Taylor Wimpey upbeat on housing market

http://www.guardian.co.uk/business/2012/jul/04/taylor-wimpey-upbeat-housing-market

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Taylor Wimpey expects an improvement in its financial results in the first half of the year, supported by a "stable" UK housing market.

The company and its rivals are benefiting from a shortage of supply of new homes even though the economy is back in recession. If these stable market conditions continue, the group expects to continue posting a better performance period-on-period, with analysts expecting full-year returns in 2012 at around £207m, about 30% higher year-on-year.

"We think it is most likely that the current conditions will continue, but that doesn't mean it's certain," chief executive Pete Redfern said.

The risks were from outside the UK housing market, and mainly to do with the banking system, he said, adding that those risks had existed for some years without having a significant impact on the market.

"We like everybody else will watch what's happening in southern Europe, with the impact on the banking system, closely," he said.

Redfern added that if conditions remained broadly stable, he was "happy" with a consensus of analyst forecasts that put full-year operating profit at around £207m, about 30% higher year-on-year.

The company, which is Britain's second biggest housebuilder by volume, was continuing to buy land when it could do so at attractive return levels. Taylor Wimpey's order book grew to £960m as of 1 July, up from £932m a year earlier.