Sunday, February 25, 2024
UK

Taylor Wimpey says housing market remains uncertain

Great Britain

Britain’s housing sector is hoping to see some relief as mortgage rates seem to have peaked with markets betting on BoE rate cuts later this year, but broader economic challenges have dented hopes of a strong recovery

Britain’s Taylor Wimpey on Thursday said the housing market remained uncertain in the near term, reflecting a cautious stance ahead of the key spring selling season.

Britain’s housing sector is hoping to see some relief as mortgage rates seem to have peaked with markets betting on Bank of England (BoE) rate cuts later this year, but broader economic challenges have dented hopes of a strong recovery.

Taylor Wimpey joined mid-cap rival Persimmon in underscoring challenging trading conditions this year in spite of signs of the housing market slowdown easing and refrained from providing any forecast on 2024 profits and build targets.

Looking ahead, it is encouraging to see a cut in mortgage rates, nevertheless, in the short term, the market remains uncertain and the planning backdrop extremely challenging, CEO Jennie Daly said in a trading statement.

Shares in the company dropped 0.5% in morning trade.

The FTSE 100 company reiterated its 2023 operating profit expectations for the year ending December 31 2023.

Taylor-Wimpey said its year-end order book, a key measure in gauging short-term sales performance, excluding joint ventures sat at £1.77 billion ($2.3 billion), compared with £1.94 billion a year back.

Analysts at Hargreaves Lansdown said in a note that the message from Taylor Wimpey and Persimmon was that the market remained tough: Like so much else these days, an awful lot is hanging on the future path of interest rates.

Taylor Wimpey, which also has a small presence in Spain, said it built 10,438 homes in Britain, including joint ventures, last year, within its target range.

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