Taylor Wimpey says trading has remained resilient in 2016 despite the effects of the referendum, though the central London market continues to soften.
In an update for the year to date, it said sales rates stood at 0.75 homes per week, and 0.7 for the second half of the year, compared to an average of 0.76 in 2016.
Cancellation rates were 13%, compared to last 11% last year, while the housebuilder said it is 23% forward sold for 2017. Its total order book stands at 8,981 homes, worth £2.3bn.
“Trading during the second half of 2016 and into the autumn selling season has been strong, with good levels of customer confidence and demand underpinned by a wide range of mortgage products,” said chief executive Pete Redfern.
It warned that looking ahead, build costs were set to rise by 3% to 4% in 2016 and 2017 respectively, due more to labour shortages than the rising cost of importing materials.
It still expects to deliver an improvement in operating profits for the year, and remains committed to a £450m dividend payment in 2017.
In a separate note, analyst Jefferies continued to rate the housebuilder as busy, saying: “Taylor Wimpey’s plans for 2016 have not been derailed by this year’s political events and the forward orderbook suggests that profits will grow further in 2017.
“We are leaving our estimates for this year and next unchanged. Cash generation is strong and the group remains committed to the previously announced £450m dividend payment to shareholders in 2017. Taylor Wimpey remains our top pick of the housebuilders we cover.”
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