As ever with housebuilders, we return to the same question: when and how could it all go wrong? Housing is a cyclical industry and one day the cycle will turn, but it is not immediately obvious why or when. One constraint is the cost of labour and of employing subcontractors, but, according to Pete Redfern, the chief executive of Taylor Wimpey, the industry seems to be coping well enough.
Labour costs are expected to rise by 3 or 4 per cent this year, but this is below the 5 per cent at which the cost of houses has been rising. Taylor Wimpey seems able to continue to increase the number of homes it builds by the 7 per cent they were up last year.