Housebuilders return to profit
Shares in Britain’s housebuilders are back in demand as all the listed housebuilding companies are in profit once more. Taylor Wimpey nearly went out of business just three years ago but, last week, announced its first dividend since 2007. Persimmon and Bovis Homes are also in profit and have expressed optimism about their future security, albeit based on a significantly lower level of activity than in the heady days before the financial crisis struck.
It seems the housebuilders have adapted their business models to reflect the slowness of the current property market and are building more family houses rather than cramming land with blocks of apartments. However, this doesn’t help first-time home-buyers: according to the Federation of Master Buiders, by 2015, demand for housing will outstrip supply by over half a million homes.