MARKET REPORT: Taylor Wimpey lifted as property market boom sees demand for homes rise to the highest level in 20 years
The property market boom has seen demand for homes rise to the highest level in two decades and is in no danger of slowing down any time soon, according to Taylor Wimpey’s head honcho.
Chief executive Pete Redfern believes the clamour for new housing will continue even if the Government ends the support for buyers which has turbo-charged house prices and purchases since last summer.
‘I have more confidence than at any time in the last 20 years about underlying demand,’ he said.
Builders boosted: The property market boom has seen demand for homes rise to the highest level in two decades
FTSE 100-listed Taylor Wimpey reported that the average price of its houses rose in the first four months of this year compared with going rates at the end of 2020. It did not say by how much.
But it has a strong pipeline – with the value of its order book rising by £140million to £2.8billion in the year to April 18.
What investors are likely to be most reassured by, however, is Redfern’s take on the Government’s interventions, which include a generous stamp duty holiday.
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‘I’m still of the view that the stamp duty holiday isn’t a big part of what we’re seeing,’ he said. ‘What we’re seeing is driven by underlying demand.’
Shares in Taylor Wimpey rose 0.8 per cent, or 1.45p, to 184.8p – and are now up by 11.5 per cent so far this year.
Elsewhere in the construction sector, builder and office refitter Morgan Sindall barrelled to the top of the FTSE 250 leaderboard.
Its shares rocketed 19.7 per cent, or 367p, to 2235p after it upgraded forecasts following a stellar start to the year.
Profits this year will be ‘significantly ahead’ of expectations, it said, as it stands to benefit from demand for affordable housing, urban regeneration and infrastructure investment.
Analysts think the company will make a profit of £109million this year – up from previous estimates of £93million.
Across the wider market, a flurry of firms published results in another day that showed the stark divide between the so-called Covid ‘winners’ and ‘losers’.
The world’s biggest exhibition organiser, Informa, swung to a £1.1billion loss for the year after virtually its entire schedule of events was wiped out by the pandemic.
Revenues sank by 43 per cent and it was forced to write down the value of its events roster by £593million, as it said Covid would continue to have a knock-on effect.
Bosses struck a cautious tone – saying that although get-togethers have restarted in China and look set to run in North America, it is still too early to gear up for a worldwide recovery.
Shares fell 2.1 per cent, or 11.6p, to 552.6p.
Domino’s Pizza said it recorded a 19 per cent jump in sales to £371million in the UK and Ireland in the three months to March as families were forced to stay at home during the third lockdown.
But the fast-food firm’s stock fell 1.1 per cent, or 4p, to 363p, as the City began wondering how long the Covid boom could go on for.
Trading platform AJ Bell also slid 3.6 per cent, or 16.8p, to 449.8p despite reporting a 64 per cent jump in customer numbers in the first quarter compared with the same three months of last year.
But warehouse landlord Segro was in investors’ good books rising 1.6 per cent, or 16.2p, to 1010p as it continued to reap the rewards from the online shopping boom.
Marks & Spencer rose 2.3 per cent, or 3.6p, to 158.05p after it added Mars boss Fiona Dawson as an adviser – the fourth woman to be promoted to the board in the last year.
The FTSE 250 retailer has boasted that the move will mean that two in five of its senior team are women.
Meanwhile, the FTSE 100 rose 0.6 per cent, or 42.95 points, to 6938.24 as the FTSE 250 rose 1.3 per cent, or 279.14 points, to 22364.87.