Taylor Wimpey Plc says it sees reason for optimism in Britain’s housing market after an uplift in 2023 sales.
(Bloomberg) — Taylor Wimpey Plc says it sees reason for optimism in Britain’s housing market after an uplift in 2023 sales.
The homebuilder said its average weekly private net sales rate in the four months through April was 0.75, according to a statement Thursday. That’s an improvement on the second half of 2022, when the rate was 0.48, but still short of the 0.97 average in the same period last year.
“We have seen continued recovery in demand from the low levels experienced towards the end of 2022, supported by good mortgage availability,” Chief Executive Officer Jennie Daly said in the statement.
Still, the company said its total order book in the period stood at £2.38 billion ($3 billion), against more than £3 billion in 2022. That represents 8,576 homes, compared with over 11,000 last year.
Britain’s housing market is in the midst of a slowdown triggered by higher borrowing costs and the threat of a drop in house prices. Homeowners are being forced to cut their spending on other expenses to cover higher mortgage bills, while many prospective buyers are avoiding entering the mortgage market altogether.
However, the nation’s homebuilders have displayed some optimism about the housing market this week. Persimmon Plc said Wednesday that it expects to sell toward the top end of its previously forecast 8,000 to 9,000 homes in 2023, following an uptick in demand for three, four and five bed properties.
That’s largely down to a steady decline in mortgage rates, which spiraled to 14-year highs last year. The average two- and five-year fixed-rate deals were down to 5.24% and 4.96%, respectively on Tuesday, according to Moneyfacts Group Plc.
Still, Taylor Wimpey and Persimmon both issued warnings about a collapse in first-time buyer sales in the wake of pricier home loans. The note of caution comes as a cost-of-living squeeze and the end of the Help-to-Buy program weighs on demand.
“We remain cautious of continued macroeconomic uncertainty,” Taylor Wimpey’s Daly said.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.