Taylor Wimpey sees step change in housing market

In a trading up date for calendar 2013 Taylor Wimpey said that the year represented a turnaround in the housing market, with solid consumer confidence underpinned by government measures such as Help to Buy.

Total home completions reached 11,696 (including joint venture) up from 10,886 in 2012. More than 2,900 of its buyers used the Help to Buy scheme, accounting for roughly a quarter of sales.

Average selling prices on private completions increased by 7% to £210,000 (2012: £197,000). Overall average selling price increased by 6% from £181,000 to £191,000.

Taylor Wimpey approved the purchase of 15,667 new plots on 105 new sites during 2013. Total strategic landbank is now at a record level of more than 110,000 plots.

The company starts 2014 with 314 live outlets, down from 327 a year ago because, as the market picks up, the For Sale signs come down more quickly. Total outlets are expected to ‘modestly increase’ through the year.

Chief executive Pete Redfern said: "We saw a meaningful step change in market conditions in 2013, after several years of a declining or flat market. In these improving conditions, Taylor Wimpey is benefitting from the discipline that has been instilled over the past five years with a clear focus on margin as the best measure of the quality of our business. Focussing on the long term health of the business allows us to take the right decisions today to deliver much needed homes all the way through the housing cycle."

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