UPDATE 1-UK support for home buyers helps builder Taylor Wimpey

LONDON, Nov 14 (Reuters) - British housebuilder TaylorWimpey has raised its profit margin forecast for 2014 andexpects profitability will return to long-run levels the yearafter, helped by government schemes to support home buyers.

The company, which like rivals saw profitability slideduring a long and deep recession, said on Thursday its 2014operating profit margin could improve by 200-300 basis points,up from a previous forecast rise of 100-200 basis points.

In its latest results for the 2012 financial year, TaylorWimpey reported a margin of 11.5 percent and analysts expect itto post a 2013 margin of 13.5 percent. The raised forecastsindicates a 2014 margin of 15.5-16.5 percent.

"17 percent is what we would see as a long run norm, wherethe business has probably recovered from the market conditionswe've been through ... We'd expect to be at that 17 percent normin 2015," Chief Executive Pete Redfern told Reuters.

"By saying (the 2014 forecast) this early in the reportingcycle, we're giving people a sense of confidence," he said.

Taylor Wimpey and other housebuilders have been bigbeneficiaries of government schemes to help Britons purchasehomes with deposits as small as five percent and have seen theirprofits also improve as they build on land that they snapped upcheaply during the recession.

Taylor Wimpey's comments echo that of rival Persimmon, which hit its margin targets of 15-17 percent more thana year earlier than expected.

At 1335 GMT shares in Taylor Wimpey, which have risen 76percent over the past year, were up 3.5 percent at 107 pence -one of the biggest rises on the midcap FTSE 250 index.

Numis Securities analysts called the company's results "asolid update", and said they expected Taylor Wimpey to returncash to shareholders at its full-year results next year.

Redfern said he would set out a capital return plan nextyear, but added he would not explicitly state when those capitalreturns would start.

The company said it had sold off all the homes it wasbuilding this year, and had so far sold 30 percent of the homesit will be building next year. Its current total order bookcomprises of 7,557 homes with a value of 1.5 billion pounds($2.4 billion).