New Heritage Collection.
Taylor Wimpey reported 467 reservations under NewBuy and its Scottish equivalent since the scheme’s launch in March, legally completing on 137 and exchanging on 132 homes. It has also completed a total of 1,179 homes under the FirstBuy scheme.
The builder added that it hoped to see further improvements in mortgage lending over the coming months as the UK government’s Funding for Lending scheme gained more traction.
Shore Capital analyst Jon Bell said this morning’s trio of trading updates were all broadly in line with the broker’s expectations.
Shares in Bovis rose around 1.8 per cent in early trading, while Taylor Wimpey was up almost 1 per cent, but Redrow was down 1.5 per cent.
