Taylor Wimpey reports solid result but cautions on South East market
15 November 2018National housebuilder Taylor Wimpey has reported “solid” trading conditions but warned that heightened political and economic uncertainty have led to some signs of customer caution, particularly in the South East.
As a result, it said it expected next year’s housing volumes to be broadly flat in current market conditions.
Taylor Wimpey said the UK housing market has remained stable through the second half of 2018, despite the wider political and economic uncertainty.
Customer demand for new build homes continues to be robust, underpinned by low interest rates, a wide choice of mortgage deals and the Government’s Help to Buy scheme.
The company’s current total order book, excluding joint ventures, represents 9,783 homes, which is 12% above last year (2017 equivalent period: 8,751). This order book stands at around £2.4bn (2017 equivalent period: around £2.2bn), an increase of 9%.
Underlying prices in the period, and in the order book, remain in line with the first half of the year. Build costs are expected to increase 3-4% this year, as the housebuilder had previously indicated.
Taylor Wimpey expects to end 2018 with a net cash balance of around £600m (31 December 2017: £511.8m). Subject to shareholder approval, it will seek to return £600m of total dividend to shareholders in 2019, a 20% increase on 2018.
