Housebuilder’s strong performance with sales and developments up in Yorkshire

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TAYLOR WIMPEY said it performed “strongly” in the first six months of the year, with sales and prices at the upper end of expectations.

The housebuilder said in the half year to June 29 it increased the amount of homes it built by 11 per cent to 5,766, while average selling prices rose 10 per cent to £206,000.

Developments, visits and sales in Yorkshire increased by 10 per cent, said chief financial officer Ryan Mangold.

The company added it expected to see a profit margin of around 16 per cent, compared with 13.1 per cent in the same period a year ago.

The group, which teetered on the brink of collapse in 2009 due to its massive debts, has been helped by a strengthening economy, record-low borrowing costs and the Government’s Help to Buy house loan scheme.

It said it welcomed affordability checks introduced in April’s Mortgage Market Review and new rules last month from the Bank of England aimed at preventing a housing bubble.

Under the Bank’s measures lenders must ensure no more than 15% of new mortgages are given to people borrowing more than 4.5 times their income.

Lenders will also have to stress test borrowers’ ability to repay loans if their mortgage rate were 3 per cent higher than the rate at the time the loan was approved. Taylor Wimpey has an office in Wakefield.

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