Taylor Wimpey quells fears of weak pound cost rises

Aaron Morby 8 years ago
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House builder Taylor Wimpey is forecasting stable building cost inflation next year of around 3-4%.

Taylor Wimpey chief says sales rates have remained strong in Autumn selling season
Taylor Wimpey chief says sales rates have remained strong in Autumn selling season

The firm said skilled labour shortages would continue to impact the industry as house builders raised volumes of new homes.

But the house builder played down fears among cost consultants that the weaker pound could drive up input costs from more expensive imported building products.

In an upbeat trading statement this morning, chief executive Pete Redfern said: “While we expect to see some impact on input prices from the moving exchange rate, we do not expect this to be significant due to the low level of direct imports.

“We expect underlying build cost increases during 2017 to be at a similar level to 2016.”

He added: “Trading during the second half of 2016 and into the autumn selling season has been strong, with good levels of customer confidence and demand underpinned by a wide range of mortgage products.

“While there remains some uncertainty following the UK’s vote to leave the European Union, we are encouraged to see that the housing market has remained robust and trading has remained resilient.

“We have a strong order book position for 2016 and going into 2017, and we will maintain our focus on delivering our medium term targets.”

He added: “While the wider London market remains positive and in line with the rest of the UK, as previously guided the central London market has slowed during 2016.

“In Zones 1 and 2, prices have softened slightly at the upper end during the second half of the year, however there remain high levels of demand in this market.”

Taylor Wimpey has already forward sold nearly a quarter of expected 2017 private completions.

The current total order book, excluding joint ventures, is ahead of last year representing 8,981 homes (week ended 1 November 2015: 8,529), standing at £2.3bn (2015: £2.1 bn). 

 

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