Taylor Wimpey plc trading statement

Taylor Wimpey's Q1 trading update today was certainly a breath of fresh air for investors, as the narrative of a housing market crash is being rebuffed day by day. The net private sales rate continues to recover while build cost inflation is expected to have peaked. As such, it's no surprise to see the developer maintain its full-year guidance. And unlike several of its housebuilding competitors, Taylor Wimpey opted to increase its dividends, which will be music to dividend investors. The bottom of the housing market decline could be in very soon, which will make some room for Taylor Wimpey to impress going into the last three quarters of the year.

With demand seemingly picking up in recent weeks, Taylor Wimpey are painting a slightly rosier picture than when they posted their annual results in early March. Then, they stated completed transactions would fall by about a third this year, with reservation rates 'significantly lower'. The key driver of the housing market is first-time buyers. Until property prices fall by a further 10-20%, a lack of mortgage affordability will keep demand subdued.