Pete Redfern, chief executive of Taylor Wimpey
The housebuilder posted a 5% increase in UK home completions last year, with the average selling price increasing 4% to £264,000.
Taylor Wimpey has followed rival Persimmon in reporting bumper results for 2017, with the market looking rosy for UK housebuilders.
The London-headquartered company reported a 5% rise in home completions for the year ended 31 December and saw its average selling price rise 4% to £264,000.
Taylor Wimpey also ended the year with net cash of £512m, up from £365m at the end of 2016 and has secured agreements with 90% of freeholders to allow customers with a 10-year doubling ground rent lease to convert to an RPI-based structure.
Pete Redfern, chief executive, said: "We achieved a strong financial and operational performance in 2017 and are continuing to deliver against our strategy.
“Despite wider macroeconomic uncertainty, housing market fundamentals remain solid and our trading performance has been good.”
He added: “We go into 2018 with positive momentum and expect to achieve further progress against our medium-term targets.
“Our focused strategy of managing the business through the cycle, while also driving further operational improvements, will enable us to continue to deliver long term value for shareholders."
Laith Khalaf, a senior analyst at Hargreaves Lansdown, commented: “It’s pretty plain sailing in the UK housebuilding industry right now, with high levels of demand, low interest rates and the Help to Buy scheme all providing tailwinds for the sector.
“Against such a supportive backdrop, Taylor Wimpey is selling more homes at higher prices, and that bodes well for the company’s revenues. Building costs are rising, but even so Taylor Wimpey expects to improve its margins this year.
“Taylor Wimpey did suffer one big setback last year in the form of the ground rents scandal, however after taking a £130m charge to address this issue, the company now appears to have largely put the matter to bed.”
Our BQ Bulletin emails will land in your inbox at 7.30am, Monday to Friday, with a mix of the latest local business news, national news, and features to inspire you. Sign up here!
Click here to read our privacy statement