As demand for vacation homes in the sun soars, Britons are flocking to Spain to buy second homes.
Taylor Wimpey, a housebuilder, has reported “excellent” results for 2021, citing rising demand in Spain.
The developer expects strong demand for homes in 2021, thanks to low mortgage rates and the stamp duty holiday.
The relaxation of travel restrictions in Spain has resulted in a surge in prospective buyers looking for a second home in the sun.
According to Taylor Wimpey, demand has increased, particularly in the second half of 2021, and the company is now planning to increase construction as property prices in the country rise.
Taylor Wimpey completed 215 homes in 2021, with an average selling price of £348,000 (€417,000), up from 190 in 2020, when the average selling price was £313,000 (€375,000).
Its order book stood at 324 homes at the end of 2021.
The company’s Spanish arm recently announced that some months in the second half of 2021 saw reservation numbers unprecedented in the 64 years the company has been building in Spain.
With Taylor Wimpey ramping up production, demand in the UK has remained high.
In 2021, home completions in the United Kingdom increased by 47%, with 18% of new homes being affordable.
During this time, average selling prices increased by 3%, fully offsetting rising construction costs, according to the firms.
However, this is still less than the increase in house prices in many parts of the country, with the UK House Price Index indicating a 10.2 percent increase nationally in 2021.
Pete Redfern, Taylor Wimpey’s Chief Executive, stated, “Looking ahead, we are well positioned to deliver against our targets.”
“The future looks bright, and Taylor Wimpey is in a particularly strong position.”
“Over the long term, we remain laser-focused on delivering sustainable growth, strong profitability, and increased cash returns to shareholders.”
The company is now looking to return cash to shareholders, possibly through a share buyback, in which it would buy its own shares and increase the value of those still held by investors.
A tougher Government stance on the cladding crisis has presented a recent challenge to UK housebuilders, with Housing Secretary Michael Gove warning developers that they will have to pay to fix issues.
Mr Gove has set a deadline of early March for the industry to agree on a fully-funded plan to repair the unsafe cladding on the affected buildings.
Taylor Wimpey said in a trading statement.
BY PASCAL NALAT ON JANUARY 17, 2022 Brinkwire