* Taylor Wimpey's 2021 UK home completions up 47%
* Shares rise nearly 2% in morning trade
* Sees annual results in line with expectations
(Adds analyst comment, share movement)
By Aby Jose Koilparambil
Jan 17 (Reuters) - Taylor Wimpey, the UK's
third-largest housebuilder, on Monday joined bigger rival
Persimmon in highlighting sustained demand in the
housing market, and said it was planning to buy back shares.
Cheap loans and a pandemic-driven preference for larger
homes among buyers have helped housebuilders project a brighter
outlook, while pushing house prices to record highs and helping
cushion the impact of higher building costs.
FTSE 100-listed Taylor Wimpey said it expects annual
financial results in line with its expectations and has a strong
order book for 2022. Its shares rose nearly 2% in morning trade.
The High Wycombe, England-based firm, which also has a
presence in Spain, said total UK home completions surged 47% to
14,087 units in 2021.
The company said it was in talks with building owners to
undertake cladding-related work at some properties. Shares in UK
homebuilders plunged last week when Britain ordered firms to pay
around $5.4 billion to help remove dangerous cladding from
buildings.
"Whether these results can result in a sustained share price
recovery for Taylor Wimpey, which suffered a sharp sell-off
after the cladding announcement, will depend on whether it can
continue to offset rising costs and maintain demand," said Adam
Vettese, an analyst at investment platform eToro.
Taylor Wimpey, which has been more active than other
housebuilders in buying land during the pandemic, said it would
reveal how much it made in returns for 2021 in March.
The company added that its intention was to return excess
cash to shareholders through a share buyback.
Britain's No. 2 homebuilder Persimmon last week forecast
higher profit margins for fiscal 2021, while smaller firms MJ
Gleeson and Vistry reported healthy trading on
robust demand. Countryside Properties unexpectedly
reported a weak quarter.
($1 = 0.7314 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Sherry Jacob-Phillips and Ed Osmond)