Big boost for Taylor Wimpey as shares rise

TAYLOR Wimpey shares climbed 4pc yesterday after it reported sales were up by more than one fifth.

In its half-year results the housebuilder announced it had sold 22pc more than in the same period in 2014.

The company announced ‘record order book levels’, at £2.1bn, excluding joint ventures, up from £1.7bn last year, and said that 27pc of homes that will be finished by 2016 are already sold.

Demand was driven by real wage growth and the shortage of housing, as well as a boost from the Help to Buy scheme which offers government-backed loans to assist first time buyers to enter the market.

Looking ahead, Taylor Wimpey expects net cash to nearly double to £220m by the end of 2015, up from £112.3m last year, once £308m in dividends have been paid for this year.

Pete Redfern, chief executive of Taylor Wimpey, said: ‘We have seen an excellent summer selling season strengthen further in the autumn period.’

Shares rose 7.1p to 180.9p.