Housebuilding Activity Boosts As House Prices Go Up

The amount of shares in the housebuilding sector increased as a result of the positive trend in property prices.It was caused not only by the fact that house prices went up for the first time since October 2007, but also by the fact that the decline rate of the construction sector slowed down. The figures, associated with property prices, revealed by Nationwide Building Society helped the housebuilding start its recovery. Let us remind that an average house in the UK was priced at £150,946 in March, which represented a 0.9% increase from February. For instance, Taylor Wimpey added 20%, Barratt Developments gained 20%, Bellway – 9%, Bovis Homes – 8%, and Persimmon – 12%. As the representatives of Bellway, UK's third-largest housebuilder, said earlier this week, the company has registered a doubled number of reservations ever since the end of 2008. Although investors’ reaction was very enthusiastic, Nationwide warns that the recovery of the housing market is quite imminent and government’s measures will also take time before the market starts its sustained recovery. Despite the good news, Bellway admitted that it shares the opinion of Nationwide and company’s management understands that the encouraging figures cannot be took for market recovery.