Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Builders buoyant despite house price blip

Magnus Grimond
Monday 22 September 1997 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Signs that housebuyers may be resisting higher prices has failed to dampen optimism as three of the building industry's biggest groups reported record profits.

A survey published today by the Royal Institution of Chartered Surveyors shows a fall in the number of surveyors seeing house price increases, with only London and the West Midlands reporting rises in the three months to the end of August.

But the findings are at odds with the view of Beazer, the UK's third- biggest housebuilder, which revealed yesterday that it believed it could nearly double its current output of houses.

Dennis Webb, chief executive, said there was still plenty of "headroom" for the housebuilding industry, with the 155,000 units built in the last year still well short of the 180,000 to 185,000 expected to be required to accommodate new households and the replacement of old housing stock. "We believe public demand can withstand some continuing interest rate rises, if this proves to be necessary."

Beazer's pre-tax profits jumped 34 per cent higher to pounds 62.2m in the year to June.

Ibstock, one of the UK's two largest brick groups, said there was continued optimism about the market for the rest of the year. Boosted by the acquisition of the Steetley brick operation from Redland last year, pre-tax profits jumped from pounds 2.41m to pounds 8.45m in the latest half-year.

Elsewhere, Rugby, the country's third-ranking cement producer, said the housing and commercial markets remained "reasonably strong".

Pre-tax profits before exceptional items rose 12 per cent to pounds 32.6m in the six months to June, while the interim dividend is being raised 10 per cent to 1.65p.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in