FTSE 100 developer Taylor Wimpey posted a record sales rate this morning, but higher building costs weighed on the property giant's profit margins.
Taylor Wimpey’s share price dipped more than five per cent in early morning trading, with the firm revealing it had seen a bigger-than-expected rise in costs in the first few months of this year.
Shares in a number of rival major FTSE housebuilders have also edged down today, as Shore Capital said that it was "time to call time on our positive stance no the house builders after another native report on house prices".
Following a report from the Land Registry showing a seven year low in house prices during February, the broker has downgraded developers Barratt, Bovis and Taylor Wimpey from “Buy” ratings to “Sell” ratings, while all other firms received a “Hold” grade.
However, Taylor Wimpey struck a positive tone this morning, saying that it had made a good start to the year in spite of “wider macroeconomic uncertainty”.
It also said that the market for new build housing has remained stable in the first four months of 2019 with sales in the spring selling season at “encouraging levels”.
The blue-chip company added: “The underlying drivers of housing demand remained robust with continued good accessibility to mortgages and low interest rates for customers, combined with high employment levels.”
Today’s results follow recent controversy surrounding chief executive Pete Redfern, who has had to back down over his plans to buy a Taylor Wimpey luxury flat at a discount of £436,000.