How to solve the UKs housing crisis
Simon Creasey explores the alternative solutions rivalling traditional housing models to meet the needs of a growing UK population
It's an interesting time for housebuilders in the UK. Following a tumultuous 2018, during which the share price of listed housebuilders fell by a whopping 27%, the sector bounced back in the first quarter of 2019. Share prices soared 18% - more than double the 8.2% enjoyed by the FTSE 100 as a whole - according to data from consultancy Building Value.
Taylor Wimpey has reported a 5.5% rise in full year pre-tax profit so far in 2019. Persimmon revealed profits had punched through the £1bn mark for the first time in the company's history. Bellway posted an 8.7% rise in pre-tax profit and Countryside said new home completions were up 43% in the six-month period to the end of 31 March, compared with the same period last year.
This uptick in financial performance has been boosted by the government's help to buy scheme, growing demand for affordable housing and the continued record low interest rates. But not everything is as rosy as it seems.
This is an extract from the Business & Management Magazine, Issue 275, June 2019.
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