Taylor Wimpey’s operating profits rocketed 54% because there are simply not enough properties in Britain to sate rampant demand.
The UK housebuilder revealed in its 2014 results statement that annual pre-tax profits also soared by two thirds to £450m before one-off deductions.
It sold 12,454 houses for an average price of £213,000, up from £191,000 in 2013.
“We are currently operating in a housing market underpinned by a significant structural demand and supply imbalance,” said Taylor Wimpey in its results statement. “Housing remains high on the political agenda with recognition of the importance of housebuilding to the economy and the need for more quality homes in the UK by all of the main political parties.”
“Whilst there remains uncertainty around the outcome of the General Election in May, consumer confidence remains solid and is supported by healthy underlying demand, low interest rates and high levels of employment. We therefore consider that the UK near term market risk is low.”
On top of that, 2015 is shaping up to be a lucrative year for the housebuilder too.
It has already sold 51% of its private completions as of 1 March 2015. It has a total property order book worth £1.65 billion.
“2014 was an excellent year for Taylor Wimpey, delivering a 54% increase in operating profit whilst contributing £300 million to communities via planning obligations, providing key infrastructure, education and affordable housing,” said Pete Redfern, CEO of Taylor Wimpey in the results statement.
“The beginning of spring selling season has seen trading at the better end of expectations. Customer confidence is high with good levels of employment and an affordable mortgage environment. The UK housing market remains healthy and we are very confident in our ability to maximise returns on our investments whilst continuing to invest in the underlying quality of the business.”