In order to assess the basic economic conditions within the housing sector, it has been said that consideration should be given to the economic position of the major mass production new house builders in the UK.<\/p>\n
These results are somewhat settled and in a better state than the last couple of years reflecting the more stable economic conditions within the sector as a whole.\u00c2\u00a0 Levels are still low compared to four years ago, but the sector is not in a static state or in a depressed state.\u00c2\u00a0 Things could be more appropriately defined as cautiously or quietly optimistic or positive rather than buoyant.<\/p>\n
Figures for the year are not formally announced until March or April however a forecast is usually made in January to the City which is usually indicative of the prospects of the main players in the market.<\/p>\n
Snapshot results for some of the main operators are as follows:<\/p>\n
Persimmon Homes<\/strong><\/p>\n 10% increase in turnover to \u00c2\u00a31.57 billion.<\/p>\n Pre tax profits to be at the higher range of expectations (from \u00c2\u00a375 million to \u00c2\u00a396 million)<\/p>\n Increase in sales from 8,976 (2009)\u00c2\u00a0 to 9,384 legal completions.<\/p>\n Net debt down from \u00c2\u00a3267.5 million to \u00c2\u00a351 million.<\/p>\n Holds 59,000 plots in the land bank.<\/p>\n Average selling price of \u00c2\u00a3167,000<\/p>\n Taylor Wimpey<\/strong><\/p>\n Completed 9,962 homes in 2010 compared to 10,186 in 2009.<\/p>\n TW have looked to prioritise profit, efficiency and margins over volume.<\/p>\n Operating profit expected to be 7% up from 0.8% in 2009.<\/p>\n Having reduced build cost by 10% in the first half a year, in addition to further savings in the last half a year have resulted in much healthier margins.<\/p>\n Outlook is cautious with the volume of mortgage lending and the wider economy but is continuing to increase margins and is enhanced by prices, sales rates and margins at sites coming on stream this year.<\/p>\n Bovis<\/strong><\/p>\n Build cost savings have also helped Bovis in addition to improved sales prices during the year to December 31st<\/sup>, resulting in increasing its gross margins.<\/p>\n Pretax profits are expected to be above \u00c2\u00a316.3 million expectations.<\/p>\n It has added around 3,700 plots to its land bank, mainly in the South of England (80%) where demand is most consistent at a cost of \u00c2\u00a3203 million.<\/p>\n Bovis stated that it will pay a dividend in 2011.\u00c2\u00a0 The group continues to expect subdued activity compared to historic levels but pointed out that the long term imbalance between supply and demand remained a positive factor.<\/p>\n Galliford Try<\/strong><\/p>\n Galliford Try\u00e2\u20ac\u2122s Housing completions rose from 663 units to 851 units over the same period in 2009.<\/p>\n Its average selling price on private homes rose by 4% from \u00c2\u00a3197,000 to \u00c2\u00a3204,000.<\/p>\n Total reserved housing sales increased 11% to \u00c2\u00a3359 from \u00c2\u00a3324 million.<\/p>\n It commented that despite the economic uncertainty, it was encouraged by the performance of its housebuilding business and was confident in its strategy to deliver its expansion plan.<\/p>\n