Housebuilders accused of focusing on dividends instead of supply

The UK’s biggest housebuilders have paid shareholders £16bn in dividends over the last 18 years, while failing to significantly increase the supply of new homes, according to a report. Researchers from Sheffield Hallam University found the eight largest firms paid shareholders 260% more in 2022 than 2005. The firms are Barratt, Taylor Wimpey, Persimmon, Berkeley, Bellway, Redrow, Bovis and Crest Nicholson. Their dividends payments totalled £1.8bn in 2022, representing 47% of pretax profit. The annual number of homes built increased by 23%, from 66,902 in 2005 to 82,288 in 2022. Firms paid an average of more than £22,000 in dividends for each unit built. The report calls on the government to “curb excessive shareholder returns and capture more value for reinvestment”. CityAM