Rental sector to gain as property developers reveal money woes

03 2008
The chances of thousands of Britons being able to afford their own place anytime soon have taken another knock with the news that construction firm Taylor Wimpey has been unable to raise £500 million in additional capital.

The company's statement to the stock market prompted its shares to fall by 50 per cent and came soon after it confirmed that it intends to close 13 of its 39 regional offices, with 900 jobs to be lost.

According to Jeremy Withers Green, a managing director of analysts Cazenove, the failure to raise the money needed is likely to further hinder the UK property sector, with fewer homes to be made available, thereby ensuring that prices remain unaffordable for many.

"The failure to raise fresh equity is a blow for both the group and the sector," he told The Independent.

"Conditions have deteriorated at an alarming rate."

Just recently it was reported by the National Landlords Association that demand for rental accommodation is booming as professionals, as well as students, see no sense in attempting to purchase a property in such an uncertain market.

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