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UK builder Taylor Wimpey reaffirms 2024 outlook as sales rate inches higher

Published 23/04/2024, 07:18
© Reuters. FILE PHOTO: A builder working for Taylor Wimpey builds a roof on an estate in Aylesbury, Britain, February 7, 2017.  REUTERS/Eddie Keogh/File Photo
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(Reuters) -British housebuilder Taylor Wimpey (LON:TW) posted on Tuesday a rise in sales rate during the key spring selling season and reiterated its annual outlook, even as affordability concerns and economic woes dent near-term recovery hopes in the sector.

The British housing market has seen green shoots of stability at the start of 2024 on easing mortgage rates after battling subdued demand for most of last year, but the delay in central bank's monetary policy loosening and incessant macro-economic woes have tempered hopes of a better-paced recovery.

"While we are mindful of ongoing market uncertainty and affordability challenges, it is pleasing to see continued market stability supported by good mortgage availability and sustained customer confidence," CEO Jennie Daly said in a trading statement.

Net private sales rate, as of April 21, came in at 0.73 units per outlet, better than the 0.67 homes logged in from the start of the year till Feb. 25.

The company, which also has a minor presence in Spain, reaffirmed its home-build targets of about 9,500-10,000 homes in Britain in 2024, excluding joint ventures. The midpoint of that range is about 7% lower than last year's 10,438 units.

© Reuters. FILE PHOTO: A builder working for Taylor Wimpey builds a roof on an estate in Aylesbury, Britain, February 7, 2017.  REUTERS/Eddie Keogh/File Photo

The High Wycombe, UK-based company said its order book stood at 2.09 billion pounds ($2.58 billion), as of April 21, compared with 2.38 billion pounds in the year-ago period.

($1 = 0.8107 pounds)

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