UK housebuilder Taylor Wimpey said it was in a strong position as it entered 2014 as a result of the market recovery, but said it expected to increase housing sites only modestly during the year.
Taylor said there was a "meaningful" improvement in market conditions in 2013 after several years of a declining or flat market, underpinned by solid consumer confidence and Government sweeteners such as Help to Buy.
Total home completions increased by 7% to 11,696 from 10,886 in 2012, of which 18% were affordable housing completions, matching last year's level.
Average selling prices on private completions increased by 7% to £210,000 as a result of a shift to better quality locations and price rises matching inflation.
"In current market conditions, we expect to be able to deliver further increases in the number of completions and average selling prices in 2014," it said.
It said it was starting 2014 in an excellent position with an order book of 6,627 homes versus 5,966 a year ago.
Taylor said the land market was offering attractive opportunities but warned that it had seen initial signs of tightening in some local markets which we continue to monitor very carefully.
But it said it was entering the new year with fewer housing sites than last year due to faster outlet closings in a healthier market and the time taken to meet additional planning permission requirements.
"We expect total outlets to modestly increase in 2014 as we continue to focus our efforts on getting our newly acquired sites and phases opened in an efficient and timely manner."
Market analysts have warned that rising prices could lead to a house price bubble in the UK unless housebuilders manage to significantly increase supply, with some saying they are unlikely to meet Government targets of building more than 200,000 homes a year any time soon.
In its Spanish business, it increased its order book to 195 homes from 53 a year ago, made a small profit and said it believed prices would increase, although it added: "Customer confidence still remains subdued on the whole and in certain locations continues to be extremely challenging."
It said group operating margins would be towards the upper end of hopes for the year to December 31st.
Deutsche Bank analysts forecast a 10% increase in revenues for the final six months and a 40% rise in full-year pre-tax profits to £292m.
Taylor said the level of consumer confidence in housing as it entered 2014 had improved across most of its main markets and in the opening weeks of 2014, interest levels, visitors and reservations have remained high.