No end in sight for homes boom

All were today also reporting a massive growth in the region's rented sector as investors switch from the ailing stock market into buying both new and old property for rent.

The firmness of the booming market in new houses in North Yorkshire was today underlined by the announcement of astonishing half year profit figures for York-based Persimmon.

Persimmon - now Britain's biggest housebuilder - declared record pre-tax profits to June soaring 73 per cent to £83.9 million, compared with £48.6 million over the same period in 2000.

Riding the boom, Chris Johnson, chairman of Persimmon Yorkshire, now hopes to increase the 1,700 new homes built per year in the county to 2,000 within the next 18 to 36 months.

It is a boom fuelled by constraints on planning consents for housebuilders plus relatively low interest rates for mortgage borrowers.

Mr Johnson said: "There is a big and growing investor market, both private and institutional. How long institutional interest can be sustained is questionable with house prices rising as they are, but private investors will continue whatever."

A growing proportion of buyers of new apartments in the York area were investors, he said, including many who bought into Persimmon's 74-apartment Piccadilly Plaza and other apartment projects in Fulford and Haxby.

The buy-to-rent phenomenon was confirmed by Pam Cass, sales director of Bryant Yorkshire who in two days sold 25 of the 58 new apartments at York's new plush Westgate development in Leeman Road.

She said: "People are using the property market to invest rather than tying up their cash in the stock market, particularly sensitive pension funds."

One York estate agent's was taken by surprise at the overwhelming interest in property as investments.

Directors of Hunters, which has five bases in North Yorkshire, say they were astonished when a "buy to let" evening at their Colliergate, York office, at which they expected 50 people, attracted 112.

Updated: 14:15 Tuesday, August 28, 2001