29th Jul 2014 06:41
LONDON (Alliance News) - As the UK housing shortage continues, there are fears that the major private-sector housebuilders are holding back on increasing supply, according to the Financial Times on Monday.
Ahead of their merger in 2007, both Taylor Woodrow PLC and George Wimpey PLC, were completing more than 21,000 homes a year between the two of them. Now Taylor Wimpey PLC insists it can produce no more than 14,000 units annually, the newspaper said.
?The majors aren?t going to build a lot more, so who is going to deliver these homes?? Rob Perrins, managing director of upmarket builder Berkeley Group Holdings PLC told the Financial Times. ?It?s a critical question this country needs to answer.?
Taylor Wimpey, Persimmon PLC and Barratt Developments PLC, which make up around 25% of total output, have each warned in recent months that they intend to continue cautious growth strategies and return cash to shareholders.
Taylor Wimpey particularly said that it has increased volumes since 2010 but wants to grow by improving quality not quantity.
During 2007, the industry saw a wave of consolidation, but in 2008 an Office of Fair trading study found ?little evidence? of anti-competitive behaviour by housebuilders and ?no evidence? of monopolies.
However, Perrins called the major players 'too powerful' and added that 'small builders are just not there at the moment,' limiting the opportunities for increasing supply.
http://www.ft.com/cms/s/0/e695e61e-1416-11e4-b46f-00144feabdc0.html?ftcamp=crm/email/2014729/nbe/UKBusiness/product&siteedition=uk#axzz38pk1e6Oo
By Tom McIvor; [email protected]; @TomMcIvor1
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