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73% rise in orders for Taylor Wimpey

73% rise in orders for Taylor Wimpey

Friday, 19 June 2009 11:43 AM

Taylor Wimpey, the UK housebuilder, today reported a 73 per cent rise in orders.

The company stated its book currently stands at £971 million, compared to £562 million at the end of 2008.

The news comes as estate agents are starting to report a higher level of buyers coming into the market - although they are still being held back by a narrow supply of properties being sold.

The dearth of new sales has increased the number of buyers looking at new-build properties.

Taylor Wimpey claimed many of the doomsday predictions for the property market now seem not to have materialised.

"Whilst wider economic conditions remain weak and rising unemployment could still have an effect on our markets, the severe downside scenarios for which we have been planning now appear less likely to materialize," a statement read.

The house builder added it expected to see an increase in the average selling price of completed properties in the second half of this year.

The firm is also now looking at purchasing more land, although it stated it remained cautious.

"We have been encouraged by the ongoing stability in the UK housing market, but remain cautious with regard to the prospects of the wider economy and in particular, the potential impact of rising unemployment," the firm stated.

"We will retain our focus particularly on cost reduction until the profile of any recovery becomes clearer."

Taylor Wimpey added it had strengthened its financial position - through a £510 million issue of new equity - leaving net debt at £1.01 billion, down from £1.53 billion at the end of 2008.