Taylor Wimpey completed more than 7,300 houses in the first six months of 2021

Housebuilder Taylor Wimpey has rejected suggestions that the UK housing market is in a bubble after it announced bumper half-year profits.

Table of Contents

Chief executive Pete Redfern told the BBC that market conditions were completely different from the time of the last house price crash in 2007.

Taylor Wimpey completed more than 7,300 houses in the first six months of 2021, a record performance.

It made operating profits of £424m, as against a £16m loss a year earlier.

The firm said it had raised its full-year profit expectations to £820m and expected to complete up to 14,000 new homes over the full 12 months.

It had previously said it expected profits for the year to come in at about £779m.

Housing boom

Mr Redfern told the Today programme that in 2007, mortgage lending had been “significantly laxer” than now, while house price growth had been “well above” inflation levels.

At the same time, there had been a high number of investors buying homes.

“None of those things is true today,” he said, adding that the UK currently had an “entirely healthy and stable housing market”.

Taylor Wimpey said it had seen “strong demand” for homes in the UK during the first half of this year, underpinned by low interest rates, good mortgage availability and government support for customers in the form of the Help to Buy scheme.

It added that there had been healthy levels of customer interest in reservations, extending well beyond the end of the stamp duty holiday.

It also reiterated that it had brought in a new cladding fire safety provision of £125m to make apartment buildings safe and mortgageable.

Emerging from the Covid pandemic

As the country emerges from the Covid pandemic, the housing market has been showing signs of a boom.

Last week, property website Zoopla said surging demand for houses would last well into 2022 as buyers continued to look for more room after being cooped up during the pandemic.

A search for space had pushed up the average price of a house by 7.3% over the past year, reaching a new high of £230,700, it said.

Related Articles you may like

Sound Insulation Strategies for Basement Conversions
Sound Insulation Strategies for Basement Conversions

Converting your basement into a functional living space, be it a home theatre, guest bedroom, or office, necessitates effective sound insulation to ensure comfort and peace throughout your home. By understanding how sound travels through airborne, structural, and flanking paths, you can strategically address these areas using specialised materials like acoustic insulation batts, Mass Loaded Vinyl, and acoustic panels. Implementing structural modifications such as double stud walls and floating floors, alongside sealing gaps with acoustic sealants and door sweeps, further elevates soundproofing. Embracing advanced techniques and treatments like acoustic foam panels and bass traps ensures a comprehensive approach to creating a serene, sound-isolated environment.

Read More »
Building Regulations for Eco-Homes: Challenges and Opportunities
Building Regulations for Eco-Homes: Challenges and Opportunities

The transition to eco-friendly home building is increasingly essential in addressing climate change, but it is fraught with challenges such as navigating evolving building regulations, higher initial costs, and a lack of expertise in sustainable practices. Despite these obstacles, there are significant opportunities for growth, including advancements in environmental conservation, increased market demand, and enhanced health and well-being for residents. By leveraging innovation and collaboration within the industry, construction firms can overcome these challenges and position themselves at the forefront of sustainable development. Ultimately, the long-term benefits of eco-friendly homes, such as reduced resource consumption and financial savings, underscore the vital importance of this shift in building practices.

Read More »