Trading
UK’s Taylor Wimpey enjoys strong demand, plans share buyback
Published by maria gbaf
Posted on January 18, 2022
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by maria gbaf
Posted on January 18, 2022
2 min readLast updated: January 28, 2026
Taylor Wimpey plans a share buyback amid strong housing demand and a robust 2022 order book, despite cladding cost challenges.
By Aby Jose Koilparambil
(Reuters) -Taylor Wimpey, the UK’s third-largest housebuilder, on Monday joined bigger rival Persimmon in highlighting sustained demand in the housing market, and said it was planning to buy back shares.
Cheap loans and a pandemic-driven preference for larger homes among buyers have helped housebuilders project a brighter outlook, while pushing house prices to record highs and helping cushion the impact of higher building costs.
FTSE 100-listed Taylor Wimpey said it expects annual financial results in line with its expectations and has a strong order book for 2022. Its shares rose nearly 2% in morning trade.
The High Wycombe, England-based firm, which also has a presence in Spain, said total UK home completions surged 47% to 14,087 units in 2021.
The company said it was in talks with building owners to undertake cladding-related work at some properties. Shares in UK homebuilders plunged last week when Britain ordered firms to pay around $5.4 billion to help remove dangerous cladding from buildings.
“Whether these results can result in a sustained share price recovery for Taylor Wimpey, which suffered a sharp sell-off after the cladding announcement, will depend on whether it can continue to offset rising costs and maintain demand,” said Adam Vettese, an analyst at investment platform eToro.
Taylor Wimpey, which has been more active than other housebuilders in buying land during the pandemic, said it would reveal how much it made in returns for 2021 in March.
The company added that its intention was to return excess cash to shareholders through a share buyback.
Britain’s No. 2 homebuilder Persimmon last week forecast higher profit margins for fiscal 2021, while smaller firms MJ Gleeson and Vistry reported healthy trading on robust demand. Countryside Properties unexpectedly reported a weak quarter.
($1 = 0.7314 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips and Ed Osmond)
The article discusses Taylor Wimpey's plan for a share buyback amid strong housing demand and financial outlook.
Taylor Wimpey's UK home completions surged 47% to 14,087 units in 2021.
Taylor Wimpey faces challenges related to cladding costs and maintaining demand amid rising costs.
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