Building industry 'far from recovery'
The chief executive of the house builder Persimmon has warned that the UK housing industry is still far from a full recovery – despite his company posting encouraging sales figures for the first part of 2011.
After a torrid end to 2010, caused by the uncertainty ahead the Government's spending cuts and the bad weather during November and December, Persimmon has rallied in the new year, with the value of its new sales reservations up 12 per cent on the same period last year.
However, with the total value of their order book standing only at the same level as in April 2010, the chief executive, Mike Farley, warned that the market still has a long way to go to recover fully.
"It is a modest recovery that you have to put in context," he said. "In the first three and a half months of this year we have only been able to take our order book back on par to where it was last year. The economic backdrop is challenging. It's been very tough since the credit crunch because of a lack of mortgage availability. In that period we saw availability drop from 120,000 to 30,000 [a month]. We're back up to 53,000 but there is still a lack of finance and we're a long way off 2007 levels."
Strewth mate. Aussies wave goodbye to Britain as it becomes too pricey to stay
World news in pictures
X marks the spot: The find that could rewrite Australian history
At least 91 feared dead including 20 children as massive tornado rips through Oklahoma
David Cameron offers review of civil partnerships and seeks to smooth relations with angry activists as gay marriage Bill clears major hurdle
- 1 Austerity has hardened the nation's heart
- 2 Tottenham to smash pay scale with £150,000-a-week contract in attempt to tie Gareth Bale to club
- 3 Strewth mate. Aussies wave goodbye to Britain as it becomes too pricey to stay
- 5 Join Ryanair! See the world! But we'll only pay you for nine months a year
BMF is the UK’s biggest and best loved outdoor fitness classes
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£500 per day: Orgtel: A top tier banking client urgently requires Finance Busi...
£425 - £550 per day: Orgtel: Senior Finance Project Manager - £550 - Bristol -...
£150 - £250 per day: Orgtel: KYC Analyst - London - Banking - £150-250/day C...
£500 per day: Orgtel: A top tier banking client urgently requires Finance Gove...