Trading Statement

Taylor Woodrow PLC
08 January 2004

Embargoed until 7.00am - Thursday, 8th January 2004


                               TAYLOR WOODROW PLC

                               Trading Statement


* UK Housing completions 7,704 up 24% on last year

* North American Housing completions 2,786, up 52% on last year

* Housing order book £1,077m, up 70% on last year

    - UK Housing £575m, up 121%

    - North American Housing £444m, up 35%

    - Spanish and Gibraltar Housing £58m, up 26%

* Integration of Wilson Connolly proceeding to plan

* £21m of cost savings from realignment of UK business achieved


Commenting on trading through 2003, Iain Napier Chief Executive, stated:

'Whilst the UK housing market returned to more normal trading conditions in 2003
the second half remained good and we have kept to our strategy and achieved
growth both organically and by acquisition. The North American housing market
has continued to be extremely attractive during 2003. We are confident that our
results for the year to 31 December 2003 will be in line with the Board's
expectations.'

'With strong order books and the cost benefits available from the integration of
Wilson Connolly we start the year with confidence of further progress in 2004.'

The full trading statement is attached.

Notes

1. Taylor Woodrow is holding a conference call at 8am today for analysts and
investors. Please call 0800 953 1444 - chair person is Jonathan Murrin.

2. Estimated consensus 2003 PBT, on a pre exceptional, post goodwill basis is
£294.8m with a high of £323.9m and a low of £269.0m.

Taylor Woodrow plc, the international housing and development company, today
issued an update on trading for the year ended 31st December 2003. Preliminary
results will be announced on 2 March 2004.

Introduction

2003 has been another good year for Taylor Woodrow with housing now representing
over 90% of operating profits.

UK Housing

The UK housing market remains robust although we have seen a return to more
normal conditions. The interest rate rise in November last year had no
discernible effect on demand for our homes. Historically low interest rates
continue to underpin affordability. However planning delays have continued to
frustrate the industry.

Taylor Woodrow participated in the Barker Review and welcomed its interim report
that was published last month. We are supportive of initiatives to narrow the
gap between demand for new homes and housing supply through a reform of the UK
planning regime to provide greater certainty and speed in the planning process.

During 2003 Bryant Homes completed 6,104 homes (2002: 6,238). For the same
period, Wilson Connolly completed 3,837 homes (2002: 4,002). 1,600 of these
completions were post acquisition.

In total therefore, Taylor Woodrow completed 7,704 homes in the UK Housing
business, an increase of 24% on the prior year.

At the start of January 2003, Bryant Homes was selling from 112 sites. By the
year end we were selling from 207 sites of which 89 sites came from Wilson
Connolly. We plan to increase the number of sites in the first quarter of 2004
by around 10%.

Average sales prices for the Taylor Woodrow business were £184k - up 1% on last
year reflecting a geographic switch from the South to the North and a 6%
reduction in the size of the average home sold. Operating margins have improved
over 2002.

For the period of Taylor Woodrow ownership, Wilson Connolly average sales prices
were £172k - up 2% on last year.

Integration of the two UK housing businesses is now well advanced. From the
start of 2004, UK housing has been managed as one combined business operating
across eleven regions. All appointments to senior management positions were
confirmed before the end of December with four of the eleven regional managing
directors appointed from former Wilson Connolly personnel.

The first of ten office closures will start at the end of February and the last
will finish by the end of April.

We remain firmly on track to realise the synergies projected at the time of the
acquisition.

Our UK Housing forward order book, at 31 December 2003, was £575m - an increase
of 121% on the same time last year. The Bryant Homes order book increased by 31%
from £260m to £340m.

North America

Total home completions for 2003 for our North American business were 2,786, up
52% on 2002 with all regions growing volumes.

Average sales prices for home completions were reduced by 12% to £208k
reflecting the continuing repositioning of the business to the middle market in
line with our previously announced strategy.

Our California business has performed well. Arizona has exceeded expectations in
its first full year of operation. In Canada the low-rise market remains buoyant,
however, after several years of strong growth, high-rise activity has moderated
somewhat. In Texas, we recently acquired two sites in Houston and the market
remains good. In Florida, the market remains robust and we continue to perform
well. As an example, we successfully launched our first beach front high rise
condominium project with contracted sales of £75 million representing 76% of the
project achieved prior to the commencement of construction.

Our forward order book at 31 December 2003 was £444m - an increase of 35% (51%
in US dollar terms) on the same time last year. Our North American business is
very well placed to deliver further progress in 2004.

Spain and Gibraltar

Our housing operations in Spain and Gibraltar have continued to perform well
with 328 home completions, up 12% on last year. Average sales prices were £182k
- up 19% on last year. The forward order book at 31 December 2003 was £58m, 26%
higher than the same time last year.

Commercial Property

Our UK commercial property business had a quiet year as previously forecast.

Construction

Construction has continued to perform steadily in 2003 and enters 2004 with a
forward order book of £785m, up 17% on last year. Internal work represented 26%
of total work performed, which is in line with the company's strategy of using
Construction's expertise in direct support of our UK housing business.

Cash Position

At the end of the year, the Taylor Woodrow cash and gearing position was in line
with expectations at the time of the Wilson Connolly transaction.

Summary

Taylor Woodrow has traded in line with the Board's expectations.

The company starts 2004 with strong order books in all of our businesses and
remains firmly on track to deliver the benefits identified in the acquisition of
Wilson Connolly.

                                     -ends-

For further information:

Taylor Woodrow Investor Relations:
Jonathan Murrin - Tel: [phone]

Taylor Woodrow Media Enquiries:
Ian Morris - Tel: [phone]

Maitland Consultancy:
Angus Maitland - Tel [phone]
Emma Burdett - Tel [phone]




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