A shot in the arm for the mortgage market from the Bank of England’s Funding for Lending scheme and Government initiatives left two of Britain’s biggest housebuilders on bullish form today.
Persimmon, whose Charles Church family homes are in strongest demand, has pushed forward sales for 2013 past the £1 billion mark for the first time since the pre-credit crunch days of 2007.
Visitors to its sites are already 4% ahead of last year, despite the snow, and cancellations are at historically low levels.
Outgoing chief executive Mike Farley said the FLS is pushing down lending rates while the FirstBuy schemes to help first-time buyers with deposits and NewBuy initiative to boost 95% mortgage loans help unlock the lending market. Pre-tax profits were 52% ahead at £225.1 million last year.
Farley said: “The FLS has made some impact. We have seen lower rates since Christmas so that helps people with affordability. Lenders are looking to lend a bit more as well — they are open for business. We’re seeing broad-based improvement.”
Smaller rival Bovis unveiled an impressive 69% jump in profits to £54.1 million for 2012 as chief executive David Ritchie said it had seen an “encouraging start to the spring selling season”.
