Housing market improving, say Wimpey and Wilson Bowden

The greenshoots of recovery are apparent in the housebuilding market, according to Wilson Bowden and George Wimpey.

In trading statements issued to the Stock Exchange this morning, both groups noted an improvement in the marketplace after a slow 2005.

While Wilson Bowden reported a 2.5% drop in completions (to 2,135 units at an average selling price up 6% to£207,000) in the first half of 2006 compared with the same period a year ago, chief executive Ian Robertson said: "There has been a noticeable improvement in sentiment in many parts of the housing market during the first half, with reservations at higher levels than in 2005."

However, margins remained under pressure.

George Wimpey had more positive news with completions up 19% to 7,822, the highest level the group has achieved in the past 25 years. Chief executive Pete Redfern noted: "Compared with the slow market conditions in the first half of 2005, buyer confidence has improved, although affordability constraints in some parts of the country mean prices remain competitive. The market across the South has shown greatest improvement with price growth being experienced in many locations."

Indeed, Wimpey's UK completions were up 24% to 5,854. However, the average selling price showed only modest improvement.

• Greg Locke, chief executive of David Wilson Homes Southern, has joined the Wilson Bowden board in the newly created role of chief executive of David Wilson Homes.