Twitter Facebook RSS FEEDS

Taylor Wimpey writes down £550 million

Monday, 30 June 2008 12:00 AM

Taylor Wimpey has announced it is to write down £550 million on its UK land holdings, as the property market continues to fall.

The organisation - the country's largest house builder - confirmed its "cautious outlook" on the sector had been bourn out, with the property market now entering a "significant downturn".

In addition Taylor Wimpey will also write down the value of its holdings in the US by approximately £70 million and in Spain by £40 million.

In response, the housebuilder has suspended all land purchases, as of September 2007.

Following "significant reorganisation" within the company, Taylor Wimpey now also expects substantially reduced overheads.

"However, in light of current market conditions and to protect against the risk of further deterioration, we have agreed an amendment to the terms of the revolving credit facility with our banks," explained a statement released this morning.

"This includes suspending the covenant based on net interest in relation to earnings before interest, taxes, depreciation and amortization (EBITA), which we believe is not appropriate in current market conditions, in favour of one based on operating cash flow, reflecting our ability to generate cash."

Housebuilders have been particularly hard hit following the credit crunch, with prices for UK property continuing to fall, with mortgage lending also significantly reduced.

Figures released by the Land Registry on Friday show house prices fell for the ninth consecutive month during May.

This slump in the market has prompted Taylor Wimpey to seek additional finance, in order to ensure an appropriate financial structure is maintained.

"We have instigated discussions with shareholders and other institutions regarding raising additional financing, which would most likely be via a placing and open offer," added the statement.

Further details are anticipated to be released with the half year trading update, expected on July 2nd.

Chris O'Toole

Related stories

73% rise in orders for Taylor Wimpey

73% rise in orders for Taylor Wimpey

73% rise in orders for Taylor Wimpey

 Taylor Wimpey issue 2 billion new shares

Taylor Wimpey issue 2 billion new shares

Taylor Wimpey issue 2 billion new shares
Taylor Wimpey to cut 900 jobs

Taylor Wimpey to cut 900 jobs

Taylor Wimpey to cut 900 jobs

 Massive loss at housebuilder Taylor Wimpey

Massive loss at housebuilder Taylor Wimpey

Massive loss at housebuilder Taylor Wimpey
Barratt Homes properties

Two million homeowners stuck in first properties

It's not just first-time buyers that are stuck: half of young homeowners have become "frustrated middle movers", research has found.

 Row of terraced houses on a sunny day

Six million give up on ever owning a property

Only one in 20 potential buyers have enough money saved for a deposit – and 13% of Brits don’t plan to buy at all.
An increase of £100 a month would leave 20 per cent not having enough for essentials and 11 per cent unable to pay the mortgage. Image:Thinkstock

Mortgage rate hike for one million borrowers today

Seven out of ten mortgage holders worried about increase in rates, says Which.

 Cranes and builder at sunset

Value of construction projects down by a third

The value of house-building in the three months to May dropped by 31 per cent, according to figures released today.
Mortgage application

Mortgage lending down 29% in January

Home loan approvals dropped by almost a third at the start of the year - but what was to blame?

 Riverside property in London

House prices down in most UK regions

House prices in most UK regions suffered year-by-year falls in March, although certain areas bucked the trend.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.

FAQs about commercial stamp duty

If you want to relocate to larger premises, you need to know about commercial stamp duty. Different rates apply than with residential property, however, like residential buyers, you could potentially benefit from stamp duty mitigation.