UK housing starts hit a post-war low
According to the Telegraph, UK housing starts hit their lowest level in 63 years. With a lack of new business, how will Barrat’s and Taylor Wimpey survive? The Telegraph suggests that investors will save them, much as they have saved the banks who are also in need of capital.
“Housebuilders’ share prices surged by up to 13pc yesterday despite predictions from experts that activity in the sector is set to fall to the lowest level since the end of the Second World War.
The market was boosted by a report in The Sunday Telegraph outlining a rescue package for indebted housebuilders being proposed by investment bank UBS.
The bank is understood to be drawing up plans that would see major institutions inject fresh capital into the struggling companies instead of relying on a rights issue.”
–The Telegraph, 17 Jun 2008