Stable market delivers for Taylor Wimpey

By GARETH MACKIE
Published on 05/07/2012 00:00

Housebuilder Taylor Wimpey yesterday said it was confident of delivering improved results as it benefited from a stable housing market during the first half of the year.

The group, which is currently active across 34 sites in Scotland, said it completed a total of 5,083 homes during the first half, compared with 4,707 last year.

Average selling prices increased to around £175,000, up from £168,000 the previous year, and its total order book value, excluding completions to date and joint ventures, was £960 million as of 1 July.

Taylor Wimpey is due to report its first-half results on 1 August and chief executive Pete Redfern said: “Trading in recent weeks has continued to be stable, in spite of the ongoing uncertainty in the wider economy.

“Assuming that current stable market conditions persist, we expect to continue to achieve improved performance period on period and to deliver full-year returns in 2012 that are in line with our expectations.”

The group said mortgage lending continues to be restricted but it had been encouraged by the number of higher loan-to-value products since the start of the year under the UK government’s NewBuy scheme.

Following the update, Numis analyst Chris Millington upgraded his pre-tax profit forecasts for the full year to £166m, well ahead of last year’s £90m.