Taylor Wimpey: Housebuilder holds guidance but warns of cost pressures
Taylor Wimpey has said it’s on track to meet its profit target for the year, but echoing a similar warning from rivals Persimmon and Vistry, said rising costs could be a headwind to growth in 2025.
The FTSE 100 firm expects an operating profit of £416m for 2024, down from £470.2m the year prior, according to a trading update on Thursday.
It comes as UK housebuilders grapple with interest and mortgage rate concerns, coupled with a big hit from the new levies announced in the Autumn Budget.
Shares in Taylor Wimpey have fallen over six per cent this year to date.
The Buckinghamshire-based firm said total completions over the 12 months were 10,593, down from 10,848 in 2023. UK home completions reached 9,972, with some 2,178 made up of affordable homes.
UK average selling prices on private completions declined year-on-year from £370,000 to £356,000 in 2024, with the overall average selling price £319,000 compared to £324,000 in 2023.
“We have delivered a good performance during 2024 with full year UK completions towards the upper end of our guidance range, as previously indicated, and operating profit expected to be in line with our previous guidance,” Jennie Daly, chief executive, said.
“These results have been achieved while maintaining our high-quality build and customer service standards – with our customer service scores the highest they have ever been – testament to the hard work and commitment of our teams on the ground.”
Looking ahead, Taylor Wimpey said Labour’s planned changes to the planning system, unveiled in December, should prove a “positive step for the industry.”
However the group did forecast “increased build cost pressures,” partly as a result of the Autumn Budget tax changes and a changing economic backdrop.
“We remain confident in the attractive medium and long term fundamentals of the sector and are well placed to play our part in addressing the significant undersupply of UK housing,” it added.