Improvement in the housing market reported by Rightmove

Britain’s housing market is ‘thawing’, according to estate agency Rightmove. They reported a rise of 22% in houses being listed for sale as of the first three weeks of January, and Crest Nicholson is counting on that thaw to continue. Steve Stone, chief executive of the UK’s prestigious house builder, commented that the gradual recovery is largely due to government incentives for lenders designed to provide affordable mortgages for new home buyers.

Crest Nicholson reported a substantial profit in 2012, for the first time since the company was taken private in 2007. It has announced that it will return to the stock market with the sale of new and existing stock, at an expected £50 million to be used for debt repayment, and the existing shareholders are expected to cash out at about £25 million. After the sale of shares, at least 35% of the issued share capital will be free floating.

The UK’s housebuilding industry has been hit hard since 2007, however major builders like Crest, Barratt Developments and Taylor Wimpey all saw an improvement of at least 50% last year. In the 12 months to October 2012, net profit for Crest Nicholson rose by 58%, from £40.5 to £63.9. Mr. Stone said the IPO is a vote of confidence not just for Crest but for the entire industry.