South-East homes 'to fall 10%'

HOUSE prices are likely to fall by between 7% and 10% in the South-East over the next year, warned Stephen Wicks, chief executive of builder Country & Metropolitan.

His comments came as the Northern-based developer reported a 64% surge in taxable profits to £6.4m on almost doubled turnover to £63m for the 10 months to 30 June.

The results reflect the impact of a £14m acquisition policy during the period, which has given the group a two-thirds exposure to the North.

Wicks said the deal will help to shelter the group from a 'deteriorating' market in the South, whereas he sees a further firming in prices in the North as houses are more affordable there.

The group has a strong order book worth £45m, of which almost £27m is properties on which it has exchanged contracts already with customers. It aims to build about 950 homes this year.