Business

Sales remain robust for Taylor Wimpey despite challenging year

Property Reporter
|
10th November 2020
construction 665

Volume housebuilder, Taylor Wimpey, has announced that it has made good progress in its second half, with the business set to deliver full-year 2020 results "towards the upper end of market expectations".

During the second half of its year to date, the firm has achieved a sales rate of 0.76 homes per outlet per week against 0.93 during the equivalent period last year. This is at 0.73 homes per outlet per week for the year to date.

They revealed that, on many sites, they were currently selling for completions in Q2 2021 and beyond, expecting rates to improve further as construction catches up with sales over the next few months.

It added that customer forward indicators and sales had remained robust, with the housebuilder’s current total order book representing 11,530 homes as of November 1 against 2019’s 10,486.

The order book’s value increased 11% year-on-year to £3 billion; Taylor Wimpey said the private average selling price here was ahead of 2019 levels. "We are working to transition to the next phase of Help to Buy with Homes England and therefore the order book and sales rate do not include reservations against this scheme," it said.

With the housing market allowed to continue operation during the England lockdown, Taylor Wimpey said early indicators suggested customers wished to continue to progress their purchases.

Pete Redfern, Taylor Wimpey’s CEO, said: "The trading backdrop remains resilient and the quick recovery of the housing market is testament to the underlying strength of demand and supportive lending backdrop.

"We have made good progress in the second half of the year to date, maintaining a robust sales rate and building a strong forward order book.

"Looking ahead, we are on track to deliver full-year 2020 results towards the upper end of market expectations and with strong operational momentum and positive forward indicators, our confidence in 2021 has increased. As a result, assuming the market remains broadly stable, we expect to deliver 2021 operating profit materially above the top end of the current consensus range."

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