Housebuilder says market is stable despite euro crisis

Sales at housebuilder Taylor Wimpey have hit expectations in the last four months despite deepening concerns over the health of the wider economy, the firm said today.

In its interim management statement, Taylor Wimpey said sales rates per site per week had reached 0.55, compared with 0.47 in the same period last year, and that “housing market conditions in the UK have remained robust despite the ongoing uncertainty in the wider economy.”

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It said cancellation rates remained “low” and prices “stable”, leaving it on course to hit expectations of a double-digit operating profit margin for 2012. The firm is selling homes from 307 outlets, compared with 283 at the same time last year, and is on course to sell 6,285 homes, up 14% on 2010.

The firm said it has bought 36 sites since half year results in July, totalling 3,800 plots.

However, the group said it was keeping an eye on whether further weakness in the wider economy starts to impact upon the housing market. It said: “Although we continue to monitor the uncertainty in the wider economy, conditions within the UK housing market remain stable.”

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