Housing Market Report

Transcription

1 Housing Market Report No.293 February 217 CONTENTS HOUSING SUPPLY 2 Housing starts 2-3 Housing completions 4 Regional analysis 5 Under construction 6 Housing supply tables 7-8 HBF SURVEY 9 Key findings 9 Annual comparisons 1 Monthly comparisons 11 House prices and sales HBF tables MARKET OUTLOOK % Monthly difference % balance of site visits We provide the most up-to-date data and analysis on the housing market, from the most authoritative sources. This publication, compiled and written by NHBC is essential reading if you re tracking market trends. +8.% NHBC rolling three months private housing starts to January % NHBC rolling three months private housing completions to January 217 9,25 NHBC private housing starts in January 217 5,55 NHBC private housing completions in January 217 NHBC HOUSING STARTS Housing starts increased both year-on-year and across the rolling three months (Table 1.1). NHBC HOUSING COMPLETIONS Completions increased both year-on-year and across the rolling three months (Table 1.2). GOVERNMENT STATS ONS housing output continues to increase year-on-year (Table 1.2). HBF SURVEY Housing Market Report exclusively presents results from the January 217 HBF regional survey of home builders (Survey Responses = 154). MONTHLY % DIFFERENCE FOR HOUSING SUPPLY current previous difference +48% Monthly difference % balance of net 2,167 2, % ONS OUTPUT ( m) 167,3 162,9 +2.7% PLOTS UNDER CONSTRUCTION 61,8 59,8 +3.3% HOMES NEARING COMPLETION *see page 9 for explanation of balances. See Table 2.1 See Chart 1.7 Housing Market Report is an NHBC publication NHBC 216. NHBC, NHBC House, Davy Avenue, Knowlhill, Milton Keynes MK5 8FP Phone: Fax: HMR subscriptions: or call and ask for 'HMR'. Housing Market Report is prepared using sources that are believed to be reliable. No representation is made that it is accurate or complete. No reproduction without NHBC prior permission in writing ISSN (Online)

2 HOUSING SUPPLY NHBC data shows that in the rolling twelve months to January 217, private sector housing starts were up by 3.2% but affordable sector starts were down by 1.7%, resulting in a 2.1% increase overall, compared to January 216. Over the same measurement period, private sector completions were up by 8.%, affordable completions down by 14.8%, resulting in a 1.7% increase overall. CHART 1.1 NHBC STARTS (UK) Rolling 12 month volumes Source: NHBC Number of Starts 18, 16, 14, 12, 1, 8, 6, 4, 2, Private Affordable Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul , 111,4 +3.2% Private sector starts in rolling 12 months - January 217 compared to January ,9 34,5-1.7% Affordable sector starts in rolling 12 months - January 217 compared to January ,9 145,9 +2.1% Combined sector starts in rolling 12 months - January 217 compared to January 216 CHART 1.2 NHBC STARTS (UK) Rolling three months Source: NHBC Number of Starts 35, 3, 25, 2, 15, 1, 5, Private Affordable Mar-15 May-15 Sep-15 Nov-15 Mar-16 May-16 Sep-16 Nov-16 23,3 21,6 +7.9% 7,45 6, % 3,75 27,95 +1.% Private sector starts in rolling three months - January 217 compared to January 216 Affordable sector starts in rolling three months - January 217 compared to January 216 Combined sector starts in rolling three months - January 217 compared to January 216 PAGE 2 OF 17

3 HOUSING SUPPLY HOUSING MARKET REPORT NO. 293 FEBRUARY 217 CHART 1.3 NHBC PLOT STARTS COMPARED TO SITE STARTS (UK) Monthly volumes Source: NHBC New sites started 1,2 1, Sites (LHS) Plots (RHS) 25, 2, 15, 1, 5, Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 New plots started % 975 1,25-4.9% 4,9 5,7-14.% Sites started this month compared to January 216 Sites started in rolling three months - January 217 compared to January 216 Sites started in rolling 12 months - January 217 compared to January 216 CHART 1.4 NHBC PRIVATE STARTS (UK) BY BUILDER SIZE Rolling three months private starts; % year on year growth Source: NHBC % year on year growth Top 1 builders Smaller builders Top 11-5 builders All builders Feb-15 Mar-15 Apr-15 May-15 Jun-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 13,8 12, % Top 1 builder s starts year-on-year growth in rolling three months - January 217 compared to January 216 5,2 4, % Top 11-5 builder s starts year-on-year growth in rolling three months - January 217 compared to January 216 6,5 4, % Smaller builder s starts year-on-year growth in rolling three months - January 217 compared to January % % of private sector starts from top 5 builders in rolling three months to January 217 PAGE 3 OF 17

4 HOUSING SUPPLY HOUSING MARKET REPORT NO. 293 FEBRUARY 217 CHART 1.5 NHBC COMPLETIONS (UK) Rolling 12 month volumes Source: NHBC Source: NHBC Number of Completions 175, 15, 125, 1, 75, 5, 25, Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Private Affordable 19,6 11,5 +8.% 32,9 38,6-14.8% 142,5 14,1 +1.7% Private sector completions in rolling 12 months - January 217 compared to January 216 Affordable sector completions in rolling 12 months - January 217 compared to January 216 Combined sector completions in rolling 12 months - January 217 compared to January 216 CHART 1.6 NHBC PRIVATE COMPLETIONS (UK) BY BUILDER SIZE Rolling three months private completions; % year on year growth Source: NHBC Source: NHBC % year on year growth 4 Top 1 builders Top 11-5 builders Smaller builders All builders Feb-15 Mar-15 Apr-15 May-15 Jun-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 15,5 15, +.3% Top 1 builder s completions year-onyear growth in rolling three months - January 217 compared to January 216 5,7 4, % Top 11-5 builder s completions year-onyear growth in rolling three months - January 217 compared to January 216 6,35 6,2 +2.4% Smaller builder s completions year-onyear growth in rolling three months - January 217 compared to January % % of private sector completions from top 5 builders in rolling three months to January 217 PAGE 4 OF 17

5 HOUSING SUPPLY HOUSING MARKET REPORT NO. 293 FEBRUARY 217 FIGURE 1 THREE MONTH STARTS Top 3 most active local authorities Newham Daventry Cherwell 11 Local authorities with no starts 6 Local authorities above required start rate of nine or more homes starting every three months FIGURE 2 THREE MONTH COMPLETIONS Top 3 most active local authorities Tower Hamlets Dartford Daventry 4 Local authorities with no completions 79 Local authorities above required completion rate of nine or more homes completing every three months PAGE 5 OF 17

6 HOUSING SUPPLY HOUSING MARKET REPORT NO. 293 FEBRUARY 217 CHART 1.7 NHBC UNDER CONSTRUCTION (UK) Private and affordable Source: NHBC Plots under construction 25, 2, 15, 1, 5, Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul ,3 16,8 +4.% Total number of plots under construction compared to January ,3 162,9 +2.7% Total number of plots under construction compared to December ,3 Total number of plots under construction by the end of January 217 CHART 1.8 BREAKDOWN OF PLOTS UNDER CONSTRUCTION By key inspection stage and type Source: NHBC Plots under construction 14, 12, 1, 8, 6, 4, 2, Pre handover First fix Roof Super structure DPC Foundations No progress in 12 months House Flat 6,6 Homes nearing completion in January ,4 Homes in the early stages of construction (up to DPC) in January % Number of plots nearing completion compared to January % Homes contructed up to DPC compared to January 217 PAGE 6 OF 17

7 HOUSING SUPPLY TABLES HOUSING MARKET REPORT NO. 293 FEBRUARY 217 TABLE 1.1 PRIVATE HOUSEBUILDING INDICATORS DCLG NHBC Great Britain Actual England Actual United Kingdom Actual Number () Annual % change Number () Annual % change Number () Annual % change Q Q Q Q Q Q October November December January Last 3 months Year to date Sources: Department for Communities and Local Government (DCLG); NHBC, Office for National Statistics, Scottish Government Notes: 1. NHBC private housing starts reflect the current sector status of the plot. 2. DCLG private housing starts reflect the sector status at the time the plot was started i.e. Does not make allowances for private stock being sold to RSLs. TABLE 1.2 HOUSING COMPLETIONS Great Britain Actual Number () Annual % DCLG ONS NHBC Number () England Actual Annual % Great Britain not seasonally adjusted Output ( m 25) Annual % change United Kingdom Actual Number () Annual % change , , , Q , Q , Q , Q , Q , Q , October 2, November 2, December 2, January Last 3 months Year to date Sources: Department for Communities and Local Government (DCLG); NHBC, Office for National Statistics, Scottish Government Notes: 1. NHBC private housing completions reflect the current sector status of the plot. 2. DCLG private housing completions reflect the sector status at the time the plot was started i.e. Does not make allowances for private stock being sold to RSLs. PAGE 7 OF 17

8 HOUSING SUPPLY TABLES HOUSING MARKET REPORT NO. 293 FEBRUARY 217 TABLE 1.3 REGIONAL PRIVATE HOUSING STARTS - GOVERNMENT Scotland North East North West Yorkshire & Humber West Midlands East Midlands East of England Greater London South East South West England Wales Great Britain Number 211 9,942 3,125 8,18 7,235 8,356 6,235 12,553 14,44 15,375 11,81 86,184 4,255 1, ,489 3,583 9,13 6,618 6,855 6,731 1,49 11,222 13,893 1,783 79,278 4,138 93, ,7 4,827 1,594 8,521 9,82 8,355 13,161 13,4 17,864 12,84 98,284 4, , ,966 6,53 11,816 12,323 11,25 9,788 12,588 13,941 18,651 14,35 11,715 5,54 129, ,67 5,794 12,683 1,297 11,698 1,875 14,77 18,436 2,575 14, ,31 5, , ,22 16,94 1,872 12,482 12,343 16,29 13,396 22,43 15, ,422 Annual % change Number 215 Q3 3,288 1,439 3,549 2,515 3,192 2,869 4,16 4,444 4,62 3,894 3,61 1,352 35,25 Q4 2,491 1,512 2,669 2,48 2,513 2,412 2,986 3,132 4,794 2,994 25,42 1,195 29, Q1 2,686 1,454 3,95 2,392 3,79 2,867 3,688 4,442 5,22 3,45 3, ,54 Q2 3,348 1,933 3,989 2,838 3,342 3,5 4,93 3,45 5,859 4,38 32,844 1,29 37,221 Q3 2,221 5,6 3,123 3,27 3,849 4,487 2,57 5,713 4,424 34,6 1,475 Q4 1,612 3,995 2,519 2,791 2,622 4,22 3,42 5,629 3,222 29,454 Annual % change 215 Q Q Q Q Q Q Source: Department of Communities and Local Government (DCLG), Welsh Assembly Government, Scottish Government PAGE 8 OF 17

9 HBF SURVEY Key Findings January 217 recorded a +17 balance score for the year-on-year comparison of site vistors, which is more positive than the January annual average balance score of +5. recorded a similar positive balance score of +16 for the year-on-year comparison, which is also above the January annual average of +1. House builders reported positive seasonal balance score trends for both site visitors and net between December and January of +59 and +48 respectively. Both measures were slightly below their January seasonal annual average scores of +6 and +51. reservation balance scores were positive in each of the categories for existing owner-occupiers, first-time buyers and buy-to-let/investment buyers between December and January (scores below). The industry reported a positive balance score of +12 for net house prices in January, which is lower than the January average of +17. The balance score for the use of sales incentives remained positive at +6. House builders were very optimistic that new home sales will rise in 217, with a healthy positive balance score of +51 for January 217, with larger companies being more optimistic than smaller companies. Presentation Notes Results are weighted to take account of differences in the sizes of companies responding to the survey. A balance is the difference between the percent of companies reporting an increase less the percent reporting a decrease. A positive balance indicates growth, a negative balance decline. The size of a balance does not necessarily indicate the scale of increase or decrease. For example, a balance of +4% reporting a rise would tell us that substantially more companies were reporting a rise than a fall, but it would not tell us whether the industry was experiencing a small or a large overall percentage increase. Similarly a balance of -4% would indicate a fall, though it would not tell us whether the industry had experience a large or small percentage fall. Larger companies are defined in the survey as starting 1 or more dwellings in the region in the previous year, while smaller companies started less than 1 units. +59% balance for home movers compared to last month +49% balance for first-time buyers compared to last month +22% balance for buy-to-let/ investment buyers compared to last month PAGE 9 OF 17

10 HBF SURVEY HOUSING MARKET REPORT NO. 293 FEBRUARY 217 CHART 2.1 HBF MONTHLY SURVEY (GB) Site visitors balance: year-on-year Source: HBF Balance % up less % down Down on a year ago Up on a year ago Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul % Annual balance site visits -18% Annual balance site visits for smaller companies +33% Annual balance site visits for larger companies +5% Site visitors average annual balance % for January CHART 2.2 HBF MONTHLY SURVEY (GB) balance: year-on-year Source: HBF Balance % up less % down Down on a year ago Up on a year ago -1. Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul % Annual balance net -21% Annual balance net for smaller companies +33% Annual balance net for larger companies +1% average annual balance % for January PAGE 1 OF 17

11 HBF SURVEY HOUSING MARKET REPORT NO. 293 FEBRUARY 217 CHART 2.3 HBF SURVEY BALANCES (GB) Site visitors balance: month-on-month Source: HBF Balance % up less % down Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec +59% Monthly balance site visits +3% Monthly balance site visits for smaller companies +86% Monthly balance site visits for larger companies +6% Site visitors average seasonal balance % for January CHART 2.4 HBF SURVEY BALANCES (GB) balance: month-on-month Source: HBF 8 Balance % up less % down Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec +48% Monthly balance net -6% Monthly balance net for smaller companies +74% Monthly balance net for larger companies +51% average seasonal balance % for January PAGE 11 OF 17

12 HBF SURVEY HOUSING MARKET REPORT NO. 293 FEBRUARY 217 CHART 2.5 CHANGE IN NET HOUSE PRICES (GB) HBF Survey change during the month; RICS change in past three months, nsa Source: HBF Up on previous month 4. Balance % up less % down Down on previous month HBF Survey RICS Housing Market Survey -12. Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 house prices +12% Monthly balance % difference of net house prices Use of sales incentives +6% Monthly balance % difference for the use of sales incentives % Monthly balance net house prices for smaller companies +9% Monthly balance % difference for the use of sales incentives by smaller companies +19% Monthly balance net house prices for larger companies +4% Monthly balance % difference for the use of sales incentives by larger companies +17% house prices average seasonal balance % for January +12% Use of sales incentives average seasonal balance % for January PAGE 12 OF 17

13 HBF SURVEY HOUSING MARKET REPORT NO. 293 FEBRUARY 217 CHART 2.6 HBF SURVEY BALANCE (GB) Expected change in new home sales: year-on-year Source: HBF Balance % up less % down Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Note: from October, survey question relates to expected change in sales in the following calendar year. +51% Monthly balance % difference of expected change in new home sales +2% Quarterly balance % difference in number of sites on which you are actively selling homes +18% Monthly balance % difference of expected change in new home sales for smaller companies -13% Quarterly balance % change in the current level of work-in-progress to meet expected sales demand +67% Monthly balance % difference of expected change in new home sales for larger companies -34% Quarterly balance % change in the current level of stocks to meet expected sales demand +33% Expected change in new home sales average seasonal balance % for January PAGE 13 OF 17

14 HBF SURVEY TABLES HOUSING MARKET REPORT NO. 293 FEBRUARY 217 TABLE 2.1 HBF SURVEY: SUMMARY MONTHLY RESULTS (GB) Balance between % reporting an increase less % reporting a decrease Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Compared with the same month a year ago: Site visitors Compared with the previous month: Site visitors prices during the month Current use of sales incentives Expected sales in 216 compared to TABLE 2.2 QUARTERLY SUMMARY HBF SURVEY RESULTS % considering factor a major constraint On sales Dec Mar Jun Sep Dec Mar Jun Sep Dec Buyer confidence Mortgage rates Mortgage terms Mortgage availability House prices Delays / chains Down valuations On production Labour availability Labour costs Materials availability Materials prices Land availability Land prices Planning delays Development finance TABLE 2.3 QUARTERLY SUMMARY HBF SURVEY RESULTS Dec Mar Jun Sep Dec Mar Jun Sep Dec Change in number of active sites in last three months Planned starts in Expected house price change next 12 months Change in land prices in last three months Level of work in progress to meet demand (1) Level of completed stocks to meet demand (1) Note: 1. A positive (negative) balance indicates excess (inadequate) work in progress or stocks PAGE 14 OF 17

15 HBF SURVEY TABLES HOUSING MARKET REPORT NO. 293 FEBRUARY 217 TABLE 2.4 MONTHLY HBF SURVEY RESULTS GB Site visitors (year on year) (year on year) Site visitors first time buyers existing owner occupier investment buy to let Change in net house prices Current use of sales incentives Level of sales expected in 217 in the region compared with 216 Up No change Down Balance TABLE 2.5 MONTHLY HBF SURVEY RESULTS BY REGION Site visitors (year on year) (year on year) Site visitors first time buyers existing owner occupier investment buy to let Change in net house prices Current use of sales incentives Level of sales expected in 217 in the region compared with 216 Scotland North East North West Yorkshire & the Humber West Midlands East Midlands East of England Greater London South East South West Wales GB PAGE 15 OF 17

16 MARKET OUTLOOK Consumer Confidence GfK s Consumer Confidence Index increased by two points in January, to a score of -5. Three of the measurements used to calculate the index saw increases, one was unchanged, whereas the other decreased. Chart 3.1 shows the sub-indices that HMR focuses on: confidence in the 12-month outlook increased in each of the categories for the economy, unemployment and household finances for the general economic outlook of the UK. CHART 3.1 CONSUMER CONFIDENCE: OUTLOOK FOR 12 MONTHS Index score: Economy, unemployment & households own finances Source: GfK/ NOP consumer confidence survey Balance optimistic/pessimistic Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 House builders share prices as of 17th February 217 House builders share prices rose consistently throughout the end of January through to the middle of February to reach their highest level for 217 so far. The House Builders Share Price Index increased by 2.2% compared to last month but are still down by 4.6% compared to the same time last year. Since the start of the year, the House builder s Share Price index has increased by 1.8%, according to data provided to HMR by Citi (see Chart 3.2). Since the EU Referendum result on 23rd June 216, the House Builders Share Price Index has dropped by 7.4% (FTSE Allshare index +13.9%). However, since the new Prime Minister took office on 13th July 216, it has increased by 24.4% (FTSE All-share index +1.1%). February also saw the House of Commons vote to back the EU referendum result on 1st February, whilst releasing their Housing White Paper on 7th February, which has seen share prices rise since both dates by 4.6% (FTSE All-share index +2.6%) and 3.1% (FTSE All-share index +1.5%) respectively. CHART 3.2 STOCK MARKET Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Household finances Economy Unemployment Jan-13 Jul-13 Jan-14 Jul-14 On the 17th February, the House builders index was up 11.% on the 215 election-day value (FTSE All-share index 6.4%). It was however down by 5.2% following the budget announcement on 16 March 216 (FTSE All-share index +16.9%). Since the first announcement of Help to Buy Equity Loan (HtB1) in the 213 Budget (2th March), House builders share prices had risen by 89.5% (FTSE All-share index +16.8%). The index was up 33.2% compared with its value at the time of the 214 Budget (19th March) when the Chancellor announced the extension of HtB1 to 22 (FTSE All-share index 12.%). From a longer-term perspective, House builders share prices on 17th February were up 626.9% on their all-time trough on 28th October 28 (FTSE All-share Index +12.%) and also up by 1.1% on their all-time peak on 1 April 27 (FTSE Allshare Index +18.6%). House Builder Index; FTSE All-share Index - from 213 Budget Source: Citi 15, 14, 13, 12, 11, 1, 9, 8, 7, 6, House Builders Index (LHS) FTSE All-share Index (RHS) 7, 6,5 6, 5,5 5, 4,5 4, 3,5 3, 2/3/213 2/5/213 2/7/213 2/9/213 2/11/213 2/1/214 2/3/214 2/5/214 2/7/214 2/9/214 2/11/214 2/1/215 2/3/215 2/5/215 2/7/215 2/9/215 2/11/215 2/1/216 2/3/216 2/5/216 2/7/216 2/9/216 2/11/216 2/1/217 PAGE 16 OF 17

17 MARKET OUTLOOK Corporate news Ardmore Construction Ltd announced (12 January, Construction Enquirer) it has returned to profit and growth with a vastly improved set of results. The contractor made a pre-tax profit of 4.6 million for the year to 3 September 216 compared (215: 5.9 million). Gross margins also recovered to 5.9% from an unsustainable 3.6% in 215. BDW Trading Limited reported (12 January, Construction Enquirer) it failed to raise completions for the first time since the financial crisis as home sales halved in the Capital. Barratt new home completions fell 5.5% to 7,18 in the first half of the year dragged down by London which plummeted from 842 to around 367 homes. The fall was partially offset by the regions, which achieved the highest level of completions for nine years at (6,813 (215: 6,784). Average selling prices continued to strengthen, albeit more modestly, up nearly 4% to 264,. Crest Nicholson Residential Limited announced (24 January, Construction Enquirer) it has achieved its target of 1 billion sales for the year after completions rose 5% to 2,87 homes. During 216 pre-tax profits soared 27% to 195 million. The housebuilder said they remain committed to, and on track to deliver, their targets of 4, homes and 1.4 billion of sales by 219. Laing O Rourke Construction South Limited reported (23 December, Construction Enquirer) a 246 million loss after being hit by poor performance of its massive 1.3 billion joint venture hospital project in Canada and several now completed problem UK contracts. Laing O Rourke put its profitable Australian business up for sale nearly a year ago after revealing a 58 million pre-tax loss at its European business last year. It is now rumoured the Australian arm has been taken off the market after Laing O Rourke failed to find a buyer. Lakehouse Contracts Ltd reported (24 January, Construction Enquirer) a 31.7 million operating loss for the year to 3 September 216 on underlying turnover down to 35.8 million from million last time. Construction saw revenue dip from 52.1 million from 73.4 million following delays caused by clients moving from single to two-stage procurement. McCarthy & Stone Retirement Lifestyles Limited announced (25 January, Property Week) it has seen normal trading conditions since the end of its previous financial year. The group stated year-to-date are currently running ahead of the prior year and have contributed a further 26 million of revenue to the group s forward order book, representing a year on year increase of 5% due to improved average selling prices achieved. The group added total forward sales including legal completions are now around 2% behind the previous year at 323 million. The group added the trading outlook for the year remains in line with the board s expectations. St Modwen Properties Ltd reported (7 February, Housebuilder News) a 49% increase in profits for 216, contributing 15.3 million to the group s residential profits of 27.1 million and overall profit before tax of 6.8 million. The firm completed 485 units in the year, up from 315 in 215. Overall average sales rate was.8 per outlet per week. Taylor Wimpey UK Limited reported (11 January, Housebuilder News) total home completions rose 4% in 216 to 13,881, 19% of which were affordable. The firm s net private reservation rate in the year was.72 homes per outlet per week, slightly down on 215, but private average selling price was up 13% to 286,. The firm expects to report an improved operating profit margin in 216 of around 2.8% (215: 2.3%) and a return on net operating assets of more than 3% (215: 27.1%). Housing Market Report is an NHBC publication NHBC 216. NHBC, NHBC House, Davy Avenue, Knowlhill, Milton Keynes MK5 8FP Phone: Fax: HMR subscriptions: or cal and ask for 'HMR'. Housing Market Report is prepared using sources that are believed to be reliable. No representation is made that it is accurate or complete. No reproduction without NHBC prior permission in writing ISSN (Online)