Taylor Wimpey on track in stable market

Home builder Taylor Wimpey said the UK housing market remained stable and it was on track to meet full year expectations.

The firm said sales rates since the start of July had been similar to the equivalent period of 2011, with an average net private reservation rate of 0.57 sales per outlet per week in 2012 to date.

This compared with the 2011 equivalent period when the company managed 0.56 sales per outlet per week.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Cancellation rates remained below the long term average at 15.3% for the year to date, it added.

"Maximising the value achieved from each home completion remains our top priority and we are now fully sold for our targeted 2012 completions and are building our order book for 2013 completions," the firm said in a statement.

"The current order book for future completions is £1.11bn (6th November 2011: £1.02bn), with the growth being driven by the private order book."

The firm expects net debt at the end of 2012 to be in line with the prior year at around £116.9m.

It bought back a further £9.1m of 10.375% senior notes due 2015 in the second half of 2012 to date, reducing the amount outstanding to £149.9m.

The company has also signed an agreement with Prudential/M&G UK Companies Financing Fund LP on 9th November to extend its existing £100m term loan, which was originally due to mature in June 2015.

The Government's NewBuy scheme had generated strong interest amongst Taylor Wimpey's customers since its launch in March 2012, it added.

NewBuy is the Government backed 'mortgage indemnity' scheme that aims to help people with smaller deposits buy a new build home.

The firm said it had taken 467 net reservations under the scheme and its recently launched equivalent in Scotland "MI New Home".