26th Apr 2022 09:22
(Alliance News) - Housebuilder Taylor Wimpey PLC on Tuesday said it expects house price growth to outpace rising labour and material costs.
As of April 17, Taylor Wimpey's total order book value stood at GBP2.97 billion, up 5.8% from GBP2.81 billion a year ago.
"The UK housing market remains healthy, underpinned by continued strong customer demand, low interest rates and good mortgage availability," the Buckinghamshire-based firm said.
The net private sales rate for the year up to April 17 was 0.96 compared to 1.00 a year ago, the firm explained. The cancellation rate remained unchanged at 14%.
"We continue to see healthy levels of house price growth reflecting the strength of the market, that are offsetting labour and material cost inflation," Taylor Wimpey said.
Trading is in line with expectations, the firm added.
"Whilst interest rates have risen, they remain at historically low levels and, with good availability of competitively priced mortgages, we are experiencing strong levels of customer interest," it explained.
The firm said it has provided about GBP245 million for fire safety remediation works for the UK-government building safety pledge.
The Building Safety pledge was established following the Grenfell Tower fire in 2017 to ensure the safety of highrise buildings, by removing combustible materials such as cladding. Housebuilders who sign are committed to following new guidelines for work on potentially dangerous cladding on high-rise buildings between 36 feet and 59 feet.
As already announced, Chief Executive Pete Redfern leaves Taylor Wimpey on Tuesday after 15 years in his role. He is replaced by Jennie Daly, former group operations director.
During the year, the company aims to buy back GBP150 million shares. It has repurchased shares worth around GBP75 million so far, it explained.
Taylor Wimpey shares were 3.1% higher at 132.02 pence each in London on Tuesday morning, the best large-cap performer.
By Tom Budszus; [email protected]
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