Taylor Wimpey, the result of the merger of Wimpey Homes and Taylor Woodrow in 2007, is expecting more struggles in the house building sector. CEO Pete Redfern explained that the merger led to a complex debt structure which has caused some financial issues within the organisation.
Taylor Wimpey have sold off their North American business to help pull in their structure and build some cash reserves. The deal was valued at around £1 nillion.
The new focus in the UK is on quality over quantity. Taylor Wimpey will be building homes with higher quality fittings and features to attract the wealthier home owners. Pete Redfern explains that he wants Wimpey Taylor to be the best housebuilder and is not interested in simply being the biggest house builder.
Quality also means winning the best sites to build on to ensure that the overall housing development is extremely desirable for new home owners.
Taylor Wimpey are also improving the whole client and partner services of their operations with an improved website portal.
Market conditions continue to be very slow so Taylor Wimpey are also looking to invest in long term projects which they can develop over time to provide a great return.
25% of Taylor Wimpey’s business is in London and the South East and so it plans to expand more into other British markets to spread its range and risk.
The market is still the slowest it has been since 1920. People are simply not looking to move house. Many people are sitting on negative equity as some house prices have fallen. Mortgages continue to be hard to agree for anyone but those in permanent and very well paid jobs.
Pete Redfern recently spoke with the FT, you can find the full interview here: video.ft.com/v/1091288197001/Pete-Redfern-of-Taylor-Wimpey-full-interview (registration required).