Sun 13 Apr 2008
Big boys buffeted
Tony Pidgley, boss of the Berkeley Group, has warned of a “very tough time” ahead for the housebuilding industry.“There is no use pretending otherwise. This is serious stuff. There is a lack of feel-good factor and there is a limited availability of funds. People are just going to sit still until the crisis is over,” said Pidgley (pictured) in a Sunday Times article headlined: ‘Housebuilders teeter as the crunch bites.’
The Miller Group, Britain’s largest privately owned housebuilder, said it was facing the most difficult short-term market conditions in over a decade. Other big players, such as Barratt and Persimmon, have seen their share prices fall dramatically. Barratt, which bought Wilson Bowden for £2.2 billion last year, is expected to put the commercial development arm of Wilson Bowden up for sale.
“There are a few areas where prices are going up. It is not as if prices are falling disastrously anywhere. The problem is we are not seeing the volumes of sales we would like. People just do not want to commit,” said Keith Miller, chief executive of the Miller Group.
Miller has been under the spotlight recently following a drawn out public family feud over shares in the company. However the matter was finally resolved when it was announced that the Bank of Scotland (HBOS) had taken a significant stake in the company. The deal will now strengthen Miller’s finances and provide new debt facilities.
Although Miller, Housebuilder of the Year at the 2007 What House? Awards, would not go into any great detail, it has been reported that most of the shareholders who had been pushing for a sale of the company last year, had exited as part of the deal.
Pidgley ended on an upbeat note. “This crisis has come so quickly. But then, I think it could go away just as quickly.”
Posted by Marc Da-Silva
in Barratt Homes, Berkeley Homes, Miller Homes, News, Persimmon Homes, Tony Pidgley, Wilson Bowden on Sun 13 Apr 2008
Have your say and comment on this article