Taylor Wimpey reports 'strong' sales as housing demand 'remains high'

Taylor Wimpey reports 'strong' sales as housing demand 'remains high'”

In the year to date the sales rate was 0.81, up from 0.75 last year, but over the last eight weeks the rates rate has been flat at 0.73.

It did, however, reiterate that build costs are expected to increase slightly - by around 3 to 4 per cent - this year, with the pressure coming from labour costs and a modest level of cost inflation in building materials.

Despite industry fears that this month's interest rate rise from 0.25 per cent to 0.5 per cent - the first for a decade - could add to Brexit uncertainty to put off buyers, Mr Redfern said the group had continued to see "stability in trading patterns".

Two of its rivals, Persimmon and Redrow, spooked the market last week and sent shares sliding after trading updates that seemed to suggest some reduction in sales volumes. The company also said it was fully sold up for the year.

It comes after shares in United Kingdom housebuilders came under pressure last week following recent gloomy reports from rivals and industry data pointing to slowing sales and prices.

Taylor Wimpey has added 13,700 plots to its short term landbank in the year to the end of October.

Taylor Wimpey said the Spanish housing market remains strong, with the order book in the country standing at 388 homes as of November 5, compared to 342 the same day past year. It expects the Spanish business to report growth in operating profit, having posted a figure of GBP20.6 million for 2016.

The company has reached agreements with freeholders to allow customers with 10-year doubling leases to convert to a structure that includes price increases in line with the retail price index (RPI).

"We continue to make good progress towards securing agreements with other freeholders to also enable the conversion of the remaining doubling ground rent leases", it said in a statement said.

The housebuilder said it expects to deliver full-year results in line with expectations and to deliver more growth next year. It said it expected net cash to hit £500m by the end of this year, up from £365m at the end of last year.

The FTSE 100 firm said the United Kingdom housing market was "positive" in the second half of 2017 and Central London was "stable", but flagged that it was aware of potential political and economic risks.

However, it believes it is well placed to manage any changes in market conditions with a "robust" balance sheet, a high quality landbank and a "strong" order book.

The update came soon after property website Rightmove said the average asking price for a house in the United Kingdom was down 0.8% on month in November, following the 1.1% increase in October.

Taylor Wimpey shares were ahead by 1¾p at 194½p in mid-morning trading.

Like this



14 November 2017
Trump asked Xi to resolve Ball arrest
Ball, Riley and Hill were taken to the police station in Hangzhou, where they were kept for a number of hours, according to ESPN . Trump arrived a day after the three players were arrested after allegedly shoplifting from a Louis Vuitton store in Hangzhou.

14 November 2017
British supermarket responds to comments on Muslim family appearing in Christmas advert
It shows a number of British families as they prepare for the not always straight-forward task of cooking a traditional Christmas dinner.

13 November 2017
Pollution: Delhi CM suggests closure of schools
Affluent residents and large private companies have been placing bulk orders for air purifiers and filtration masks. Government hospitals in the city, Jain said, were treating thousands of patients with respiratory ailments.

13 November 2017
Verizon, AT&T Announce Agreement for Hundreds of New Cell Towers
AT&T and Verizon have partnered with a third company to build hundreds of cell towers, Verizon announced today . The agreement could also add "significantly more" sites in coming years.

13 November 2017
Introducing Sydney's new Ferry McFerryface
But the Natural Environment Research Council decided not to use the name, instead choosing instead "Sir David Attenborough". But Minister for Transport and Infrastructure Andrew Constance said they wanted to avoid a double up.

13 November 2017
Texas Instruments Incorporated (TXN) SVP Bing Xie Sells 17500 Shares
The semiconductor company reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.12 by $0.14. The stock of Texas Instruments Incorporated (NASDAQ:TXN) earned "Mkt Perform" rating by Bernstein on Friday, December 18.

13 November 2017
A new Lord of the Rings TV series is coming from Amazon
Warner working with Amazon to develop a Lord of the Rings TV series. " The Lord of the Rings ", the celebrated fantasy book series by J.R.R.

13 November 2017
India asks Pakistan to end illegal occupation of PoK
At its second UPR in 2012, Pakistan received 167 recommendations, out of which it accepted 126, "noted" 34 and rejected seven.

13 November 2017
News conference to be held regarding Penn State deadly frat hazing case
The Pennsylvania district attorney filed new charges against fraternity brothers in the death of a Penn State pledge . The district attorney said the security video shows Piazza had 18 drinks in one hour and 22 minutes.

13 November 2017
The Weybosset Research & Management LLC cuts position of The TJX Cos. (TJX)
Cobblestone Cap Advisors Ltd Liability New York holds 0.89% of its portfolio in TJX Companies Inc (NYSE:TJX) for 94,717 shares. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link .