Taylor Wimpey backs FY outlook, hails signs of improvement in customer demand

(Sharecast News) - Taylor Wimpey backed its full-year outlook on Thursday as it said it saw steady signs of improvement in customer demand in the second half to date, as mortgage rates reduced and affordability improved.

The company said that while there was some uncertainty ahead of the Budget last month, it remains on track to deliver full-year 2024 UK volumes excluding JVs towards the upper end of its guidance range of 9,500 to 10,000 homes, and group operating profit in line with current market expectations of £416m.

In the second half to date, Taylor Wimpey's net private sales rate per outlet per week was 0.70, up from 0.51 in the same period a year earlier, with a cancellation rate of 17% versus 21%.

Excluding the impact of bulk deals, it achieved a net private sales rate of 0.68, versus 0.48.

For the year to date, the housebuilder achieved a net private sales rate of 0.73, up from 0.63, with a cancellation rate of 15%, down from 18%. Excluding the impact of bulk deals, the net private sales rate was 0.68, up from 0.57.

As at 4 November, Taylor Wimpey's current total order book excluding joint ventures stood at around £2.2bn, up from £1.9bn in 2023.

Chief executive Jennie Daly said: "We're pleased with the progress and performance of our business in the second half to date. Our teams have continued to work extremely hard on the ground, supporting customers through their buying journey and delivering an improved sales rate - thanks to the quality of our sites and locations, and our focus on operational excellence.

"Delivering high-quality homes is essential to achieving sustainable economic growth and a thriving society and we welcome the steps the Government is taking to unlock the planning system and deliver more homes."

She said the company was well positioned for growth from 2025, "underpinned by a strong balance sheet, well-located landbank and highly experienced teams".