Taylor Wimpey bullish on outlook with land-buying spree

Taylor Wimpey has splashed out circa £826m on new sites since the end of Q2, significantly ahead of its normal acquisition rate. In a trading update, the housebuilder said it had agreed terms on 70 sites comprising some 14,500 plots. It said the deals give it “increased confidence” of delivering its medium-term operating margin target and “accelerate our volume growth from 2023 onwards”. The housebuilder added it expects to “invest significantly” in additional land over the next 12 months. It also said its primary focus was to return the business to 21-22% operating margin and expects to end 2020 with a net cash balance of between £550m and £750m, up from £545.7m on 31 December 2019. Chief executive Pete Redfern said: “The trading backdrop remains resilient and the quick recovery of the housing market is testament to the underlying strength of demand and supportive lending backdrop. “We have made good progress in the second half of the year to date, maintaining a robust sales rate and building a strong forward order book.” To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette