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Taylor Wimpey sees 201 reservations under NewBuy

Tayor Wimpey has seen 201 reservations under NewBuy since the launch in March - representing a third of overall industry reservations.

Providing an update for the six months to 1 July 2012 ahead of its half-year results on 1 August, the house builder said mortgage lending remains restricted, but that it is “encouraged by the introduction of a number of higher loan to value products since the start of the year, most notably under the NewBuy scheme”.

It has seen 201 home reservations under the NewBuy scheme - where mortgages are underwritten by a government and housebuilder guarantee to reduce the size of the deposit - since its launch in March 2012, which it says represents “around one-third of overall industry reservations”. 

It has also increased use of the government-backed FirstBuy scheme, “although we retain our cautious approach to the use of shared equity incentives in general”. 

The firm completed 5,083 homes during the first half of 2012 (H1 2011: 4,707). These included 4,137 private completions (H1 2011: 3,675), 893 affordable completions (H1 2011: 1,004) and 53 share of joint venture completions (H1 2011: 28). The company is now operating from 314 outlets (3 July 2011: 310).

The total order book value, excluding completions to date and joint ventures, was £960m at 1 July 2012 (3 July 2011: £932 million), representing 5,720 homes (3 July 2011: 5,989 homes). 

The overall average selling price increased to £175k (H1 2011: £168k).  The average selling price on private completions increased to £188k, “reflecting a higher quality product mix in terms of both size and location (H1 2011: £182k)”. The average price on affordable completions decreased to £115k (H1 2011: £117k). 

Taylor Wimpey revealed last year that it plans to release capital to shareholders and cap volume after restoring its dividend to shareholders.

It said this week:  “Our continuing prioritisation of margin improvement ahead of volume growth is also reflected within our order book, where we have achieved additional margin progression since the year end.”

The builder, which suffered extensive job cuts and division closures in the downturn and had £1.9bn of debt in 2008, said net debt at 1 July 2012 was below £150m. Debt was reduced from £664m in 2010 to £115m last year after the sale of its north American business.

Its strategy remains focused on increasing the number of strategic land sites, improving returns from land purchases since the downturn and a tight focus on costs.

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