Is the house building sector back in favour?
News that Hugh Osmond, one of the UK's best-known businessmen, has made a takeover offer for UK housebuilder Crest Nicholson has certainly caught the attention of investors in the UK. It is believed on offer in the region of £300 million to £350 million was tabled last week and a response is awaited from the company. There have been rumours for some time that Hugh Osmond has been looking at various companies in the UK and was ready to make a move.
Crest Nicholson is one of the fallen angels of the house building sector having been forced to issue shares to Lloyds Bank last year in order to avoid going out of business. The debt for equity swap has effectively meant the company has been for sale for some time and today's news that an offer has been made is no real surprise. However, it does prompt the question whether the UK house building sector has fallen far enough and whether there will be more takeover offers in due course.
Crest Nicholson had been one of the leading darlings of the UK house building market but when the UK property sector deflated and buyers deserted the UK market it was left high and dry.
Share this..
Related stories
Why did investors chase property prices to ridiculous heights?
If you look back at the summer of 2007, commonly referred to as the peak in the UK property market, it shows a market which was flying high with not a cloud in the sky. Despite the fact that many experts believe that property prices in the UK were substantially overvalued, the headlines talked of a boom in the sector and investors and homeowners were desperate for a slice of the action. So why did...
Read MoreHow low can the income/house price ratio fall?
It has been revealed that there has been significant fall in the house price to average earnings ratio over the last 18 months. The figure hit a peak of 5.84 times earnings in July 2007 which coincided with the top of the UK housing market and the level has since fallen back to 4.44 in December 2008. But how low can the ratio fall and what impact will this have on UK house prices?
W...
Is The Buy-To-Let Market In Trouble?
Over the last few years we have seen the creation of a number of buy-to-let empires by private individuals who have taken advantage of the increase in house prices and the expanding rental market in the UK. However, with rental income used to fund the growth of many of these empires there are concerns that some investors may see their portfolios collapse like a pack of cards.
Probl...
Children's damage knocks thousands off house price
As many as one in ten parents claim that damage caused by their children has reduced the value of their home by an average £2,000.A survey conducted by Direct Line found that six out of ten parents with children under five said their little darlings had somehow damaged their home, with spilt food and stains on carpets being a concern for 78 per cent of parents.Some 76 per cent said their children...
Read MoreLondon on top of the world
Property prices for luxury homes in London exceed those of all other cities in the world, according to estate agent Knight Frank, with the price per square foot of prime properties in the capital averaging out at £2,300.Properties in Belgravia and Knightsbridge cost the most, with an average £3,000 asking price per square foot.Such figures mean that the cost of London's properties exceed those o...
Read More