Taylor Wimpey Reports a 73% Increase in Orders

Taylor Wimpey, one of the largest housebuilders in the United Kingdom, recently reported a 73% increase in its orders. Moreover, the company stated that its current book stands at £971 million, which represents a significant rise from £562 million reported at the end of 2008. The news from Taylor Wimpey came simultaneously with the reports from estate agents, suggesting that buyers are coming back to the UK property market, which is still being held back by low property supply. Estate agents’ reports also suggest that more and more buyers are being attracted by new-builds. Given this fact, the increase in the orders at Taylor Wimpey comes as no surprise. According to Taylor Wimpey, many of the bad predictions for the UK property market have not come true despite the fact that the rate of unemployment is still growing and economic conditions remain weak. Moreover, the specialists at Taylor Wimpey expect an increase in the price of completed properties in the second half of 2009. Due to this fact, the company is contemplating the purchase of more land across the United Kingdom. The company’s representative claimed that the firm’s decision has been encouraged by the ongoing stabilization of the UK property market. However, the management of Taylor Wimpey remains cautious as the wider economy still remains unpredictable. The company plans to focus on costs reduction until the future of the property market in the United Kingdom becomes more or less predictable. Also, Taylor Wimpey reported an improvement of its financial position, which was achieved through the issuance of £510 million in new equity. The firm’s move reduced the net debt of Taylor Wimpey almost by 30% to £1.01 billion from £1.53 billion in the fourth quarter of 2008.