HOUSEBUILDER Taylor Wimpey today said underlying sale prices were up by around 4% following "gradual improvements" in mortgage availability and buyer confidence.
It has already achieved 99% of targeted sales for the first half of the year and 74% for the full-year as forward orders pick up.
Taylor said that total prices leapt by an estimated 9% since the start of the year, although this was partly due to a change in the mix of property types sold, which accounted for around 5% of the uplift with the remaining 4% from underlying price rises.
It added that the market should weather economic and political headwinds.
"We are encouraged by the ongoing signs of improvement across our main markets," said Taylor.
"Although economic and political risks remain in the UK, we believe that the underlying shortfall of new build housing and the strong levels of demand will continue to underpin the market."
Its upbeat comments came as lender Nationwide revealed a 1% rise in house prices during April, leaving the average home costing £167,802 and taking annual price growth into double figures for the first time in nearly three years.
Nationwide said double-digit annual price inflation was unlikely to last throughout 2010 amid fears that impending public spending cuts and tax hikes will halt further advances.
However, Taylor Wimpey’s shares rose 3% today as investors cheered hope the housing market will ride out the challenging conditions.
The group did, however, warn that a shortage of consented land may constrain a recovery in the volumes of sales