Builders say rebound is starting to take hold

By DAILY MAIL REPORTER
Updated: 16:50 EST, 22 April 2011

Two of the country’s largest housebuilders indicated the UK’s fragile recovery may be beginning to gain traction as they posted largely positive trading updates.

Persimmon, the UK’s second-largest housebuilder, said sales reservations of new homes were up 12 per cent in the first quarter compared to last year and that its order book stood at £1.14billion, the same level as this time last year.

The improvement follows a tough end to last year, when the firm said bad weather and uncertainty following government spending cuts had hit sales.

Up: Two of the UK's largest housebuilders posted largely positive trading updates

The firm added it expects to build around 9,400 homes this year, the same amount as last year. Its stock closed up 5.3p at 469.9p.

Elsewhere, Taylor Wimpey, the third largest company in the sector, called market conditions ‘resilient’ and added that its order book stood at 5,681 homes, up 21 per cent since the beginning of the year. 

The business said it would use the proceeds from the sale of its US and Canadian businesses to fund the purchase of new land. Its stock closed up 0.9p at 38p.