U.K. Homebuilders Buying Land Below 2007 Peak Set to Profit

Published on Bloomberg.com
By Tim Barwell, Monday 9th September 2010

U.K. homebuilders are profiting from cheap land purchases just as property prices start to fall.

Developers are able to buy land for as little as a third of peak 2007 prices, London-based Savills Plc estimates. Those savings will more than make up for any weakness in the property market in the next three years, according to a shareholder in the industry’s biggest company.

“Some investors feel like they’re buying houses and not operating businesses, which is a mistake,” Gary Channon, chief investment officer of Phoenix Asset Management Partners, said in an interview. “Right now, housebuilders are making hay.” Phoenix owns 5 percent of Barratt Developments Plc.

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Tags: builders, developers, investors, land, property

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