Taylor Wimpey say the housing market remained positive in the second half, with good levels of customer demand underpinned by a wide range of mortgage products. Sales remained strong, despite weakening slightly versus a year earlier.
Taylor Wimpey shares rose 3% following the announcement.
Nicholas Hyett, Equity Analyst at Hargreaves Lansdown:
"We don’t think much has changed in the housing market since the referendum, yet. Brits still want to own homes, whether in or out of the EU, and the UK still faces a major housing shortage. That should support demand for housing in the long run. At the moment interest rates look set to stay lower for longer; supporting mortgage affordability.
If that continues to be the case the housebuilders should be able to deliver the hefty shareholder returns they have planned.
Having said that we also generally believe in the market adage that “nothing yields 8%” and Taylor Wimpey currently offers investors over 9%. Even after today’s results the market is clearly nervous about the viability of the generous dividend plans in the longer term."
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