7
Nov
'Sales of new-builds to dip', construction head predicts
Sales of new-build properties in the UK are set to slow as
borrowers' confidence is knocked by reports of financial turmoil in
global markets, it has been predicted.
According to house-builder Bovis Homes, potential homebuyers'
confidence has been hit by high profile stories such as the bank
run seen at Northern Rock and reports of crisis in the US sub-prime
mortgage market.
Malcolm Harris, chief executive of Bovis, said: "Recent events in
the financial markets have adversely affected consumer confidence,
resulting in sales being lower than anticipates during the key
autumn selling period."
Mr Harris added: "Looking ahead, the mid and longer-term supply and
demand dynamic remains very attractive in the housing market, but,
in the short term, sales will reflect this recent decline in
consumer confidence, in particular as it relates to major consumer
purchases."
Last year Bovis sold 3,000 homes, but according to analysts polled
by the Times this is likely to increase only slightly this
year.
