Following on from our post yesterday which detailed how some contractors in London are no longer bothering to apply for tenders because of rising costs, Taylor Wimpey has announced their build costs have increased by 5.6% in 2014.


Although 5.6% average increase in costs is dramatic to any business, Taylor Wimpey has stated the upward pressure on costs in now showing signs of slowing down whilst the increases in average selling prices have more than easily offset the increasing land, labour and material costs.

The firm has released profit figures for the first 6 months of 2014 which attest to this, and demonstrate how strong the recovery has now taken hold in our industry but chief executive Peter Redfern was at pains to say securing supplies had been a main focus for the house builder this year.


Overall the profit made on the average house sold in 2014 was up 14% from £39,600 in 2013 to £45,300. The company has built 5,766 which is 11% up on the same period in 2013 and 42% were sold with the support of the government’s Help To Buy Scheme.


Redfern said: “Particularly in the second quarter, we have seen greater balance between the regions, with increases in sales prices and sales rates outside of the strong London and the South East markets.”


To back up these trends, we've seen this increasing demand for construction supplies over the same period, especially in demand for general building supplies, plumbing supplies and plastering supplies which all grew exponentially.


Although Taylor Wimpey are keen to return a dividend to their shareholders this should be seen a a strong indication the UK’s housing market is returning to a position of strength and should provide construction companies throughout the UK with confidence in building more houses to meet the nation’s housing needs.