National housebuilder Taylor Wimpey says its competitors are copying its policy of pricing new homes competitively, which is increasing the downward price trend and challenging sales volumes.
Its interim statement comes as the Royal Institute of Chartered Surveyors announced the average number of house sales per surveyor fell to 10.9 over the last quarter – the lowest level for 30 years – but that expectations of a sales improvement will come in the next three months.
Taylor Wimpey said it is selling homes on 400 sites and had made good progress on reducing the level of unsold homes by around 35% since the half-year to about 1,300 units – eight weeks of supply at current rates.
It remains cautious about starting new developments and said its build rate was 40% of normal levels, with private reservations down 27% for the second half to date compared with a year ago.
“We remain of the view that there will not be a recovery in the UK housing market in the short term,” it said.
Meanwhile, the latest trade survey from the Construction Products Association/Construction Confederation shows market deterioration had extended to previously buoyant sectors.
It expects the industrial sector to contract by 22% in 2008 and commercial activity to further slow. Private housing starts are forecast to fall 39%.
