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Taylor Wimpey focuses on price hike

9:38am Wednesday 4th November 2009

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Housebuilder Taylor Wimpey has said it was focused on raising prices after selling all the homes earmarked for retail during 2009.

The firm said market conditions were "significantly better" from July 1 to date than last year, with cancellation rates at 16%, against 46% in 2008.

Sale prices were 9% higher than the £163,000 average seen in the first half, while Taylor Wimpey added that its US business had shown stability.

It said on UK trading: "We are now fully sold for 2009 and our sales focus remains on achieving price increases as we build our 2010 order book."

In response to the improved market conditions, Taylor Wimpey has steadily increased its build rates in the UK.

It has opened 22 outlets in the second half to date and now operates 317 sites, with further openings planned for the rest of the year.

The group said the continuation of improved market conditions into the autumn selling season had been reassuring, but warned further progress hinged on improvements in mortgage availability and the wider economy.

It added: "Our operational focus remains on build cost reduction and achieving sales price increases as we build our order book for 2010."

Shares surged 8% to 39.9p in the wake of Wednesday's upbeat report.

The group spent much of the last year in a battle for survival - leaving its shares at just over 3p at one point - before a refinancing deal in April gave it bank facilities totalling £2.47 billion. A £510 million cash call on shareholders also helped as debt is expected to fall to below £800 million by the end of the year.

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