Housebuilder cautious about property outlook

Posted 24/08/2009

One of the UK’s major housebuilders has welcomed improved conditions in the housing market, but warned that activity could be slowed down by various factors.

According to Bovis Homes, limited access to mortgage finance will continue to stand in the way of a full recovery.

In addition, it believes rising unemployment is hitting the number of people who are making a property purchase.

As a result, Bovis has said it is staying cautious in its expectations on house price movements over the next few months.

Similar views have been expressed by housebuilder Persimmon, which described the limited availability of mortgage finance in England as a concern.

However, the organisation noted the number of property sales it has seen during the summer months has been higher than expected.

This, it said, is notable because sales are traditionally down at this time of year.

Persimmon added that it believes selling prices have stabilised in most parts of the country.