In addition to cost reduction and management programmes already in place, the firm has undertaken a detailed review of its organisational and cost structure to ensure that it continues to operate efficiently in a changing market.

Changes also include a rationalisation of its London operating structure to focus on affordable price points that meet the affordability needs of Londoners, and a series of reductions in central and business unit overhead levels.

The £10m efficiency drive will generate annualised savings in the region of £15m from 2021, it added.

As a result of equity raised in June, Taylor Wimpey said it can now “confidently and assertively” re-enter the land market at the end of Q2 and take advantage of increased opportunities. Since then, it has agreed terms on and authorised c.£826m of gross land purchases, comprising 70 sites and c.14,500 plots.

“Combined with the strength of our underlying landbank, these sites give us increased confidence of delivering our medium term operating margin target and will enable us to accelerate our volume growth from 2023 onwards,” the company said.

“We are now safely operating at close to normal capacity with a product profile well positioned to meet customer demand,” chief executive Pete Redfern said. “The trading backdrop remains resilient and the quick recovery of the housing market is testament to the underlying strength of demand and supportive lending backdrop.”

He added: “We have made good progress in the second half of the year to date, maintaining a robust sales rate and building a strong forward order book.  Looking ahead, we are on track to deliver full year 2020 results towards the upper end of market expectations and with strong operational momentum and positive forward indicators, our confidence in 2021 has increased. As a result, assuming the market remains broadly stable, we expect to deliver 2021 operating profit materially above the top end of the current consensus range.”