Taylor Wimpey reports strong increase in selling prices in H1

UK-focused residential developer Taylor Wimpey said it saw a reduction in "market risk" in the first half as the housing market continued to strengthen.Sales rates and pricing were at the upper end of forecasts during the first six months of the year, showing the benefit of the traditionally strong spring selling season.Home completions totalled 5,766 during the period, up 11% year-on-year, with the average selling price rising to £206,000, from £188,000 the year before. Meanwhile, the operating profit margin rose to around 16%, from 13.1% the year before.Taylor Wimpey said it was confident of hitting full-year expectations and delivering on its medium-term targets.Demand has been underpinned by decent customer confidence, with increased employment security and a more affordable and accessible mortgage market, it said.The total order book, excluding completions to date and joint ventures, was £1.58bn as of June 29th, up from £1.26bn last year, and is said to be at "an optimal level".The company also welcomed "sensible measures", such as the new regulations following the Mortgage Market Review and the measures announced by the Bank of England in June, which work to reduce long-term risk and ensure stability. It said the measures were "positive" for the industry, lowering the risk of the market overheating."We have not experienced, nor do we anticipate, any significant adverse impact on our customers."The firm also said that the land market remained "balanced and disciplined" in the first half. While build costs have increased as expected, they are at manageable levels.In Spain, the housing market remains "challenging", although the wider market environment is now said to be stable. Home completions fell to 20 during the half, from 27 while selling prices increased to €254,000 from €216,000.The stock was down 0.5% at 116.5p in early trading on Monday.BC