Taylor Wimpey on track to hit expected profit but warns of post-Budget cost increases

Taylor Wimpey has said it is on track to hit its profit expectations for the year but warned of increasing cost pressures.

In a short trading update this morning the housebuilder said it expects to post operating profit of around £416m for the year to 31 December 2024 in line with its previous guidance.

It also said it completed 10,593 homes in the period, slightly more than the 9,500-10,000 range it previously forecast, although the total was marginally down on the 10,843 delivered in 2023. 

However, the housebuilder also warned that the Autumn Budget, which increased taxes on businesses included raised National Insurance employer contributions, will likely lead to cost pressures this year.

It said: “While price negotiations for 2025 are ongoing, we anticipate increased build cost pressure as a result of the changed economic backdrop, including as suppliers seek to factor in the impacts of the recent UK Budget.”

Taylor Wimpey did however welcome the government’s package of reforms to the planning system.

It said: “A well-functioning planning system is key to achieving the Government’s aims for growth in housebuilding.

“In December 2024, the government revised the National Planning Policy Framework (NPPF) which we see as a positive step for the industry.”

The government’s planning reforms includes the return of mandatory local housing targets and a new method to calculate them, along with measures to release green belt land for housing and proposals to bypass local planning committees where schemes comply with local and national policies.

>>See also: The 1.5 million-home question: Does the government’s planning reform programme add up?

>>See also: ‘We’re victims of short-term policy-making’: Interview with Taylor Wimpey boss Jennie Daly

Taylor Wimpey said its UK net private reservation rate increased from 0.62 homes per outlet per week to 0.75. Its order book stood at nearly £2bn, up from £1.8bn the previous year.

However, its UK average selling price on private completions dropped from £370,00 to £356,000 due to “weaker pricing” in the south of England “where affordability has been most stretched.”

Jennie Daly, chief executive of Taylor Wimpey, said: “In the second half of the year, we experienced weaker pricing in the south of England where affordability has been most stretched, compared to the north where we have captured some price growth. As a result, underlying pricing in the order book is around 0.5% lower year on year.”