Are Taylor Wimpey Shares Built For Success?
Very few companies founded by a 16 year old can claim to have the level of success that Taylor Wimpey has had. Since its inception in the 1920s, Frank Taylor’s company has gone on to become of the largest house building companies in the United Kingdom. Fitting for its size Taylor Wimpey shares are key feature of the London Stock Exchange and FTSE 250 Index. After merging with rivals George Wimpey, another historically relevant house building company, the company has gone from strength to strength.
It can be argued that no house building company had a better summer in 2014 than Taylor Wimpey. While others were struggling to gain traction, Taylor Wimpey posted strong half-year profits and seemingly found a winning formula. New government rules were hindering the business of their rivals, but Taylor Wimpey found that it was actually helping them thrive.
Their success has been solidified in two ways. Firstly, prices for new builds and overall sales rates were at the higher
…show more content…
These will come in the form of a price bubble, something that many analysts believe is on the horizon. The Bank of England’s financial policy committee introduced new measures in June 2014 that could come into play should house prices rise by more than 20% price to 2017. These regulations are strict in every sense of the word and follow the initial regulations that came in in April 2014, which in all reality should have restricted the performance of Taylor Wimpey. Within its trading update Taylor Wimpey moved fast to alleviate any concerns that may have been surrounding Taylor Wimpey shares by saying that they are “focused on the long term and delivering sustainable returns for our shareholders and so welcome sensible measures to reduce long-term risk and protect stability”. Whether this continued ‘role with the punches’ attitude will be a success moving forward remains to be