Homebuyers' caution prompts autumn sales slowdown for Taylor

The group said stronger sales over the summer were offset by an autumn slowdown, as homebuyers put off buying before the Government announced public sector spending cuts in October.

The company has seen an improvement in sales since the announcement, but said that mortgage availability remains a constraint on industry volumes.

The group, which has 20 sites in Yorkshire, is to open four new sites in the region over the coming months.

The first two are Crest Park and Crown Gardens, both in Bradford, which are due to open later this month.

Further developments are planned in Normanby and Wakefield.

The group has developments in Sheffield, Leeds, Wakefield, Bradford, York, Thirsk and Selby, offering a wide choice of two, three, four and five-bedroom houses as well as apartments.

Chief executive Pete Redfern said: "We expect to enter 2011 with a solid order book and we remain focused on our strategy of maximising margins and returns rather than looking to accelerate volume growth."

A sharp drop in mortgage availability from banks rebuilding their balance sheets has hit demand for homes, with analysts expecting house prices to fall during the remainder of 2010 and into 2011.

Taylor Wimpey also announced progress in discussions with its banks over the refinancing of debt facilities.

It has agreed the terms of a revised 950m credit facility and a new set of covenants, which removes a number of operational restrictions and will increase flexibility over future operational decisions.

The second stage of the refinancing process has still to be completed, but Taylor Wimpey said it expects the process to be finished by the end of the first quarter of next year.

The new bank facility is conditional on it raising another 350m in debt from investors.

Taylor Wimpey said its US business benefited from more stable conditions in the autumn as homes become increasingly affordable after months of falling prices.

But Mr Redfern reiterated that the company expects to sell its US and Canadian operations in the long term.

"We don't expect to be long term holders of the North American business, but there's not about to be any imminent change," he said.

Taylor Wimpey currently has net debt of 720m, down from 860m a year ago.

Analysts' forecasts for Taylor Wimpey's 2010 full year results range from a loss of 10m to a pre-tax profit of 55m, with the consensus at around 23m, the company said.