(Bloomberg) -- UK developer Taylor Wimpey Plc raised its outlook for house sales this year to the top end of a previous guidance and welcomed the new government’s plan to reform the planning system for approving homes.
The company had earlier expected to sell between 9,500 and 10,000 homes in the full year, which is still fewer than the roughly 10,400 it sold in 2023. Taylor Wimpey’s average weekly private net sales rate for the four weeks ended July 28 was 0.64, compared with 0.47 in the same period a year earlier, according to a statement Wednesday.
“We see the planning reforms outlined by the new government as key to unlocking future years land supply,” the company said in the statement. These commitments “have the potential to create a positive future impact on the sector,” it added.
The UK housing market endured a tough 2023, as stubbornly high interest rates kept mortgage prices elevated. However, optimism is increasing on the back of a steady decline in home loan costs in recent weeks and fresh political promises to boost housebuilding.
Taylor Wimpey’s average UK selling price on private completions dropped 2.7% to £356,000 ($457,000) in the first half of the year from the same period in 2023 due to both underlying price deflation and mix. The homebuilder said its cancellation rate in the four weeks ended July 28 was 19%, compared with 24% in the same period a year earlier.
The company warned higher mortgage costs are continuing to impact affordability for some of its customers, particularly first-time buyers. Still, it said mortgage availability remained good — with high loan to value products now returning to the levels seen prior to the 2022 mini budget.
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