Taylor Wimpey ends 2018 with completions and price boost

Taylor Wimpey ends 2018 with completions and price boost

House builder Taylor Wimpey plc (LON:TW) have shared the prosperity of their successful counterparts with a high rate of home completions and a boost to their average sale price and on-year revenues, as December drew to a close.

In addition to the number of completions rising 3% to 14,947 and average selling prices up 2% to £301,000, Taylor Wimpey’s yearly order book was up from £1.63 to £1.78 billion on-year.

The company’s positive results come on the back of a net private reservation of 0.80 per outlet, up from 0.77 on-year, and the fact that their 14% cancellation rate is still classed as ‘low’.

Taylor Wimpey Chief Executive, Pete Redfern, said, “Despite wider macroeconomic uncertainty, the housing market remained stable during 2018 and we had a good trading performance”

“We are continuing to deliver against our strategy and ended the year in a positive position, underpinned by our strong order book and balance sheet.”

“As we enter 2019, we maintain our guidance for stable volumes although are mindful of market sensitivity.”

“We are confident that our focused strategy of managing the business through the cycle and driving further operational improvements will enable us to continue to deliver a high-quality product and service to our customers, long term value for shareholders and growth into 2020.”

UK property is wholly uncertain at the moment. While many have forecastedoom and gloom amid uncertainty – and the burst of the London bubble – nothing is set in stone. A prudent investor would proceed with caution and enjoy moments of resurgence as they occur, while overstating their significance.

Taylor Wimpey shares are currently trading up 5.98% or 8.4p at 148.8p per share 09/01/19 13:48 GMT. Shore Capital analysts have reiterated their ‘Buy’ stance on Taylor Wimpey stock, while Peel Hunt analysts have reiterated their ‘Hold’ stance.