UK housebuilders Persimmon and Telford have both revealed impressive sales figures as Britain’s buoyant property market shows no sign of slowing.
York-based Persimmon – the UK’s largest developer by market capitalisation – says it has sold more than 5,000 properties under Help to Buy – the government equity loan scheme designed to get banks lending again.
Persimmon only builds properties outside London, but despite being out of the capital’s lucrative property market, the firm says weekly per-site private sales have increased by around 25 per cent in the first 15 weeks of the year.
Persimmon has sold 38 per cent more properties off-plan in 2014 compared to the same time last year. The average sale price for those 7,200 homes was a little more than £200,000; a 3 per cent year-on-year increase.
Aim-quoted Telford Homes focuses on inner London and has also benefitted from the resurgent property market. With an average sale price of around £400,000, Telford’s clientele comprise British-based owner-occupiers; UK-based and overseas-based investors – in roughly equal measure.
Telford’s pre-tax profits are expected to be double the £9m it made in 2013, with another doubling of profits expected by 2018.
The UK’s re-invigorated property market is benefitting all manner of related businesses, from housebuilders to lenders, from unoccupied property insurance providers to removal specialists.
According the Nationwide, London house prices have risen 18 per cent over the last 12 months, with steadier gains made in other parts of the UK. Fears of a housing bubble have so far yet to materialise.