Big Jumps in Profits for House Builders as Residential Investment Continues to Grow
House builders across the UK have seen a rise in their operational margins for the second half of 2011 as residential investment property delivered a return of 11.3% last year according to statistics published today by the Annual Residential Property Index.
One of UK’s largest home builders, Taylor Wimpey, has doubled its operating margins from 6.4% in 2010 to 10.1% for the last quarter of 2011 as the house market continued to improve.
Taylor Wimpey’s operating profit jumped to £159.5 million for the last year, representing an increase of 81% compared to operational profit of £88.3 million for 2010.
Growth in the housing market is considered to be a result of the continual government investment aiming to build more new homes all over the UK. It has recently invested £250 million in affordable housing schemes and made proposals to sell off public land to encourage house-building projects.
Chief executive at Taylor Wimpey, Pete Redfern, said that company’s performance is a result of a continual focus, significant improvement in margins and return on capital.
Mr Wimpey said: “While wider economic conditions remain uncertain, the UK has seen a period of continued stability in the underlying housing market and strong growth across a number of areas as shown by our order book. We feel well-positioned to deliver further improvement through our value-driven strategy.”
Are you optimistic about future growth in the housing market and what it would mean for you? Share your thoughts by leaving a comment below:
Posted on February 29, 2012, in construction jobs, construction news, Housing Scheme, Infrastructure, t4ts, train4tradeskills and tagged Affordable housing, Annual Residential Property Index, Employment, George Wimpey, Government, house building, housing scheme, Investment, Pete Redfern, profit, Property, Real estate economics, residential development, Residential Property Index, t4ts, Taylor Wimpey, train 4 trade skills news, train4tradeskills. Bookmark the permalink. Leave a comment.