With national recovery being said to be led by the construction industry, it is definitely the housing market that is at the front of the recovery train. The Nationwide House Price Index has reported that house prices increased by 0.6% in August and were 3.5% higher than August last year. This brings the typical price of a house to £170,514. Also the Halifax House Price Index has reported that house prices increased by 0.4% in August, meaning that in the last 3 months they were 2.1% higher than the preceding 3 months.
Reflecting the recovery for the housing market some of the bigger house builders have reported large increases in profit. The first to report an increase, of 40% in pre-tax profits, is Persimmon homes, who announced in their half year results for 2013 that pre-tax profits rose from £96.9 million in 2012 to £135.3 million so far in 2013.Bovis Homes also reported a 19% increase in pre-tax profits, last year they saw a profit of £15.6 million which has risen to £18.6 million. Galliford Try reported “excellent progress as a group in the financial year and delivered a record profit before tax” of £74.1 million.
This new confidence has also been reflected in job vacancies with the UK Job Market Report from Adzuna.co.uk showing thatconstruction vacancies are up 9%.