Taylor Wimpey reports housing boost

Housebuilder Taylor Wimpey will report increasing profit for the first six months of the year after what it described as a strong performance in a trading update today.

The firm said operating profits for the six months to 30 June would be above 13% compared to 11.2% in the period last year, following signs of “significant improvement” in the housing market.

The number of sales per outlet per week rose from 0.6 last year to 0.67 this, with the average private sale price increasing by 8%. The firm sold 5,192 homes in the period, up 2% on last year.

It added that the improving market, backed by government measures such as the Help to Buy scheme, meant it anticipated being able to write back of some of its previous impairments against UK inventory, made where land fell in value in the recession, as an exceptional gain.

Pete Redfern, chief executive, said: “We have welcomed signs of significant improvement in the housing market in the first six months of 2013 where we have seen increased consumer confidence, underpinned by both generally improved access to and affordability of mortgage finance and by the recent Government measures. This has enabled us to continue our investment in local communities across the UK and play a leading role in the creation of new homes, employment opportunities and infrastructure.”