Taylor Wimpey plc is encouraged by the housing market.

Housebuilder Taylor Wimpey plc held its Annual General Meeting today (19 June), revealing an encouraging outlook on the future of the housing market.

It suggested increasing stability in the UK housing market, with its net private reservation rate remaining at around 0.6 per site per week, prices broadly flat and cancellation rates below the long run average.

A statement read: “The level of unsold completed homes remains tightly controlled and we expect to see an increase in the average selling price of completions in the second half of this year as a result of planned mix changes.

“Our order book currently stands at £971 million, an increase of 73% from the year end position (31 December 2008: £562 million), which represents good progress in the current market conditions.”

The company said that it had strengthened its financial position significantly during the first half of 2009, having agreed the restructuring of its debt facilities and successfully completing its Placing and Open Offer to raise net proceeds of £510 million.

Whilst mortgage valuations and availability are still issues, there are signs that the situation is beginning to improve. It continued: “Whilst wider economic conditions remain weak and rising unemployment could still have an effect on our markets, the severe downside scenarios for which we have been planning now appear less likely to materialise.”

The company did stress, however, that it did expect to see the normal seasonal slowdown over the summer months.

After difficult trading conditions experienced in January and February, Taylor Wimpey’s markets in North America have improved in recent months, yet those in Spain and Gibraltar have remained weak  - confirming its plans to exit them.

Taylor Wimpey will issue its half year results for the period ending 30 June 2009 on Wednesday 5 August 2009.