HOUSEBUILDER Taylor Wimpey yesterday revealed its sales remain “significantly below” levels seen before the sharp rise in mortgage rates in the third quarter of 2022, saying it had “acted quickly and decisively to address changing market conditions”.

The group noted it was being “highly selective” on land purchases, declaring pricing in this market had yet to reflect the changing environment.

Chief executive Jennie Daly said Taylor Wimpey expected to report full-year operating profit in line with expectations, in spite of “the economic and political backdrop through the second half”. The company put the consensus expectation for group operating profit, including joint ventures and excluding exceptional items, at around £921 million.

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Taylor Wimpey flagged a lower order book than in recent years.

It said: “Although we have strengthened our outlet position during 2022 as planned, the ongoing market uncertainty means that sales remain significantly below levels seen prior to the rise in mortgage rates in Q3 2022. Accordingly, we enter 2023 with a lower private order book than in recent years and we expect overall volumes to reduce in 2023.”

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Shares in Taylor Wimpey rose 2.1p to 114.75p yesterday. The group’s statement yesterday followed trading updates this week from Barratt Developments and Persimmon, which also flagged the weaker UK housing market backdrop.

Taylor Wimpey said its net private reservation rate for 2022 was 0.68 homes per outlet per week, down from 0.91 in 2021. It said the cancellation rate for the year to December 2022 was 18%, up from 14% in 2021.

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The housebuilder noted that, in the second half of 2022, its net private reservation rate was 0.48 homes per outlet per week, down from 0.85 in the same period of 2021. It added that the cancellation rate was 23% in the six months to December 31 last year.