Taylor Wimpey and Redrow report trading uplift

House builders Tayor Wimpey and Redrow have both reported rising prices and stronger sales than expected through the usually slower summer sales months of July and August.

In upbeat trading statements both house builders reported selling prices ahead of expectations and significant uplifts in reservations.

Taylor Wimpey said the average selling price for private homes in the order book is currently around 9% higher than the £163,000 the group achieved during the first half as the market continues to be “significantly better” than last year.

The builder opened 22 more sales sites in the second half, after a typical summer slowdown did not emerge. Cancellation rates have fallen to 16%, from 19% in the first half of its financial year.

"This is a result of planned improvements in our mix towards housing rather than apartments, as well as price increases achieved over the last three months," the statement said.

It added: "The autumn selling season has been reassuring, although sustaining the current recovery will be dependent on improvements in mortgage availability and the wider economy."

Taylor Wimpey said the value of its current order book now stands at £1bn compared with 1.06bn last year. Net debt is down from £1.87bn last year to £860m, with the company now targeting end net debt of below £800m.

Meanwhile, Redrow, which has moved its focus to building family homes as well, said the prices it achieved were slightly higher than anticipated and said it expects those to rise more as family homes came to the market.

Total reservations climbed 47% also ahead of expectations. But Redrow said surveyors' valuations remained a sticking point.

Redrow said that it expected to raise £150m from its rights issue, which taking into account the acquisition of Harrow Estates, would see net debt fall to £65m. The firm is currently selling from 74 sites.