Page 1


I S SU E 9

December 2009 update

House prices rise in November but recovery may not last The latest report from housing intelligence group Hometrack showed the average cost of a home in England and Wales increased by 0.2% to £156,700, driven by rising demand. But the body said the rate at which new buyers were coming to market was beginning to falter and a drop off in demand was likely to extend beyond the normal pre-Christmas glitch. The Homes and Communities Agency has approved a further 45 schemes for funding through the first round of its Kickstart programme. The body today confirmed that it would invest £153 million on 3,688 homes under the projects – in addition to the £207m allocated for 91 schemes in October. This means Round 1 of Kickstart will see a total of £360m of funding for 136 schemes, leading to 10,281 new homes. Galliford Try has acquired Cornwall-based housebuilder Rosemullion Property Company, and its subsidiaries trading as Rosemullion Homes. Bellway has forecasted a 10 per cent rise in half year sales after reporting a 51 per cent rise in reservations for new homes over the last four months. Three Bellway bosses have taken home a total of £240,099 in bonuses in 2009 despite a shareholder revolt over their awards last year. The payment of bonuses is a break with what has happened at Persimmon, Barratt and Redrow during the recession, none of which paid its top bosses performance bonuses last year. Announcing its half-year results, Berkeley Homes said it had bought 12 sites covering 1,800 plots in the six months to the end of October, having not bought anything in the previous financial year. Profit Soars At Electrolux! Cost reductions, favorable exchange rates, lower raw material costs and stable pricing helped Electrolux ratchet up third-quarter earnings 93%. Beko has unveiled four new washing machines, each with a 50 minute quick programme cycle and claiming low energy use as well as a range of new ovens and hobs with ovens starting from £169.99. BSH Continue To Expand Chinese Base. four companies in China now and around 6,500 employees.

What do the housebuilders think will affect their businesses in 2010? • • • • •

Constrained mortgage supply as the banks have to meet their own loan requirements so are unlikely to loosen the purse strings. A rise in unemployment. An expected build rate way below the levels of 2006 and 2007. A General Election and the uncertainty that this always brings to the market. A clampdown on public expenditure that could bring an end to Kickstart and HomeBuy Direct and long term restraint on growth.

Opinion is split on the housing market in 2010, according to Housebuilder magazine



Statistics NHBC's October figures show the number of registrations to build new homes has reached 9,163 - the highest level since July 2008. NHBC statistics for the three months to the end of October 2009 also show:

Mothly Snapshot September 2009

• DBD Market share •


Recovery in the private sector continues. Private sector applications were up 45 per cent across the UK to 16,630 from 11,507 for the same period last year. Public sector figures for the three months to the end of October were also up, at 8,266 - 3 per cent higher than the same period a year ago (8,041). The average number of daily sales of new homes in the UK recorded by NHBC during August to October 2009 was 345 - just 8 per cent lower than the same period a year ago (375)

UK New-build sales, registrations and completions Average daily sales Private registrations Private completions Housing association registrations Housing association completions

Oct 08 375 3,454 8,797 2,439 3,634

Oct 09 348 6,357 6,828 2,812 3,265

-7.20% +84.05% -22.38% +15.29% -10.15%

DBD England and Wales Snapshot Plot Completions UK DBD plots completion DBD market share Newbuild starts

Oct 08 12,540 965 8.73% 5,893

Oct 09 10,221 1,758 19.73% 9,613

-18.49% +82.18% +126.00% +63.13%

DBD Market Share England & Wales 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

DBD Market Share Rolling 12 month ave 15.00% 10.00% 5.00% 0.00%

Appliances to date fiscal year 80000 60000 40000 20000 0 2005/6





DBD News December 2009  
DBD News December 2009  

DBD Construction News