UK Markets closed

Taylor Wimpey shrugs off supply chain concerns on upbeat home prices

·1-min read
FILE PHOTO: Taylor Wimpey site in St. Albans

(Reuters) -British homebuilder Taylor Wimpey Plc joined bigger rivals on Thursday in underscoring strong demand, shrugging off supply chain concerns, as robust housing prices offset rise in construction costs.

Cheap mortgages have underpinned the UK housing sector after a tax break introduced to prop up purchases was phased out in September, while firm home prices have helped the builders to counter cost pressures from supply chain disruptions, fuelled partly by Brexit and the pandemic.

British house prices rose for a fourth month running in October in the latest sign of strong momentum in the housing market, mortgage lender Halifax said.

"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," Chief Executive Office Pete Redfern said in a statement.

Top two British homebuilders Barratt Developments Plc and Persimmon Plc have forecast strong demand to sustain and stuck to their annual projections for homes completed in spite of the persistent supply chain woes.

Taylor Wimpey, the country's third-largest housebuilder, said its current total order book, excluding joint ventures, was about 2.8 billion pounds ($3.79 billion) as of Nov. 8, compared with about 3 billion pounds in the year-ago period boosted by government support measures and 2.7 billion pounds in 2019.

The High Wycombe-based company, which also has a small presence in Spain, reiterated its annual operating profit outlook of about 820 million pounds, with the target of homes completed in the UK, excluding joint ventures, expected to be at the upper end of outlook range of 13,200 to 14,000 units.

($1 = 0.7389 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich)

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