House builder Taylor Wimpey brought some much needed positivity to its sector on Monday after it announced its group full year operating profit should rise more than 40%.
After another difficult year for the construction and property markets, Taylor Wimpey told the markest it expects its net debt to also come in below expectations.
The builder, which seriously struggled in 2009 due to its massive debts, said it had been helped by a number of major lenders reducing their mortgage rates due to the Bank of England’s £80 billion Funding for Lending scheme (FLS).
And despite mortgage availability still being restricted, the company is seeing major lenders beginning to reduce their rates.
House prices across the UK remained flat in 2012, but Taylor Wimpey managed to increase its average selling prices on its private completions by 6% to £197,000.
Home completions also increased 7% to 10,886, of which 18 % were affordable housing.
"Subject to ongoing stable market conditions, we anticipate a natural growth in completions in 2013, as our strong order book, land acquisition strategy and planning approvals on strategic sites organically increase our outlet numbers," Pete Redfern, chief executive, said in a statement.
Redmayne-Bentley stockbroker, Lauren Charnley, told Huff Post UK: "The results indicate the property market could be well on the road to recovery, though sentiment remains cautious and shares were little changed at the open."
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