Taylor Wimpey sees gains spreading across the UK

Taylor Wimpey’s sales were at the upper end of expectations ahead of its first-half results later this month

The boss of one of the UK’s biggest housebuilders said that buoyant conditions in London and the South-east are spreading out across the rest of country as he reported a jump in total orders at Taylor Wimpey on Monday.

But Pete Redfern, the builder’s chief executive, also said that prospective housebuyers were more aware of the risks of taking on large debts and were exercising more caution this time around.

“Consumers are more aware of the risks now than in the 1980s and 1990s when they rushed into it fairly blindly,” he said. “They are being less gung-ho than in previous cycles.”

 He also backed the Bank of England’s measures to prevent the housing market from overheating. Mr Redfern welcomed the “sensible” approach by the Bank’s Governor, Mark Carney, to managing the market through caps on mortgages at more than four and a half times household income.

“It’s not had a huge impact,” he said. “It takes slightly longer to get a mortgage for customers as they are going through more checks but we’ve been pretty disciplined.”

He added that the Government’s Help to Buy scheme, which aided the purchase of 42 per cent of the company’s private homes in the first half, had buoyed figures but it must be watched closely.

“Any incentives need to be carefully managed and hopefully it will be tapered off over time,” he said.

Taylor Wimpey’s sales were at the upper end of expectations ahead of its first-half results later this month.

The company expects to fatten margins compared with the same period last year, while the average selling price of completed houses increased 9.6 per cent to £206,000 from £188,000 in 2013.

Total orders stand at £1.58bn as of 29 June, well ahead of last year’s £1.26bn. The business counts 10 per cent of its business within the M25 and 25 per cent across the Home Counties.

Analysts at its house broker Jefferies, inspired by the World Cup, said: “At half time there is no nervousness or need for a strong pep talk from team boss Redfern.

“His players are following the game plan and leaving little to chance, having set the bar high with respect to value vs volume, they have left Persimmon with a lot to do in the second half and we suspect that nerves on the Barratt bench are high.

“We expect significant value growth in the coming seasons as the heads on those legs mature and as the investments in strategic land start to really make their presence felt on the pitch.”

Analysts at Deutsche Bank said the trading update was “reassuring” and forecast Taylor Wimpey’s acquisition of premium land would begin to pay off in the next two years.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Recruitment Genius: Technical Report Writer

£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

MBDA UK Ltd: Indirect Procurement Category Manager

Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee
World War Z author Max Brooks honours WW1's Harlem Hellfighters in new graphic novel

Max Brooks honours Harlem Hellfighters

The author talks about race, legacy and his Will Smith film option to Tim Walker
Why the league system no longer measures up

League system no longer measures up

Jon Coles, former head of standards at the Department of Education, used to be in charge of school performance rankings. He explains how he would reform the system
Valentine's Day cards: 5 best online card shops

Don't leave it to the petrol station: The best online card shops for Valentine's Day

Can't find a card you like on the high street? Try one of these sites for individual, personalised options, whatever your taste
Diego Costa: Devil in blue who upsets defences is a reminder of what Liverpool have lost

Devil in blue Costa is a reminder of what Liverpool have lost

The Reds are desperately missing Luis Suarez, says Ian Herbert