Taylor Wimpey says housing market stable, but reveals buyer caution
The housebuilder has seen “some signs of customer caution”, particularly in the south east of England
Housebuilding giant Taylor Wimpey has flagged signs of homebuyer caution as Brexit uncertainty takes its toll.
The group said although indicators for sales are solid, it has seen “some signs of customer caution”, particularly in the south east of England due to “heightened political and economic uncertainty”.
Taylor Wimpey said it is on track to deliver full-year results in line with expectations, but expects sales by volume to be broadly flat next year.
Shares in the group fell 2%.
Despite the impact of Brexit worries, it insisted the UK housing market has remained stable in the second half of the year due to low interest rates, different mortgage deals and the Government’s Help to Buy scheme.
In its trading update, Taylor said its sales rate for the year to date was flat at 0.81 sales per outlet a week compared with the same period a year earlier.
The company said all three divisions experienced good demand.
For the second half of the 2018, the sales rate was 0.77 per outlet a week, compared with 0.71 in the same period last year.
The company’s current order book consists of 9,783 homes, which is 12% higher than last year.
The order book stands at about £2.4 billion, up 9% from last year.
Taylor Wimpey said this is at the upper end of its expectations and it anticipates this will reduce towards the end of the year as more homes are built.