Upbeat Taylor Wimpey unaffected by EU referendum uncertainty

Taylor-WimpeyHousebuilder Taylor Wimpey has dismissed concerns about the impending EU referendum as it reported a higher order book for the first four months of the year.

In an upbeat trading statement issued this morning, the company said it was well-equipped to react to any potential changes in the market due to the referendum, citing a strong order book and the fact that most of its business was within the UK.

The board said: “The uncertainty surrounding the European Union referendum has not impacted trading to date, and underlying demand remains solid across all of our geographies.”

Concern about uncertainty surrounding the referendum has previously been cited as damaging investment in Scotland’s fragile property and construction sector by Grant Thornton and by the Federation of Master Builders (FMB) for the latest fall in output within the construction industry.

Taylor Wimpey said that its trading had remained “very positive” in the first four months of 2016. Customer demand is up 14 per cent compared to the same period last year, driving a strong sales rate. Average private net reservation rates increased to 0.80 sales per outlet per week for the year to date (2015 equivalent period: 0.76). Cancellation rates remained low at 11 per cent.

The total order book stands at 8,811 homes (compared to 8,200 this time last year), excluding legal completions to date. Value of the order book is up 22 per cent since the start of the year to £2,168m.

Build cost inflation has also come down as expected, the company said. It is anticipating underlying build cost increases of 3-4 per cent in 2016.

Chief executive Pete Redfern said: “Against the backdrop of a positive housing market, Taylor Wimpey is performing well, with increased customer demand for our homes and good access to mortgages driving strong sales rates. We remain committed to delivering sustainable value through the housing cycle, with a firm focus on continuous business improvement, including investment in our people, product and systems, and implementing and embedding our new customer service approach across the whole business. With a strong forward order book and high-quality landbank, we are well positioned for the remainder of the year and beyond.”

Share icon
Share this article: