Housebuilders to report results
Aug 20 2012
Two of the nation's biggest housebuilders - Persimmon and Bovis Homes - are set to report strong half-year results as they benefit from building more family homes and capitalising on cheap land bought following the financial crisis.
The results will also reflect a strong spring selling season as first-time buyers rushed to take advantage of a stamp duty holiday before it expired in March.
And since then the Government has launched its NewBuy scheme to encourage the return of 95% mortgages, while more recently it launched its Funding for Lending scheme to incentivise banks to boost mortgage availability.
Persimmon is expected to report a 30% hike in pre-tax profits to £75.3 million on Tuesday as it benefits from these trends. The York-based builder, whose brands include Charles Church and Westbury, has already hailed signs the Government's NewBuy scheme is helping to stimulate demand in its last update.
Investec analyst Mike Bessell said: "Persimmon remains the national housebuilding business that is furthest down the road to full recovery and its strategy underpins confidence in that view."
Bovis Homes, reporting on Monday, is expected to reveal that pre-tax profits nearly doubled to £15.2 million in the first half of 2012, up from £8.1 million the previous year, according to Numis analyst Chris Millington.
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