Trading Statement

Taylor Woodrow PLC
10 January 2002

EMBARGOED UNTIL 7.00AM - THURSDAY 10 JANUARY 2002

                              TAYLOR WOODROW plc

                                Trading Update

*        Record high UK housing forward orders of £180m

*        Housing markets in Toronto and Florida buoyant

*        Construction order book £583m, up 3% on 2000

*        Balance sheet to be strengthened by sterling bond issue

*        Board succession secure with appointment of Iain Napier as CEO
         Designate

*        Taylor Woodrow comfortable with market expectations for 2001

Commenting on trading through 2001, Keith Egerton, Chief Executive, stated:

'We are confident that our results for the year to 31 December 2001 will be in
line with market expectations. Bryant Homes is now fully integrated and
delivering the promised synergies. The housing markets in Florida and Toronto
remain buoyant, our focussed construction division continues to make
significant progress, and the balance sheet position of the Group is very
strong.

Although in the current uncertain economic environment it is difficult to
forecast with confidence the short to mid term prospects for the business
sectors and markets in which we operate, our businesses are well positioned to
deliver another year of progress in 2002.'

The full trading statement is attached.

For further information please contact:

Investor Relations:
Jonathan Murrin, Investor Relations Manager
Taylor Woodrow plc                                     Tel: [phone]

Media Enquiries:
Miranda Bellord, Public Relations Manager
Taylor Woodrow plc                                     Tel: [phone]

Scott Fulton/Peter Otero
Financial Dynamics                                     Tel: [phone]

Taylor Woodrow plc, the international housing and development Group, today
issued an update on trading for the year ended 31 December 2001.  Preliminary
results will be announced on 19 March 2002.

Taylor Woodrow also announces that it is meeting with 'sell side' analysts on
the 17 January 2002 in order to update this audience on the structure of the
business.  This will include a visit to one of the Group's London sites.
Material from this meeting will be available on the Company's website,
www.taylorwoodrow.com.

Introduction

The Board is confident that the results for the year to 31 December 2001 will
be in line with market expectations.

The integration of the Bryant Group, acquired in March last year, has
radically re-shaped the financial performance and corporate structure of
Taylor Woodrow.  The quality and size of the Bryant business adds an important
new dimension to the Group, with housing now generating over 80% of Group
profits.

The financial position of the Group remains very strong and Taylor Woodrow is
well positioned to take advantage of investment opportunities that will arise
across its key markets, to secure future earnings growth.

The Group's financial strength will be reinforced by a sterling bond issue
which is currently being brought to market, lead managed by UBS Warburg and
HSBC.  It is expected that this funding exercise will be completed during
January.

UK Housing Outlook

In UK housing, the market remains positive and, following a short period of
uncertainty after 11 September, visitor numbers and reservations for Bryant
have recovered to trend levels that are above those of the previous year. This
has been helped by the Group's limited exposure to the central London market
where there is evidence of price weakness. At the end of 2001, Bryant Homes
carried £180m of forward orders, an increase of over 25% in the forward sales
position of the combined Group, compared with the previous year.

The full integration of Bryant was successfully completed in October 2001 with
synergies in excess of £15m secured. The quality of the UK housing business as
it enters 2002 is strong.  On a pro-forma basis the combined business achieved
5,790 homes sold in 2001, an increase of 4.7%, with a forward landbank of 3.5
years.

In response to Government planning policy (PPG3), demographics, and the
changing lifestyle aspirations of consumers, the housing market in the UK is
changing radically.  Combining its traditional strengths in property
development, construction and engineering with this new depth of housing
expertise, Taylor Woodrow is well positioned to take full advantage from these
market changes.

The Group with its broad range of skills and risk management experience is
delivering large-scale complex and innovative re-generation schemes, as an
integrated developer.

North America

The high value housing market in California, having suffered early in the year
from the weakness in the Technology sector, has yet to recover from the
further fall in US consumer confidence resulting from the events of 11
September.  This market has seen price reductions of up to 20%.  Taylor
Woodrow has taken action during the course of last year to reduce its exposure
to the high value end of the Californian market, re-positioning to lower price
points.

The housing markets in Toronto and Florida, however, have remained buoyant,
and Taylor Woodrow's expectation for the North American business as a whole is
for only a marginal reduction in earnings in 2002, as consumer confidence and
economic conditions slowly improve.

Over the last 20 years Taylor Woodrow has built up an enviable presence within
the North American market, establishing leading market positions which have
delivered consistent value to shareholders.  The Group is well positioned to
benefit from the recovery in these markets in 2002.

UK Property

The UK property market generally continues to experience a lower level of
business activity, vindicating the Group's decision to further reduce its
investment property portfolio during the early part of last year.

In November, following an international marketing exercise, it was announced
that the sale of the St Katharine's Dock development would not proceed.
Whilst it remains a strategic priority to withdraw from the investment
property market, Taylor Woodrow will only do so when it is in the best
interests of our shareholders.

Construction

The construction business has had a good year benefiting from the shift of
emphasis from general contracting to a streamlined and focussed service
provider.

The bottom line performance has been improved through select blue chip client
relationships, providing added value support through partnerships, PFI and
Facilities Management, and finally, by major development work for other parts
of the Group.

Outlook

Bryant Homes enters the new year with one of the strongest forward order book
positions in its history.  The underlying UK housing market fundamentals
remain favourable, supported by low interest rates, stable affordability
indices, and high employment.

In North America, our Florida and Toronto operations continue to enjoy buoyant
demand, with good forward order books.  Our decision to reposition the
California business early last year has been justified by the continuing
subdued nature of that market.

Although in the current uncertain economic environment it is difficult to
forecast with confidence the short to mid term prospects for the business
sectors and markets in which we operate, our businesses are well positioned to
deliver another year of progress in 2002.



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