‘Severe’ downturn now less likely - Economy - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

‘Severe’ downturn now less likely

‘Severe’ downturn now less likely

Category: Economy

Updated: 19/06/2009
First Published: 19/06/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The UK's largest house builder and general construction business has said that the severe downturn scenarios which it had been planned for are now less likely to materialise.

At its annual general meeting, Taylor Wimpey said it was in a position to take advantage of increased stability in the UK housing market.

"Despite some regional variations, we have seen continued stability in the UK housing market since we reported our full year results on 30 April," it said.

"Whilst mortgage valuations and availability are still issues, there are signs that the situation is beginning to improve. We do, however, expect to see the normal seasonal slowdown over the summer months."

The business' order book has increased by 73 per cent since the end of 2008, with its order book currently standing at £971 million. House prices were now broadly flat, it said, and there is an expectation that the average selling prices will increase in the second half of the year.

However, the company warned that it would continue to adopt a guarded approach. "We have been encouraged by the ongoing stability in the UK housing market, but we remain cautious with regard to the prospects of the wider economy and in particular, the potential impact of rising unemployment," it said.

"We will retain our focus particularly on cost reduction until the profile of any recovery become clearer."

The firm's announcement comes just weeks after figures from Halifax and Nationwide showed a rise in house prices in May, while both buyers and estate agents have reported increasing enthusiasm in June.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Inflation and you: what does the latest rise mean?

Today saw not only the outlining of the Government’s stance on leaving the EU, but also a rise in inflation that was larger than predicted. But what does this mean for the pound in your pocket?

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.