Future 'looking brighter' for housebuilders
25th September 2009
Commenting on the recent rights issue offerings from Redrow and Barratt Developments, Construction News business editor Nick Whitten said "it was only a matter of time" before companies such as this went to investors for money so they can start building again.
"The last eight months has seen increasingly encouraging signs returning to the residential property market and housebuilders' confidence is increasing," he remarked.
Mr Whitten predicted that further major operators in the sector will follow in Redrow and Barratt's footsteps in the near future and pointed to Taylor Wimpey - which has already turned to investors to ask for £510 million - as an example.
Redrow is seeking £150 million, while Barratt is looking to raise £720 million. Both companies cited improving the ability to purchase and develop land as being among the aims of their respective rights offerings.
