Taylor Wimpey buoyed by strong construction sector

Taylor Wimpey buoyed by strong construction sector

Taylor Wimpey built more homes in 2015 than at any point during the last six years, as the housebuilder enjoyed a strong home building market.

The group built 13,341 homes last year at an average selling price lifted by 8% to £230,000 compared to 2014, as the group benefited from record operating margins of over 20%.

The firm added in a trading update it also amassed a record order book, leaping 27% year-on-year to £1.8bn, representing 7,484 homes.

Taylor Wimpey, in common with other housebuilders, is enjoying a recovery in the housing market, supported by rising incomes, low unemployment and low interest rates.

Chief executive, Pete Redfern, said: "We have delivered a strong trading performance in 2015, in a positive housing market, building more homes than at any point in the last six years and delivering a record operating profit margin of over 20%.

"We are confident that the principles we are operating to will deliver long term sustainable value across the housing cycle."

The firm, which teetered on the brink of collapse in 2009 due to oversupply and massive debts, said it was "confident" of making further progress this year.

In September the government said it wanted the industry to build one million new homes by 2020.

This compares with 460,000 homes that were built between 2011 and 2014, according to the National Housing Federation.

Taylor Wimpey said it "welcomed" the government's commitment to renewed housebuilding.

It added: "Housing remains high on the political agenda, with a recognition of the structural demand and supply imbalance that exists in the UK."

Analysts at Jefferies said: "Taylor Wimpey's trading update today suggests that the 2015 results, will be in-line with expectations, but record breaking nonetheless."

The broker forecasts the housebuilder's annual pre-tax profits will jump almost 37% to £610.7 million this year.