Taylor Wimpey says market stability continues

19th Jun 2009 07:02

Housebuilder Taylor Wimpey may increase outlet openings during the second half of the year following continued stability in the UK housing market since April's final results.Its net private reservation rate remains at around 0.6 per site per week, with prices broadly flat and cancellation rates below the long run average. The normal seasonal slowdown is expected over the summer months."Whilst wider economic conditions remain weak and rising unemployment could still have an effect on our markets, the severe downside scenarios for which we have been planning now appear less likely to materialise," the group will tell shareholders at today's AGM.The firm, whose order book currently stands at £971m, up 73% from the £562m reported for the end of 2008, currently operates from 337 outlets, down from 386 at the end of December."If the current market stability is sustained into the autumn selling season, we will look to increase the number of outlet openings during the second half of the year," it said."Whilst we remain cautious on land buying, opportunities are starting to emerge to purchase good quality land at prices that should be value creating for Taylor Wimpey."Markets in North America have also improved in recent months, with an increase in both net reservation rates and cancellation rates since the full year figures.Last month the company tapped the market for £510m, with around 78% of the shares on offer taken up by Taylow Wimpey shareholders. The rump of the issue was taken up by institutional shareholders, hopeful that the UK housing market has now bottomed out.Results for the period ending 30 June 2009 will be published on 5 August.