Taylor Wimpey has noted an uptick in customer demand as mortgage rates decrease and affordability issues lessen, following a challenging start to the year.
The housebuilder confirmed it is on course to meet º£½ÇÊÓƵ volume targets of between 9,500 and 10,000 homes, with operating profit aligning with current market predictions, as reported by .
In the second half so far, its sales rate the average number of homes sold per week by a developer increased to 0.70 homes per week, a rise from 0.51 in 2023, while the cancellation rate dropped to 17 per cent from 21 per cent last year.
For the first three quarters of the year, its sales rate was 0.73, up from 0.63 in 2023, and the cancellation rate fell to 15 per cent from 18 per cent in 2023.
Since the Bank of England's initial base interest cut in July, which subsequently reduced mortgage costs, there has been a surge in demand for houses in the º£½ÇÊÓƵ.
As of early November, Taylor Wimpey's total order book stood at £2.2bn, an increase from £1.9bn in 2023, representing 7,716 homes, up from 7,042 in 2023.
Taylor Wimpey buys up land ahead of planning reform
Taylor Wimpey has expressed its support for the Government's strategy to tackle the º£½ÇÊÓƵ's housing shortage and stated it remains "confident in the fundamentals of the market".
The company has been proactive in the land market, approving 11,000 plots during the period, with a strategic land pipeline of 136,000 potential plots.
The company mentioned it has "excellent visibility" of its land pipeline, which will "deliver growth from 2025, assuming a supportive market".
"We continue to leverage our strategic land position with proactive applications in the system and additional applications prepared if we see the proposed National Planning Policy Framework changes adopted in the coming months," they commented.
‘Well positioned for growth’
Speaking about the company's robust footing, Chief Executive Jennie Daly stated: "We're pleased with the progress and performance of our business in the second half to date. Our teams have continued to work extremely hard on the ground, supporting customers through their buying journey and delivering an improved sales rate thanks to the quality of our sites and locations, and our focus on operational excellence."
She also said, "Underpinned by a strong balance sheet, well-located landbank and highly experienced teams, we are well positioned for growth from 2025, assuming supportive market conditions,".
Industry expert Anthony Codling of RBC Capital Markets weighed in, noting: "Taylor Wimpey is performing well in a challenging market... operationally Taylor Wimpey is lean and agile, unlike some of its peers there was no change in guidance because of recent moves in National Insurance or build costs."
"Looking ahead Taylor Wimpey will enter 2025 with a strong orderbook and with its skills and tenacity in the strategic land market it is well-placed to take advantage of Labour's reform of the planning system."
"The recent falls in the share price seem to us at odds with the underlying performance and positioning of the Group."
