Higher selling prices lift Taylor Wimpey H1 profit

Higher home completions and average selling prices helped to drive a jump in half-year profits at UK house-builder Taylor Wimpey. Profit before tax and exception items jumped 63.7% to £178.4m on an £18.2m rise in revenue to £1,190.1m against a year ago, as the group benefited from improved trading across all its regional markets. A total of 5,766 homes were completed in the six-month period, compared to 2,191 a year earlier. Of those, 4,755 were private completions, 940 were affordable and 71 were joint venture completions. The strength of the private completions drove the average selling price 10% higher from £188,000 to £206,000. "Particularly in the second quarter, we have seen greater balance between the regions, with increases in sales prices and sales rates outside of the strong London and south-east market," the FTSE 250-listed group said. The average selling price in its UK short-term owned and controlled land bank increased by 16% to £211,000 during the first half, driven by the quality of additions and the improvement in the housing market. The company said the market had returned to normal, with the period's net private sales rate rising from 0.67 to 0.71 year-on-year. The summer period is expected to be slower, with the overall annual sales rate expected to come in at around 0.70.The extension of the government's Help to Buy scheme to 2020 and action to curb irresponsible mortgage lending had helped to substantially reduce the market risk in the short-term, it said.Shares in the group had climbed 1.4% to 116.20p by 09:32.NR