Taylor Wimpey posts upbeat trading statement citing robust customer demand

Demand has particularly been supported by healthy employment trends, a competitive mortgage market and the Government's help-to-buy scheme

Chief executive Pete Redfern said that the group was on track to meet its full-year expectations (Reuters)

Taylor Wimpey has delivered a confident trading statement for the second half of its financial year, citing “robust” customer demand and a “positive” UK housing market.

The house builder said on Monday that while it remains alert to potential political and economic risks, demand for new housing is still high across the UK and market conditions are favourable.

Chief executive Pete Redfern said that the group was on track to meet its full-year expectations and would likely deliver further growth and performance improvements next year.

“With a strong balance sheet in place and a high-quality landbank, our business is very well positioned to deliver sustainable growth,” he said.

Taylor Wimpey said that customer demand in recent months had particularly been supported by healthy employment trends, a competitive mortgage market and the Government's help-to-buy scheme.

It said that sales rates for 2017 so far were strong, at 0.81 sales per outlet per week, compared to 0.75 during the same period last year. Cancellation rates for the year are flat on 2016 levels, at 13 per cent.

It did, however, reiterate that build costs are expected to increase slightly – by around 3 to 4 per cent – this year, with the pressure coming from labour costs and a modest level of cost inflation in building materials.

It said that net cash at the end of December is expected to be around £500m after dividend payments of around £450m to shareholders.