A flurry of updates from housebuilding giants and estate agents today pointed to the pandemic residential boom still having momentum.
Agent Savills and builders Persimmon and Vistry showed demand for properties has remained strong, even after a stamp duty holiday ended and amid rising costs.
Shares in Savills improved 16.4p to 1436.4p after the FTSE 250 company said profits for the year to December 31 are likely to be materially ahead of 2019 when it recorded pre-tax profits of £115.6 million.
Savills also released its house price growth forecasts, with the average UK figure of £327,838 as at July predicted to reach £370, 785 by 2026, marking a more than £40,000 gain.
In London the firm has forecast prices rising to £713,987 from £676,124.
The firm said it has continued to trade strongly since June, and added that the “continued strength of UK prime residential markets has exceeded our expectations”.
Savills, led by Mark Ridley, added that that “the anticipated tapering of market volumes” is now expected to take effect through 2022 rather than significantly affecting performance in the current half.
Demand has continued to hold up, even after a stamp duty holiday launched during the pandemic started to wind down from July, and finished at the end of September.
In an update for July to November 8, FTSE 100 firm Persimmon said: “The market has taken the changes in the Government's Help to Buy scheme and the stamp duty regime in its stride. Customer enquiry levels have remained encouraging throughout the period.”
The group added: “The fundamentals of the UK housing market remain strong with good levels of consumer demand and confidence, mortgage availability and low interest rates.”
Persimmon, which said sales rates remain well ahead of 2019 levels, is among firms to have also benefited by customers seeking more space and reassessing housing needs during lockdowns.
But the firm added that it remains mindful of “the evolving challenges as a consequence of Brexit and the continuing concerns relating to the pandemic on cost inflation and the supply chain and their impact on interest rates, consumer confidence and the UK economy”.
The shares were 75p lower, or 2.76%, at 2646p.
Shares in Vistry also slipped, down 9p to 1138.5p.
It said it continues to see some pressure across the building materials supply chain. But it remains on track to meet full year profit expectations.
