Housing boom makes builders buoyant
Builders - 10/07/2006 11:13:56
Construction firms are expressing confidence about the state of the nation's housing sector, with one leading company cutting prices on its new-build properties in a bid to woo a competitive market.
Releasing its annual trading statement, Redrow said the figures over the last 12 months fell broadly in line with their upbeat forecast in 2005, with the sales market now "performing more strongly than at the same point a year ago".
The company added that "transactions have been at higher levels" in 2006 so far, with an eight per cent rise in completed sales strengthening its ability to deliver a target of 2,000 new homes every year up until the end of the decade.
With a view to this challenge, Redrow has increased its current land bank by over 20 per cent in the last year, with planning applications for over 6,500 plots on ten major sites anticipated over the next 18 months.
However, the statement added that despite a surge in consumer confidence, building firms had not been in a position to raise prices for new properties, with the average selling price falling to around £161,000 from £172,400 a year ago.
The company concluded: "We expect to see some modest house price inflation over the next twelve months which we anticipate will be sufficient to mitigate the impact of build cost increases."
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