Monday, July 4, 2022

Report of gloomy property market rejected by house builder

House builder rejects a downward trend in the property sector

Despite a gloomy scenario in the property sector in the UK, there are few who do not agree with the study by RICS, in which it reported a downfall in the property and real estate sector. The downturn in the property and real estate sector is, at least, in part, believed by many to be the fallout of the uncertainty created out of a lack of knowledge and information regarding the exact way brexit comes into force and the results it will have on the sector. The property sector in the UK is generally believed to be going down, however, Galliford Try has reported better performance across its three arms. The company has brushed off concerns that the property sector is slowing down.

Although, a study by RICS suggested that downturn in the real estate sector has begun to descend across the UK and reported that house prices are stable over the past three months. Apart from this, prices of houses are expected to fall in most parts of the country. The study reported a growing pessimism among real estate agents.

However, house builder Galliford Try has something else to say. The company said that it is seeing “good market conditions” across its businesses. It said that average sales rates in its Linden Homes house building business have increased to 0.62 units per site per week so far in 2017, compared to 0.56 this time last year. At present, the company has £652mln worth of sales reserved, contracted or completed and 11,200 plots under its belt which are spread across the UK and it is optimistic regarding land opportunities. Galliford’s partnerships and regeneration business is “capitalising on its strong position”, and the company said recent government announcements have “provided increased certainty” to clients to bring forward investment. It has received a record £1.3bn, with “significant growth in pipeline opportunities”. The company had acquired Drew Smith earlier this year and termed the performance of the new addition positive. The third arm of the company, construction, also continues to perform well. It has already received orders worth £3.6bn.

Overall, the company continues to perform which goes against the scenario perceived by many. The company said that things are moving according to its strategy. It believes that it will achieve the goal it has set to achieve by 2021. It said that it is confident to continue the progress in all the three arms of its venture. The company’s chief executive Peter Truscott said that the company is sure of its ability to deliver despite a period of lower growth and adverse economic conditions prevailing in the country.


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