LONDON (Alliance News) - Housebuilder Taylor Wimpey PLC Thursday said it has seen a "healthy" level of demand for its properties in the UK with sales rates in the second half ahead of the equivalent period in 2012.
In an interim management statement for July 1 to date, the company recorded an average net private reservation rate of 0.65 sales per outlet per week up from 0.57 in 2012, while cancellation rates dipped to 13% from 15% a year earlier.
Overall, Taylor Wimpey said it had seen some selling price increases in line with general inflation.
The firm also is building its order book for 2014 with over 30% forward sold for 2014 completions. The current total order book represents 7,557 homes worth GBP1.5 billion compared with 6,662 valued at GBP1.1 billion in the week ended 11 November 2012.
The housebuilder said it had been encouraged by the UK government's flagship housing programme Help to Buy, with "customers from Edinburgh to Exeter using the scheme to get onto or move up the housing ladder."
The first phase of the Help to Buy scheme in England started in April, when buyers of newly built homes were eligible for a 20% equity loan from the government on top of their 5% deposit. A similar scheme has been launched in Scotland.
Despite a more positive market backdrop in Spain, Taylor Wimpey said consumer confidence remains subdued on the whole. However, it has seen an increase in sales on new sites acquired during 2013 and an increase in the order book.
These sites are anticipated to contribute positively to 2014 performance, it said.
Financially the company said it expected net debt at the end of 2013 to be broadly in line with the prior year at GBP59 million at the end of December, subject to the timing of land payments.
In early trading Thursday, Taylor Wimpey shares were quoted up 5.4% at 109.00 pence.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Taylor Wimpey (TW.)
