Housebuilding ‘will pick up’

The level of housebuilding in the UK will increase soon, as shown by the determination of building firms to raise more finance, it has been claimed.

Business editor at Construction News Nick Whitten said efforts by Barratt Developments and Redrow to acquire capital through new share issues are a clear sign that they plan to start constructing.

It was “only a matter of time” before this happened, he noted, pointing to the fact that Wimpey has already sought £510 million from its shareholders.

“The last eight months has seen increasingly encouraging signs returning to the residential property market and housebuilders’ confidence is increasing,” Mr Whitten added.

This may encourage those looking to apply for a mortgage, as there could be more choice in the market as new building increases.

Barratt’s rights issue is attempting to raise £720 million, while Redrow is seeking £150 millon of funding for its new projects.

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