UK House Builders Expected to Confirm Recovery

Confirmation of a recovery in the housing market should be provided this week from the UK’s biggest housebuilders that are publishing results that are expected to be buoyed by government schemes to bolster the market.

The report from Bovis is scheduled for Monday, followed by figures from Persimmon, Taylor Wimpey and Redrow and Barratt by the end of the week.

“Easing credit conditions, rising consumer confidence and Help to Buy have underpinned the strongest trading conditions for the housebuilding sector since the downturn,” said Gavin Jago, a research analyst at Shore Capital. “Despite upward pressures on build costs and land prices, we forecast significant earnings growth in the medium term and growing income attractions.”

The improving conditions are expected to help unleash bonus payouts for top bosses. The Observer reported that Pete Redfern, chief executive of Taylor Wimpey, was on track to be handed £4.5m of stock in April, and the former head of Persimmon, Mike Farley, almost £3m.