Housebuilder Taylor Wimpey upgrades profit guidance
Housebuilder Taylor Wimpey has upgraded its profit guidance for the year as the firm heralded positive growth in the UK housing market.
The company also said that it will pay out a bigger dividend to shareholders in 2017, upping the award 26% to 13.8p a share, totalling £1.3 billion.
Taylor said it would pay a special £300 million dividend in July 2017 and increase its ordinary dividend.
The company said: "The UK new build housing market remains very positive across most of our geographies, with a healthy and controlled lending environment providing good accessibility to mortgages at competitive rates.
"Consumer demand and confidence remain high. In central London, the market continues to be stable."
Shares rose 6% on the news to 196p, and City analysts Liberum upgraded Taylor's stock from sell to hold, saying: "We now see little downside, and upgrade our recommendation from sell to hold."