FTSE 100: Taylor Wimpey warns of slowing housing demand as mortgage costs rise

A semi-completed housing estate on former farmland, a landscape that is fast changing to residential use by housing developer Taylor Wimpey at Netherton Grange, Youngwood Lane, Nailsea, on 7th November 2021, in Nailsea, North Somerset, England. Nearly 170 homes are being built here on the edge of Nailsea in rural North Somerset after detailed plans were approved. (Photo by Richard Baker / In Pictures via Getty Images)
Taylor Wimpey have said that customer interest remains strong. Photo: Richard Baker/In Pictures/Getty

Taylor Wimpey has posted a pre-tax profit of £827m, up nearly 22% on the previous year, noting signs of improvement in the housing market.

The UK-based housebuilder reported a profit before tax for 2022 of over £827m, coming from a revenue of £4.4bn, up over 3% on the year previous, with the group’s overall average selling price per house up 4% to £313,000.

Taylor Wimpey stated that there are now signs of an improvement in the housing market.

In the housebuilder's full year results for 2022, chief of Taylor Wimpey Jennie Daly said: “In a year marked by two distinct halves, we acted quickly and decisively to address rapidly changing market conditions in the second half of the year and continued to focus on operational excellence and efficiency."

He continued: “While the weaker economic backdrop continues to impact the near-term outlook, customer interest in our homes remains good and, whilst it is still early in the year, trading has shown some signs of improvement compared to Q4 2022.”

The firm stated that UK average selling prices on private completions was up 6% to £352,000, compared to £332,000 in 2021.

The housebuilder added that the overall average selling price of each unit was up 4% to £313,000, compared to £300,000 in 2021.

However, the UK housebuilder Taylor Wimpey (TW.L) reported that its sales rate for the year has decreased to 0.62 homes per outlet, compared with 1.02 units in the previous year.

The firm's order book, that forecasts future sales performance, stood at £2.15bn as of Feb. 26, down from £2.9bn a year earlier.

Shares in Taylor Wimpey plc (TW.L), a FTSE 100 (^FTSE) developer, fell in early trading in London, down 1.27% to 116p.

Watch: Mortgage applications fall to 28-year low as home prices remain elevated