Newly built homes drop by 30%

Posted: 14 Jan 2009 09:57:03 GMT

Housebuilder Taylor Wimpey has this week revealed that it reduced the total number of homes it built during 2008 by around 30 per cent compared to the year previous.

By the year-end, 13,394 homes had been constructed by the company compared to the 20,690 recorded in 2007.

Such a move - if it is replicated across most homebuilders - could lead to a slight slowdown in the falls in house prices.

Taylor Wimpey itself was sceptical of such a boost to the housing market, however.

"We remain of the view that there will not be a recovery in the UK housing market in the short term," a statement read.

"Whilst we welcome the recent reductions in interest rates, the availability of mortgage finance remains severely restricted and, together with increasing economic uncertainty, continues to have a detrimental impact on consumer confidence."

Homeowners who have chosen to sell their property despite the strong favour offered to buyers in today's market may benefit from advertising their home online, which could reach more buyers than a traditional estate agent's office.



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