Housebuilders are beginning to present investors with a real quandary. There is no sign of the housing boom coming to an end, mortgages are getting even cheaper, demand is there and consumer confidence is increasing. The structural gap between homes built and homes needed can only get worse.
Every trading update from the sector has reflected this. Though price inflation may have slackened off — the Nationwide said the rise during the past year was 3.3 per cent — the builders are still benefiting from a change of mix as they put up larger homes.
So Persimmon was able to fall in line with the rest of the sector and report increases in completions and average selling prices. Visitor numbers are flattening, but the company,