Homebuilder Reveals How Virus Battered U.K. Property Sales

(Bloomberg) --

The stark impact of the coronavirus lockdown on Britain’s housing market has been laid bare by one of the country’s biggest home builders.

Taylor Wimpey Plc, the nation’s fourth biggest by market value, said its rate of net sales plunged by more than 27% in the year through May. That shows the number of homes sold by the company at each of its sites, each week. The firm also said it halted new land purchases in the early part of the lockdown, according to a statement on Friday.

Britain’s housing market was effectively frozen in March as the government banned home viewings to halt the spread of the coronavirus. Most builders also shut down construction temporarily as they sought to develop safe working practices on site. The government has since eased restrictions, allowing a cautious return for home sales.

The builder is now seeing signs of a possible bounce back. The company has reopened sales offices in England to appointments and has seen a surge in appointments. Traffic to the company’s website is up almost a third from a year ago, the company said.

The company has also sought to lock in new deals for land, taking advantage of uncertainty in the market. It’s not the first time Taylor Wimpey has sought to benefit from market disruption. Cheap land acquired in the aftermath of the global financial crisis helped fuel record profits for homebuilders when the sites were eventually developed for sale.

Overall the company’s order book of agreed sales that have yet to be completed was up about 10.5% at the end of May, despite the decline in sales rates. That’s because restrictions imposed during the lockdown have delayed transactions completing.

In a separate statement, Taylor Wimpey said it had appointed PriceWaterhouseCoopers LLP as its new auditor, replacing Deloitte LLP.

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