Hot on the heels of Persimmon saying things were slowly looking up for home sales, Taylor Wimpey has followed suit by reporting signs of improving customer confidence.
A decline in mortgage rates will have certainly helped, yet that might not stay the case for long if the Bank of England decides to push up interest rates once again next month.
AJ Bell’s Russ Mould said: “It’s clear that first-time buyers are struggling to get on the ladder given the higher cost of borrowing and less choice on home loans, so the property market is by no means bouncing back to rude health.
“Kitchen seller Howdens Joinery has shown that life is tough out there, having reported a weaker than expected start to 2023. Brick maker Ibstock has also reported a subdued demand environment but managed to achieve better than expected earnings for the first quarter thanks to keeping a keen eye on costs and good business execution.
“For Taylor Wimpey, it means cutting back on land buying, thinking twice about spending on stuff that isn’t essential to the day-to-day business, and staying focused on build quality while accepting the uncertain backdrop could continue for the rest of the year.”
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