Slimmer housebuilders bide time

In terms of size, Britain's housebuilders are a shadow of the companies they once were - and although some painful self-help has restored most to profit and the dividend list, external conditions will need to improve before there's a sustained recovery in share prices.

Persimmon , the sector's largest player, is a good example. It expects to sell around 9,300 homes this year, much the same as last year, but far below the 16,700 units sold in 2007. Average prices fell in the first half, too, although completion of more higher priced units in the second half will push average prices above those seen last year. The company remains a solid operator - we advised - but lacks significant exposure to greater London, the strongest area of the housing market.

Rival Taylor Wimpey () is similarly treading water, and believes that unit sales and selling prices will be little different from last year, although group finances will certainly receive a boost from the imminent sale of the group's US operation for around £695m.

Construction group and housebuilder Galliford Try, whose shares we , seems better placed. It pushed average private sale prices up by 10 per cent to £227,000 in the year to June - although affordable home prices fell from £124,000 to £106,000. Overall completions jumped by 27 per cent to 2,170.

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