Taylor Wimpey Ups Housebuilding By 11%
Housebuilder Taylor Wimpey has increased its construction rate by 11% in the first six months of the year.
The company said it completed 5,766 homes in the first half, with an average selling price of completed properties at £206,000.
The average price was up 10% on the same period last year.
In a trading statement, the company said it expected to see profit margin increase to around 16% in the period.
The company said: "Customer confidence remains good - with increased employment security and a more affordable and accessible mortgage market underpinning demand."
The boost to building comes amid concerted calls to reduce the imbalance between supply and demand in the sector.
In mid-morning trades shares in the company were down 2%, amid profit-taking.
The sector has been volatile in recent weeks, having sold off in mid-June on prospects of a UK rate hike, only to recover towards the end of the month when the Bank of England (BoE) curbs on house prices proved less draconian than had been feared.
The BoE has warned that the biggest instability to the UK economy is surging house prices in some areas.
Recent home price data has indicated a growing regional divide between price growth.
While London has seen prices rise by around a fifth in a year, some regions have seen prices remain flat.
In April, new home loan rules were brought in to ensure mortgagees would be able to afford increased repayment if the BoE base rate increases.
The Mortgage Market Review stress testing has cooled loan approvals in the latter part of the first half, and forced lenders to closely scrutinise applicants.
A new cap has also been placed on the number of approvals given to those seeking high loan-to-income ratios.
The BoE has kept the base rate at an historic low of 0.5% since 2009, but there has been an increasing concern that it will increase, either later this year or early in 2015.