Major Property Developer reveals losses
01 July 2009
The UK’s largest housebuilder by market value, Persimmon, has reported a fall in first half pre-tax profits to £9.8 million compared with a profit of £36.9 million a year ago.
The York-based housebuilder said selling prices have stabilised in most parts of mainland UK but added that it remains concerned about job prospects and the lack of mortgage availability - “particularly the scarcity of higher loan to value products“.
“However, the overall situation in respect of the mortgage market and valuations has recently shown signs of improvement,” said Persimmon.
According to the group, the average selling price of houses was about £155,524, compared with £181,485 during the same half-year period in 2008.
The news comes a day after Bovis Homes reported a pre-tax loss for the first half of 2009 of £8.6 million, compared with a profit of £9.5 million the same period a year ago.
The housebuilder said it was hit by tumbling house prices and a sharp write-down to the value of its land portfolio.
Bovis also said it was concerned that rising UK unemployment and a potential flood of properties on to the market were adding to the uncertainty and it expects “relatively low levels of activity” in the property market due to the ongoing lack of mortgage availability.
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