Taylor Wimpey has reported significant rise in house sales over the last year, despite the fact that the housing market in the UK is a difficult place for people to buy.
The house builder, which is an FTSE 100 company, reported an increase in sales of 15 per cent for this year so far, it has been reported.
In the second half of 2015, this climbed even steeper, accelerating to a 22 per cent increase in sale volume.
At the moment, the company’s total order book stands at about £2.1 billion, when a year ago it was at £1.7 billion.
“The benefits of Help to Buy Equity Loans are clearly allowing Taylor Wimpey to outperform the wider UK housing market which has seen transactions rather subdued during 2015,” said Anthony Codling, an equity analyst from Jefferies.
The new build market is very healthy, from Taylor Wimpey’s perspective, and 27 per cent of the homes it expects to finish building throughout 2016 have already been sold. However, from the perspective of first time buyers, the market is anything but healthy.
The demand for new, affordable homes that people can actually purchase and get a mortgage for is high. So high that people have gone as far as to queue overnight to make sure that they could get them.
The Help to Buy ISA will become available on 01 December, hopefully helping people to purchase their first home by giving them a direct boost to their savings. If first time buyers can afford to pay out bigger deposits, thanks to this boost, they may finally crack into the market, and cause builders to try and capitalise on that section of the market.
Whether or not the people struggling to get onto the housing market will be able to in the coming year, the market is good for house builders who are fairly certain to sell off properties they build, and will be able to charge a high amount for them as low supply pushes house prices up.
