It is time to look at the UK housebuilding sector again?
Amid signs that UK house prices are starting to move higher, according to the recent Nationwide Building Society report, we have seen a rise in UK housebuilder share prices. This is a significant move from the recent trend where concerns regarding debt, business levels and the immediate future saw many investors run for the hills. So is it too early to look at the housebuilding sector or has it turned the corner?
While the apparent increase in property prices last month has been well received by many in the market, there is concern regarding different trends reported in different surveys. This is a particular scenario we saw earlier this year when the Halifax and the Nationwide surveys seemed to indicate very different price movements in the same month. However, even if UK house prices have started to move up it is worth remembering that many of the U.K.'s leading housebuilders are significantly in debt at this moment in time. A mixture of mergers, takeovers and expansion, all at the top of the market, are still causing problems in the sector.
Confidence is the main factor which is needed to increase interest in the UK property market although at this moment in time confidence is fragile at best. What happens over the next few months will be vital to the UK housebuilding sector and homeowners alike.
Share this..
Related stories
Business and Enterprise Minister thinks outside of the box
Mark Prisk, the UK government's business and enterprise Minister, has today introduced a very interesting topic into the small business arena. As the liquidity crisis continues in the UK financial arena he believes that some small businesses should be looking to swap equity for additional funding in the short to medium term. While this is commonplace in the property sector it is not something that...
Read MoreSir Philip Hampton takes over at Royal Bank of Scotland
Sir Philip Hampton has been installed as the new chairman of the Royal Bank of Scotland or as many would see it, an enforcer for the government, which has taken a significant stake in the business. This is the latest in a long line of employment positions which Sir Philip has taken over the last few months including the chairmanship of Sainsbury.
The government is very keen to use i...
Next drops a bombshell on the UK retail sector
While the UK retail sector is at the moment basking in glory with signs of an upturn, the retail giant Next has somewhat spoiled the party with an indication that the improvement in retail sales in the first six months of this year may not follow through into the latter part of 2009. The company expects sales to drop by between 3.5% and 6.5% in the second half of 2009 which has caught the market s...
Read MoreWill the return of stamp duty kill the housing market?
The stamp duty holiday for the UK housing market is set to end on 31 December and there are concerns that early 2010 could see a slump in demand and a slump in prices across the UK. There is no doubt, as with the UK car scrappage scheme, there has been significant manufactured demand in the UK housing market primarily because of the extended stamp duty holiday. But is the UK property market able t...
Read MoreCouncil of Mortgage lenders reduces repossession forecast
The Council of Mortgage Lenders (CML) has this evening issued a statement suggesting that UK repossessions in 2009 could be significantly lower than originally forecast. The CML had forecast around 75,000 repossessions in the whole of 2009 although this figure has now been reduced to 65,000, still a significant increase on the 40,000 repossessions last year. It is also worth remembering that the 6...
Read More