Wimpey reports US slowdown

UK housebuilder George Wimpey detailed the problems facing its US business today as it revealed a 35% fall in the value of its order book there.

Wimpey said the weakening housing market had impacted all US homebuilders, including its own business Morrison Homes.

However, the company said a continued strong performance from its UK operation was largely offsetting the tougher trading conditions across the Atlantic.

Wimpey added in an update: “Assuming no further deterioration in the US market we anticipate trading for the year will be in line with our expectations.”

The group said average net prices on current sales were around 10% below the beginning of the year.

Visitor levels and sales rates have been significantly below those in 2005, with the US order book at the end of September showing a year-on-year fall of 28% by volume and 35% in terms of value.