Taylor Wimpey sees 'stability' in UK housing market Housebuilder's order book swells by almost 75%

Published 19th Jun 2009

Taylor Wimpey has reported seeing "stability" in the UK's housing market and said its order book has grown by almost 75% since the start of this year.

The housebuilder told the City this morning that the current level of customer interest means there is less chance of a "severe downside scenario".

"Our net private reservation rate remains at around 0.6 per site per week, with prices broadly flat and cancellation rates below the long-run average. While mortgage valuations and availability are still issues, there are signs that the situation is beginning to improve," said the company.

Although Taylor Wimpey also predicted that sales will slow down over the next few months - thanks to the tradional summer lull - shares in the company jumped 8% in early trading to 33.5p. Other housebuilders also rose as traders took confidence from the trading update.

Taylor Wimpey's UK order book currently stands at £971m, up from £562m at the start of the year. Orders began dropping sharply in 2007 and kept falling through 2008 as house prices slid and banks reined in their lending.

The company is currently operating from 50 fewer sales offices than at the start of 2009, having cut its building programme. It indicated today that it hopes to open more outlets in the autumn, in anticipation of an increase in potential buyers.

"We have been encouraged by the ongoing stability in the UK housing market, but remain cautious with regard to the prospects of the wider economy and in particular, the potential impact of rising unemployment," the housebuilder said.

Source: ' Guardian '

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