RE: Quality goods at discounted prices18 Jun 2020 10:59
Russ Mould, investment director at AJ Bell, said: “Fortune favours the brave and in time Taylor Wimpey’s plan to raise £500m for a land buying spree may look an inspired call. “Part of the reason house builders have been so profitable in recent years, alongside the Help to Buy scheme, strong supply and demand dynamics and the availability of cheap mortgages, is they acquired land cheaply in the wake of the financial crisis.
“Clearly management feel there is a finite window of opportunity which they intend to take full advantage of with these new funds. “On the negative side of the roster is the fact investors are being forced to stump up money for a business which already has a pretty strong balance sheet.”