9 (Reuters) - British housebuilder Taylor Wimpey (TW.L) said it had seen enduring stability in the housing market in the past six weeks, and it might increase the number of new sites in the second half, lifting shares in the sector."We have been encouraged by the ongoing stability in the UK housing market, but remain cautious with regard to the prospects of the wider economy and, in particular, the potential impact of rising unemployment," Taylor Wimpey said on Friday.
Its shares, which had fallen over 20 percent in the past fortnight and have underperformed the stock market .FTAS by 11 percent over the past year, were up 7.3 percent at 33.25 pence at 0740 GMT. Other housebuilders' shares .FTASX3720 also rose.
KBC Peel Hunt analyst Robin Hardy said Taylor Wimpey stock could bounce after a sharp recent correction, but it "cannot shake off the wider issues of unemployment and a poor lending environment. The pricing environment is not going to improve any time soon, and this is the worst scenario for new build".
The number of Britons claiming jobless benefit rose less than expected in May but still enough to push the unemployment rate to its highest in more than a decade. [ID:nLH826126]
Recession and rising unemployment have led to house prices falling about a fifth from their peaks in the autumn of 2007.
But prices in May rose 2.6 percent, the biggest monthly gain in 6-1/2 years, according to the Halifax, Britain's biggest home loan lender, while the Nationwide Building Society reported a 1.2 percent rise for the month. [ID:nL4210746] [ID:nLAG003459]
Taylor Wimpey said its current order book was 971 million pounds ($1.59 billion), up 73 percent from its end-2008 level.
"Our net private reservation rate remains at around 0.6 per site per week, with prices broadly flat and cancellation rates below the long-run average," Taylor Wimpey said, adding: "The severe downside scenarios for which we have been planning now appear less likely to materialise".
For further details visit as : www.reuters.com/article/rbssHomebuilding/idUSLJ16370720090619
Its shares, which had fallen over 20 percent in the past fortnight and have underperformed the stock market .FTAS by 11 percent over the past year, were up 7.3 percent at 33.25 pence at 0740 GMT. Other housebuilders' shares .FTASX3720 also rose.
KBC Peel Hunt analyst Robin Hardy said Taylor Wimpey stock could bounce after a sharp recent correction, but it "cannot shake off the wider issues of unemployment and a poor lending environment. The pricing environment is not going to improve any time soon, and this is the worst scenario for new build".
The number of Britons claiming jobless benefit rose less than expected in May but still enough to push the unemployment rate to its highest in more than a decade. [ID:nLH826126]
Recession and rising unemployment have led to house prices falling about a fifth from their peaks in the autumn of 2007.
But prices in May rose 2.6 percent, the biggest monthly gain in 6-1/2 years, according to the Halifax, Britain's biggest home loan lender, while the Nationwide Building Society reported a 1.2 percent rise for the month. [ID:nL4210746] [ID:nLAG003459]
Taylor Wimpey said its current order book was 971 million pounds ($1.59 billion), up 73 percent from its end-2008 level.
"Our net private reservation rate remains at around 0.6 per site per week, with prices broadly flat and cancellation rates below the long-run average," Taylor Wimpey said, adding: "The severe downside scenarios for which we have been planning now appear less likely to materialise".
For further details visit as : www.reuters.com/article/rbssHomebuilding/idUSLJ16370720090619
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