Research by the new build snagging and defect management experts, BuildScan, has revealed that 12 of Britain’s biggest housebuilders have seen their profits half by 51% due to the pandemic.
BuildScan analysed profits before tax for the likes of Persimmon, Berkeley, Bellway and Taylor Wimpey during 2020 and how this compared to 2019 to see what impact Covid has had.
The figures show that collectively, profit before tax for all 12 housebuilders sat at £2.6bn in 2020, a 51% decline when compared to the £5.3bn made in 2019.
Keepmoat has seen the largest hit due to Covid, with 2020 bringing losses of -£19.5m versus profits of £37.7m in 2019 – a -152% swing year on year.
Countryside also suffered losses to the tune of -£1.9m in 2020, a -101% drop on the £203.6m in profits seen in 2019.
Taylor Wimpey (-68%), Redrow (-66%), Bellway (-64%), Crest Nicholson (-62%) and Miller (-51%) also saw some of the largest declines in pre-tax profits. However, the good news is that 2020 did see profits remain in positive territory despite the drop, as was the case for Barrat, Berkeley, Bovis and Persimmon.
Founder and Managing Director of BuildScan, Harry Yates, commented: “With the stamp duty holiday bringing such a sharp reversal in fortunes where domestic market health is concerned, it’s easy to forget that the pandemic has been far from a walk in the park for the wider industry, particularly in the early days of 2020.
“This is evident when analysing the performance of the nation’s biggest housebuilders with each of them seeing a considerable decline in profits between 2019 and 2020.
“We seem to put the boot in quite regularly where these industry giants are concerned but it’s important to note that they’ve done an incredible job in what have been very testing circumstances. They’ve pivoted quickly in order to continue delivering homes while adapting to the new Covid safe landscape required of them.
“In fact, the figures for the final quarter of 2020 demonstrated an incredible effort to pull both new home completions and registrations back to almost pre-Covid levels and so for that, Britain’s housebuilders must be commended. With the market remaining red hot and normality returning, albeit at a snail’s pace, we should see housebuilder profits boosted in 2021 and this negative trend reversed.”