Housebuilder Taylor Wimpey has recorded strong customer confidence over the past year, as house sales rise.
In its latest statement, the firm insists that it has made a very good start to the year, and is encouraged by robust trading and levels of demand. UK housing market fundamentals remain strong, says the builder, with solid customer confidence.
Housebuilder Records Strong Customer Confidence as House Sales Rise
The property market is underpinned by a competitive mortgage market and low interest rates, reports Taylor Wimpey. It has seen customer interest remain high over the past year, with solid website visits and customers continuing to register interest in forthcoming developments and progress their home purchase plans.
Nevertheless, it has witnessed a softening in the prime central London market, despite the wider London market remaining stable, although house prices are steady and there are good levels of underlying demand.
With high customer confidence, Taylor Wimpey’s net private sales rate for the year to date has increased to a very strong 0.91 (up from 0.77 last year).
The firm is continuing to focus on building a strong order book. As of February, it was around 49% forward sold for private completions in 2017, with a total order book value of £1,978m. This represents 8,573 homes.
The housebuilder has commented on the Government’s release of its Housing White Paper earlier this month, which it claims recognises the importance of housing to the UK and the part all housebuilders can play in the economy.
Although it is awaiting further details of the measures included in the document, the firm welcomes the plans, which it believes are balanced and aim to sustainably increase the delivery of much needed homes.
Considering last year’s EU referendum, Taylor Wimpey insists that the early signs of stability and resilience of the market following the vote have continued and have reduced any short-term risks.
In line with its strategy, the firm will continue to closely monitor market risks, particularly around long-term mortgage costs. Nonetheless, it believes that a cautiously regulated market and low interest rate environment is likely to prolong the period of stability that we are seeing in the UK property market.
The housebuilder reports that it has a clear strategy and a strong focus on where it can add further value to the business. As such, it is confident that it can adapt to all market conditions from a position of strength and perform well.
The Chief Executive of the housebuilder, Pete Redfern, says: “In 2016, we delivered an excellent performance set against an uncertain political and economic environment that stabilised in the final quarter. The outlook for 2017 is for ongoing stability and incremental price growth, which is a healthy backdrop for our business and our customers.”