Builders quids in

Published on 19/08/2012 00:00

TWO of Britain’s biggest housebuilders have cashed in on the slump in land prices following the financial crisis, boosting margins and pushing the sector further down the road to recovery.

Bovis Homes and Persimmon are poised to report solid half-year results as they 
benefit from the cheap land plots and a focus on building more family homes.

This week’s numbers are also expected to reflect a strong spring selling season as first-time buyers rushed to take advantage of a stamp duty holiday before it expired.

Since then, the UK government has launched its NewBuy scheme to encourage the return of 95 per cent loan-to-value mortgages.

Persimmon, led by chief ­executive Mike Farley, is tipped to report a 30 per cent hike in pre-tax profits to £75.3 million. Bovis Homes is expected to reveal that pre-tax profits nearly doubled to £15.2m in the first half of 2012, according to Numis analyst Chris Millington.