Taylor Wimpey sees strong demand for housing

Taylor Wimpey said the housing market is underpinned by a competitive mortgage market and low interest rates

The group said UK housing market fundamentals remain good with strong customer confidence in its core geographies and the market is underpinned by a competitive mortgage market and low interest rates.

The group reported a 22 per cent rise in pre-tax profits to £733m in the year to December 31, while revenue rose 17 per cent to £3.7bn.

Taylor Wimpey completed a total of 14,112 homes in the year, an increase of 5 per cent.

The company's total average selling price increased by 10.9 per cent to £255,000, helping boost revenue.

In Yorkshire the average selling price rose to £231,000, reflecting positive market fundamentals and better quality locations and homes.

Taylor Wimpey's group finance director Ryan Mangold said: "Yorkshire remains a very positive place to operate. We sold just over 1,700 homes in total in Yorkshire in 2016."

He added that the group has benefited from Brexit in that the Bank of England has cut rates to historic lows.

"The rise in interest rates has been postponed for a few years, which is good news for our customers," he said.

"People need accommodation and they can save themselves £300 to £350 a month by buying rather than renting."

The company added that while it saw a small increase in the average cancellation rate immediately following the EU referendum, the number was low compared with long term historic trends and quickly returned to pre-referendum levels.

Taylor Wimpey said it backs Government plans to ramp up housebuilding.

George Salmon, equity analyst at Hargreaves Lansdown, said: "After strong numbers from its peers in the sector, it is not at all surprising that Taylor Wimpey has delivered a good set of results. What is of interest though, is the detail it has provided on its markets.

"While the group acknowledges the importance of managing the cycle in such an economically sensitive industry, it is confident enough to say that much of the risk and uncertainty around the Brexit vote is disappearing into the rear view mirror."