Taylor Wimpey has posted a 22 per cent enhance in pre-tax revenue however warned that completions will tumble this 12 months as increased mortgage charges have an effect on demand.

Full-year outcomes to the tip of 2022 present revenue earlier than tax was £827.9m, up from £679.6m final 12 months, on the again of improved gross sales and indicators of stabilised buyer confidence.

Nevertheless, the homebuilder stated it anticipated completions this 12 months to be between 9,000 and 10,500 – down from 14,154 final 12 months – and these can be weighted in the direction of the second half of 2023. Its reservation charge may even be “considerably decrease” than in earlier years.

“Whereas it’s encouraging to see an uptick in gross sales and ongoing strong buyer curiosity in our properties, as beforehand introduced, our reservation charge is considerably decrease than lately as affordability issues weigh, notably for first-time patrons, and we’ve got mirrored this in our construct programmes for the 12 months,” it stated.

Earlier this week, pre-tax revenue at rival Persimmon fell by 24 per cent, reflecting the affect of a £275m post-Grenfell constructing security provision.

In its outcomes, Taylor Wimpey stated it had already dedicated £245m to cladding remediation and was now in closing discussions with the Division for Levelling Up, Housing and Communities, with a view to signing the long-form settlement which might make the ideas of the Constructing Security Pledge legally binding.

Levelling Up secretary Michael Gove has informed builders they’ve till 13 March to signal a cladding remediation pledge or threat being frozen out of the market.

Taylor Wimpey chief government Jennie Daly (pictured) stated the corporate had delivered a powerful monetary and operational efficiency in 2022 with full-year working revenue in keeping with expectations.

“We’re notably happy to have delivered a powerful working revenue margin because of tight operational controls and worth self-discipline,” she stated. “In a 12 months marked by two distinct halves, we acted rapidly and decisively to handle quickly altering market situations within the second half of the 12 months and continued to concentrate on operational excellence and effectivity.”

Whereas the weaker financial backdrop continued to affect the near-term outlook, Daly claimed that buyer curiosity in Taylor Wimpey properties remained excessive and, though it was nonetheless early within the 12 months, buying and selling had proven some indicators of enchancment in contrast with the final quarter of 2022.

“Trying ahead, we’ve got a powerful proposition that’s clearly recognised and valued by our prospects, supported by our sharp operational focus and extremely skilled groups,” she stated.