Taylor Wimpey says UK housing market growing steadily and sustainably

Housebuilder Taylor Wimpey has warned that the housing market is beginning to cool, but said prospects are still good.

The company said its operating margin would rise for the year, but the housing market was steadying as sales rates from June 30 to the present day fell 5% compared with the previous year.

CEO Peter Redfern said in a review of performance for the last quarter: “We are encouraged that conditions have moderated but remained positive.

“Today we are operating in a UK housing market which is growing steadily and sustainably.”

The firm upgraded its guidance for operating margin growth of 400 basis points, compared to guidance of a 300-basis points rise in July.

Taylor Wimpey is active in Fife and Tayside, and is developing sites at Carnegie Grange and Fordell Lea near Dunfermline. It also wants to build at Meadowlands and Masterton south of Dunfermline, and has a proposed development at The Grange in Monifieth.

It has submitted a proposal of application notice for a residential development in Inverkeithing.

In its quarterly review, the company revealed that house completions will rise to 12,500 this year.

Shares rose 4.2% or 4.9p to 122.2p.