Taylor Wimpey bats off inflation concerns as home prices spiral in the housebuilder’s favour
Taylor Wimpey has continued to bat off concerns surrounding inflationary headwinds, as the housebuilder agrees to spend another £80m on fixing its fire-risk cladding.
The FTSE 100 firm signed the government’s fire safety pledge earlier this month, which means it must fix all cladding issues on buildings over 11 metres, which were build in the last 30 years.
With the latest bout of cash earmarked for the fire safety works, which have been subject to fierce campaign following the Grenfell tragedy, Taylor Wimpey has spent £245m on the remediation.
The housebuilder completed 10,957 homes in the first quarter, a little under its figure for the same period in 2021 of 10,995.
Spiralling house prices have meant that Taylor Wimpey, one of the largest housing developers in the country, has been able to offset the soaring costs of labour and raw materials.
Taylor Wimpey’s total order book value stood around £2.9bn, as of mid-April, up more than £100m in comparison with the same period last year.
Shareholders are in line to receive £150m via a share buyback scheme which is underway, having returned £75m already. Stakeholders are also set to receive a dividend of 4.44p per share on 13 May.