London property developers post profits amidst rising house sales

Written on:October 22, 2012
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House sales increase boost property developers’ profits

Home sales in England and Wales rose 2.2% in the first half of this year to 282,086 with Felixstowe, the Suffolk port town emerging as the most preferred property areas and Salford, gaining the least preferred status, according to the Lloyds TSB report. With the house sales on an upswing, London property developer Telford Homes saw a significant rise in first half profit, as demand for London property remains strong.

Yorkshire and the Humber area had the highest proportion of hotspots with almost 80% of all towns surveyed in the region recording an increase in sales. The south west was in second place with 77% followed by the south east with 71%. The lowest proportion was in the north of England were only 28% of towns recorded a rise in sales.

Suren Thiru, Lloyds TSB housing economist, said the encouraging increase in the number of towns showing a rise in home sales highlighted the mixed state of the housing market at local level compared with the subdued picture at national level.

Meanwhile, Telford Homes, the east London house builder, reported that it has completed 85% sales of the open market homes expected to legally complete in the year to March 31, 2013 and over 50% sold for the year to March 31, 2014.

Thiru said, “Many of the top performing towns are in areas where improved levels of affordability over recent years have helped support demand for those able to enter the housing market.”

The increase in house sales has been boosted by improvements in affordability, with house prices in the 10 biggest property sales hotspots falling by 7% over the past four years. Around 324, or 65%, of the 500 towns tracked saw an increase in home sales in the first half of this year compared with the first six months of 2011. This is more than double the 151 towns which saw an increase in sales in the first half of 2011.

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3 Comments add one

  1. Simon says:

    I’ve seen all manner of desperate spin over the past few years, and nothing leads me to believe the Lloyds headline is anything else. I’ve seen a number of other sources over the past year which suggest sales are dropping steadily, and recently plummeted further. The housing market is at breaking point still and hasn’t recovered in years – the smallest of policy changes, rate increases etc are likely to push it over the edge.

    I assume the 7% excludes rate of inflation changes, so what are we talking in real terms? 18% down, and another 20% to go?

    In the meantime, the land registry appears to contradict the Lloyds report. Their share may increase but overall….

  2. Lindsay says:

    It is difficult to digest such stories…Obviously, the companies in the property market put some spin on such stories…. but I have been told that sales are decreasing steadily….

  3. Selena says:

    This is great news for those people in the property development market…they are going to be laughing all the way to the bank…

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