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: 

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Posted on February 29, 2012, in construction jobs, construction news, Housing Scheme, Infrastructure, t4ts, train4tradeskills and tagged , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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