UK markets closed
  • FTSE 100

    7,044.03
    -266.34 (-3.64%)
     
  • FTSE 250

    22,537.89
    -742.07 (-3.19%)
     
  • AIM

    1,181.62
    -22.34 (-1.86%)
     
  • GBP/EUR

    1.1776
    -0.0103 (-0.87%)
     
  • GBP/USD

    1.3338
    +0.0018 (+0.14%)
     
  • BTC-GBP

    40,707.57
    -3,470.05 (-7.85%)
     
  • CMC Crypto 200

    1,365.60
    -89.82 (-6.17%)
     
  • S&P 500

    4,594.62
    -106.84 (-2.27%)
     
  • DOW

    34,899.34
    -905.04 (-2.53%)
     
  • CRUDE OIL

    68.15
    -10.24 (-13.06%)
     
  • GOLD FUTURES

    1,785.50
    +1.20 (+0.07%)
     
  • NIKKEI 225

    28,751.62
    -747.66 (-2.53%)
     
  • HANG SENG

    24,080.52
    -659.64 (-2.67%)
     
  • DAX

    15,257.04
    -660.94 (-4.15%)
     
  • CAC 40

    6,739.73
    -336.14 (-4.75%)
     

Taylor Wimpey passes rising costs on to house buyers

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
Prices of building materials have shot up in recent months (Nick Potts/PA) (PA Archive)
Prices of building materials have shot up in recent months (Nick Potts/PA) (PA Archive)

Taylor Wimpey has said it has been able to pass on all the soaring costs from squeezed supply chains to its customers as house prices increase.

The housebuilder indicated its business has begun to return to normal pre-pandemic levels, with sales from its outlets being comparable to 2019 levels.

In the second half of the year so far, it has sold 0.91 homes per outlet, compared to 0.93 two years ago and 0.76 in 2020.

Cancellation rates, which hit 21% a year ago, have also returned to a more normal 14%.

Chief executive ​​Pete Redfern said: “We are pleased with performance in the second half to date, and remain on track to deliver full-year 2021 results in line with previous guidance.

“We have been building a strong forward order book for 2022 and continue to see good demand for our homes, supported by a positive market backdrop.”

We continue to see house price inflation fully offsetting build cost inflation

Pete Redfern, Taylor Wimpey

This backdrop has allowed house prices to increase at least as fast as the cost of building the homes, he added.

The housebuilding industry has been under pressure from price rises and shortages of materials, as well as a shortage of haulage drivers.

However, Taylor Wimpey said there has been an “easing in certain areas” and it expects conditions to gradually improve.

“Despite well-publicised industry supply chain pressures, we are managing our supply chain effectively and are benefiting from our scale and strong partner relationships,” Mr Redfern said.

“We continue to see house price inflation fully offsetting build cost inflation.

“Looking ahead, market conditions remain supportive, and with the benefit of our strong land position we are well placed to deliver against our medium-term targets.”

The business said it is on track to deliver financial results in line with previous guidance, and will ramp up housebuilding in 2023.

Shares remained flat in London on Thursday morning.

Read More

New Norton Motorcycles HQ opens

Burberry speeds up high-spending store rollout as profits jump

Heathrow passenger numbers improve for sixth consecutive month

B&M ‘fully stocked’ for Christmas period after securing early deliveries

Legal action considered after betting offers sent to recovering gambling addicts

WH Smith hails ‘good start’ and eyes return to profit next year

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting