Builder Taylor Wimpey upbeat on house market

Jun 19 2009 By Andrew Mernin

Housebuilder Taylor Wimpey today said the UK housing market should avoid a ``severe" downturn as recent signs gave hope of a recovery.

The group said prices were now broadly flat, while its forward order book had soared 73% since the year end to £971m as buyers returned to the market.

Cancellation rates were below the long-run average and it is hoping to see an increase in selling prices over the second half of the year after keeping a tight control on its stock of unsold homes.

``Whilst wider economic conditions remain weak and rising unemployment could still have an effect on our markets, the severe downside scenarios for which we have been planning now appear less likely," said Taylor.

It added that despite some ongoing difficulties with mortgage availability and valuations, ``there are signs that the situation is beginning to improve".