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Another day another positive note for the UK property sector

Yesterday's news from Bovis Homes was well received by the UK stock market amid signs that the UK housing sector is starting to stabilise. However, while many analysts were upbeat about the sector as a whole there were a number who were cautious about calling the bottom although after the results from Persimmon, one of the more prominent UK housebuilders, perhaps everybody will feel a little more comfortable that sector has bottomed out?

While pre-tax profits of £9.8 million in the first half of the year do not compare favourably against last year's figure of £36.9 million it was a surprise write back of recent write-offs which caught the market by surprise. During 2008 the company reduced the value of its land on the balance sheet by a staggering £650 million and a further £121.4 million earlier this year. However, today the company "wrote back" a whopping £149.3 million believing that the market has bottomed and land has held its value better than many people had expected.

Persimmon was actually the first of the main UK housebuilders to suggest that the sector had bottomed out although at the time many people were cautious regarding this statement and unwilling to "bet their house" on the forecast.

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