Taylor Wimpey PLC (LSE:TW.) has reported that ongoing market uncertainty means that sales remain significantly below levels seen prior to the rise in mortgage rates in quarter three of 2022, echoing sentiments from fellow housebuilders Persimmon PLC (LSE:PSN) and Barratt Developments PLC (LSE:BDEV) earlier in the week.
In a trading statement, Taylor Wimpey said it enters 2023 with a lower private order book than in recent years and expects overall volumes to reduce in 2023.
For 2022, the company said group completions for the full year were broadly in line with the prior year and it expects to report full-year operating profit in line with expectations.
The company said the business performed well in 2022 due to tight operational controls and selling price discipline leading to an improved operating margin.
Total group completions were 14,154 (2021: 14,302) with UK home completions down slightly to 13,773 (2021: 14,087), which included 2,920 affordable homes (2021: 2,501) equating to 21% of total completions (2021: 18%).
The net private reservation rate for 2022 was 0.68 homes per outlet per week down from 0.91 in 2021 with the cancellation rate for the full year at 18% (2021: 14%). However, in the second half of 2022, the net private reservation rate fell to 0.48 homes per outlet per week (2021: 0.85) and the cancellation rate rose to 23% (2021: 14%).
UK average selling prices rose by 6% to £352,000 with the overall average selling price increasing by 4% to £313,000.
The company said it ended the year with an order book valued at £1,941mln, down from £2,550mln at the end of 2021 which represents 7,499 homes.