HOUSEBUILDER Taylor Wimpey is predicting it will complete about 950 homes in Scotland for the second year in a row.

It said its west Scotland division has completed on 222 houses this year at an average selling price of around £178,000.

Meanwhile, the east division has recorded 195 completions with average prices of £185,000.

Pete Redfern, chief executive, said: "The health has continued to improve in the Scottish market.

"It is not the case in Scotland that we are doing well in Edinburgh while Glasgow is doing badly. Instead good locations are doing well while more secondary places are more difficult."

That came as Taylor Wimpey, which operates from more than 30 sites in Scotland and 312 across the UK, announced a 42% hike in half-year profits before exceptional items from £76.7 million to £109m.

The strong rise in profit came on the back of an 11.1% increase in turnover from £906.2m to more than £1 billion while gross operating margins grew from 11% to 13.1%.

Across the UK average prices rose 7% from £176,000 to £188,000 which Mr Redfern said was mainly driven by larger houses in better locations being sold rather than a large increase in underlying prices.

He believes underlying prices are increasing by between 2% and 3% with an expectation that will continue to be the case during the rest of 2013.

There were 5191 completions in the six months to June 30, against 5083 in the comparable period of 2012, while cancellation rates were at 14%.

Taylor Wimpey, which employs more than 200 people in Scotland, said better mortgage availability, government support schemes and improving consumer confidence were leading to "a much improved and healthier housing market, showing sustainable improvement."

Full-year sales volumes are expected to be at the upper end of expectations with Taylor Wimpey stating it is almost 90% forward sold for 2013.

The UK Government's equity loan scheme Help to Buy was used in 1300 home reservations and 235 completions in the half-year.

The English Newbuy and Scottish MI New Home mortgage schemes were used in 552 transactions, against 546 in the whole of 2012.

Help to Buy is being extended to include a state guarantee for mortgages in January, shifting the risk of default from lenders to the State.

Mr Redfern has previously voiced concerns the support schemes could become a hazard for the economy unless a time limit is set so that the state is not on the hook indefinitely and yesterday said: "While I stick by the need for there to be a well managed exit there is no rush. I think we will get some guidance within the next 12 months."

The company said it entered the second half of the year with a record order book of £1.3bn.

Mr Redfern added: "It is pretty good conditions and we are well placed to take advantage of that."

The group also revealed that it had written back £34.1m on its land holdings.

It wrote down £904.4m from its UK division in 2008 and £445m in 2009.

Analysts at Numis Securities said Taylor Wimpey had posted a "strong set of interim results".

Shares closed up 0.3p, or 0.28%, at 106.5p.