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Home » Profits Halved At Taylor Wimpey As Completions Likely To Fall This Year

Profits Halved At Taylor Wimpey As Completions Likely To Fall This Year

Continued challenges in the housing market impacted top builder Taylor Wimpey last year as it saw operating profits plummet by nearly 50%.

The national developer delivered results which beat expectations and said that while macroeconomic conditions were still uncertain, it had seen early signs of an improved market. It completed 10,848 homes during the year, down from 14,154 in 2022, and now expects to finish between 9,500 to 10,000 properties in 2024.

Revenue fell 20.5% to £3.5bn as the net private sales rate for the year fell to 0.62 homes per site, per week, down from 0.68 last year. That came as the average selling price rose 3.5% to £324,000.

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In more recent trading, the year-to-date net private sales rate last week was 0.67 per site. It said overall customer interest and viewings were at good levels but that turning enquiries into reservations was continuing to take longer than pre-Q2, 2023. Bosses said completions were likely to be weighted towards the second half of the year.

Chief executive Jennie Daly said: “We delivered a good full year performance in line with expectations despite a challenging market, benefiting from our sharp operational focus, the quality of our homes and locations and a continued proactive sales effort. I would like to thank all our teams and supply chain partners for their ongoing hard work and commitment.

“It is still early in the year and the macroeconomic backdrop remains uncertain, however it is encouraging to see some signs of improvement in the market, with reduced mortgage rates positively impacting affordability and customer confidence.

“While the planning environment remains challenging, we have a high-quality, well-invested landbank and a strong financial position which underpins our ability to provide investors with a reliable income stream via our differentiated ordinary dividend policy. Looking ahead we are well-positioned in an attractive market, with significant underlying demand for our quality homes and are poised for growth from 2025, assuming supportive market conditions.”

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