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The UK’s mortgage famine has led Taylor Wimpey to warn of difficult times ahead for the house building group.
In a trading update, the company reported that since January, its order book for new homes has declined 26% in value compared with the same period of 2007.
In a previous update last month, a 20% fall was announced and the revised figure takes into account the lower number of homes the group expects to sell and a downward adjustment on price.
Taylor Wimpey’s chief executive, Peter Redfern, had little good news for shareholders who were told that the outlook for 2008 has deteriorated since the beginning of the year, with sales remaining significantly below 2007 levels and a rise in the number of cancellations.
As mortgage lenders continue to increase rates and withdraw products, Mr Redfern indicated that he is not expecting the situation to improve in the months ahead.
The company, which is the UK’s biggest housebuilder, was created by the £5.5 billion merger of Taylor Woodrow and George Wimpey last year.
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