Taylor Wimpey expects rise of profits.

The developer is selling almost half as many houses each week as it was at the beginning of the year, which reflected customers' response to «heightened levels of uncertainty». « We saw a fall-off in sales activities and an increase in cancellations». Daly added that her confidence in hitting this year's profit target comes from Taylor Wimpey having already exchanged 94 per cent of its planned sales. In comparison, the «vast majority» of the remaining 6 per cent of buyers have mortgage offers locked in. While rival builder Persimmon warned earlier this week that it has had to trim its house prices in response to the decline in demand, Taylor Wimpey is seeing «prices plateauing rather than going back».

Sam Cullen, a property analyst at Peel Hunt, said Taylor Wimpey's update was «more confident and less alarming» than Persimmon's. However, he conceded that the outlook for next year was «very uncertain». Taylor Wimpey shares rose 2p, or 2.1 per cent, to close at 98p. The FTSE 100 group, which has a stock market capitalisation of £3.4 billion, was created through the merger of Taylor Woodrow and George Wimpey in 2007. Over the past few months, its sales rate has dropped to 0.51 homes per site per week.

Cancellation rates have also ticked up to 24 per cent from 14 per cent last year.

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