Taylor Wimpey finds uncertainty as consumer confidence stays low

The group, which has a number of sites across Yorkshire, said slowly improving mortgage availability had helped it to achieve 83 per cent of its targeted full-year sales already.

Taylor Wimpey, which is the first big housebuilder to update investors since the General Election and emergency Budget, said sales were dented in the second quarter as consumers delayed moving house around the date of the vote.

York-based housebuilder Persimmon is due to update the market next Tuesday.

But it said sales in recent weeks have strengthened, and private sales for the first six months of the year are broadly level with the same period in 2009, at 0.58 sales per site per week, compared with 0.61 a year ago.

Taylor Wimpey said it expects to complete 4,650 homes in the first half at an average selling price of 167,000, compared with 4,702 homes at an average selling price of 153,000 in the same period last year. But Taylor Wimpey warned low availability of mortgages and broader economic uncertainty was putting a dent in short-term confidence.

"With ongoing political and economic uncertainty, we continue to run the business on a cautious basis, with selective land investment and an ongoing focus on costs and cash," said the group.

House prices fell 0.4 per cent in May according to mortgage lender Halifax, while Nationwide reported a 0.5 per cent rise for the month, half the rate of the previous two months.

Taylor Wimpey raised concern over reforms to the planning system, which are aimed at giving greater power to the local areas.

Some local authorities have already put planning decisions on hold until there is greater certainty from the coalition government.

"In the medium-term, we remain concerned that the shortage of consented land will artificially constrain the recovery in industry volumes and this will be exacerbated by the impact and timing of changes in planning permission," added the group.

Analysts at Panmure Gordon said: "Taylor Wimpey's trading statement is broadly in line with expectations and should lend support to a sector which has been under significant pressure."