Taylor Wimpey ‘encouraged’ by house price slowdown
Taylor Wimpey is ‘encouraged’ by the slower rate of house price increases witnessed by the UK in the latter of half of last year seeing this as sign of a healthy and sustainable market.
In a trading statement made to the London Stock Exchange, chief executive Pete Redfern said the ‘more balanced market conditions’ had created the basis for the firm’s confidence in developing and growing its business.
It begins the year with a record order book which has increased 12% in value from £1,246m in December 2013 to £1,397m as at 31 December last year. Driven largely by the strength of private reservations, the order book represents 6,601 homes.
“Taylor Wimpey starts the year in an excellent position and whilst the global economic outlook is uncertain, in the UK we have an environment of sensible mortgage regulation and a reduced risk of UK interest rate increases in the near term,” said Redfern.
The average selling price of its private completions increased by 11% to £234,000 up from £210,000 in 2013. Redfern put this increase down to a shift towards better quality locations and capturing market sales price increases.
Housing data released by Halifax last week revealed only a 0.3% rise in UK house prices which was the lowest quarterly growth rate since November 2012.
Martin Ellis, housing economist at Halifax, said the slowdown in the growth rate of house prices was due to a detoriation of housing affordability due to a lack of wage growth and previously spiraling house price inflation