- Created: Thursday, 15 February 2018 13:05
- Written by Trevor Rayne
Governments have repeatedly looked to housebuilding firms to solve the housing crisis in Britain. They are part of the crisis and profit from it; they are not the solution. Average house prices in Britain have doubled since 2000. Eight developers build over half of the country’s houses. A study by Sheffield Hallam University found that in 2012-2015, the biggest private housebuilders increased construction by a third, but tripled their profits. The four biggest housebuilding firms in Britain are Persimmon, Taylor Wimpey, Barratt Developments and the Berkeley Group. The returns made on the capital they invested in 2016 were Persimmon 39.4%; Taylor Wimpey 30%; Barratts 27.1% and the Berkeley Group 41.1%. These are relatively high rates of return. Together, the four chief executives of these companies paid themselves over £30m in 2016. In 2017, five directors of Berkeley Group got over £3m each; Persimmon’s chief executive is in line to receive a bonus of over £100m. Trevor Rayne reports.