Buoyant Taylor Wimpey defies the economic gloom

HOUSEBUILDER Taylor Wimpey said housing market conditions are robust and trading in the busy Autumn selling period has been encouraging.

The UK’s second-largest volume housebuilder is upbeat about trading despite the ongoing uncertainty in the wider economy.

The group said that although mortgage availability remains restricted, it has seen an improvement since its half year results.

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Taylor Wimpey’s Yorkshire division has opened a number of developments this year at Crown Gardens in Bradford, Regents Way in Wakefield, Foxfield Park in Wakefield and The Wickets in Upper Haugh.

It will soon open another development, Kensington Place in Allerton Bywater.

The new development bring the total number of sites throughout Yorkshire to 21, covering a number of major towns and cities including Sheffield, Leeds, Wakefield, York and Bradford.

Taylor Wimpey North Yorkshire recently opened Mallinson Park in Normanby, and a new development will open soon at High Farm, also in Normanby.

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The group’s chief executive Pete Redfern said: “This is not the time for big cyclical bets and we only want sites where we can add value.”

He said that the business is on target for 10,000 house sales this year after a good autumn selling season

The group, which also trades as George Wimpey and Bryant Homes, has a current order book of 6,265 homes.

This is up from 5,496 at the same stage last year.

Cancellation rates remain at low levels and sale prices have been stable since results in August, when the group announced a return to half-year profit.

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Analyst Richard Curr, at Prime Markets, said: “Recession, what recession? Since half year results in August, UK focused Taylor Wimpey has remained largely unaffected by the sovereign debt problems in Europe, and remains firmly on course to deliver on previous guidance.

“Added to that, the housebuilder sees a stable UK housing market and an increasing number of attractive opportunities in the land market, all of which are supported by substantial growth in the future reservations order book.”

Taylor Wimpey has focused on driving more value from the properties it builds.

It said this strategy means it is on track to deliver a double-digit percentage UK operating margin in 2012.

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The group, which sold its North American business earlier this year, reported an average private net reservation of 0.55 sales per outlet for the second half to date, compared with 0.47 in the same period last year.

Taylor Wimpey’s remarks echoed comments from smaller peer Redrow last week, which said reservations and prices are stable while underlying demand is set to increase despite tough macro conditions weighing on the sector.