The firm revealed latest housing completions figures in a trading update for the City ahead of its interim results.

Despite statements from chief executive Pete Redfern that Britain’s second biggest house builder would respond to rising demand, completions crept up to 5,192 homes from 5,083 in the first half of 2012.

The average selling price on private completions, which reached 4,229, increased by 8% to £205,000 due to the improving market and better site locations.

Taylor Wimpey said operating margins were up from 11% to 13% in the period as market improvements kicked in.

The Government’s Help to Buy initiative has helped to deliver 1,000 reservations to date with a further 232 currently going through the qualification process with the Home Buy agents.

Redfern said: “During the first half of 2013, we have been operating in a UK housing market that has shown measurable improvement for the first time since the downturn of 2007/2008.

“We consider this to be down to a general economic improvement, better mortgage availability and the direct impact of the Government schemes.

“In this improved environment, we remain committed to our strategy which we believe will deliver both improved and more sustainable returns for our shareholders and will make a significant contribution to local communities and help meet the housing need.”