Taylor Wimpey upbeat with profits to be at 'upper end' of hopes Operating profit is up over 40pc for 2012, and operating margins for the full year will beat the 11.1pc seen in the first six months, the company said in an update ahead of its March results announcement. Like most housebuilders, Taylor Wimpey is seeing margins benefit from the feed-through of land it bought at reduced prices following the housing price crash. However, the company also flagged an improving mortgage market after the Government's Funding for Lending Scheme (FLS) launched in the summer. "While mortgage availability remains restricted, some major lenders have recently reduced their rates and we hope that this trend will continue as the Funding for Lending Scheme gains traction," management said. Two weeks into 2013, consumer sentiment towards the housing market is more positive than we have seen in recent times. Both sales and selling prices rose over the past year, Taylor Wimpey reported, in line with recent updates from the sector. Completed sales of homes rose by 7pc to 10,886 for the year, while average selling prices for sales to private buyers increased by 6pc to £197,000, despite the wider market seeing average prices flat or falling. Taylor Wimpey said the price rise was driven by "the enhanced quality of our locations." Housebuilders have increasingly concentrated on the healthier southern housing markets, as well as shifting their focus from apartments to family homes. Analysts said the statement offered a slightly more upbeat tone than anticipated. The team at Jefferies increased their expectations for pre-tax profits from £169m to £178m for the year, against £84m for 2011. Shares in Taylor Wimpey however were down 1.4pc at 73.2p in morning trading after an initial spike, having risen substantially as the sector rallied in recent months.