Housebuilder Taylor Wimpey suffered a dent in revenue and profit in a set of half year results in which it hailed the new government’s “recognition” of planning laws as being a “major barrier” to housebuilding.
The interim numbers, which come just a day after Angela Rayner laid out a radical set of reforms to increase the number of new homes being built in the UK, revealed a hefty dent to operating profit at the firm, falling 22.6 per cent from £235.6m to £182.3m.
Revenue also fell substantially, dropping 7.3 per from £1.63bn to £1.52bn, as the higher interest rate and mortgage rate environment continued to weigh on the FTSE 100 housebuilder.
All of which meant adjusted earnings per share dropped by nearly a quarter from 5 per cent to 3.8 per cent.
The numbers, which Taylor Wimpey had laid the ground for in previous announcements, did force the firm to change its guidance for full year results in six months’ time. And it expects UK completions to come in at the upper end of its previous guidance.
Jennie Daly, Taylor Wimpey’s chief executive, said: “We have delivered a good financial and operational performance in the first half, against a relatively stable market backdrop, reporting a good sales rate while continuing to protect value.
“While interest rates and mortgage rates remain high, our teams continue to work extremely hard on the ground to support our customers through the homebuying process, and I would like to thank them for their ongoing commitment.”
The firm also looked ahead to the impact that the new Labour administration will have on the sector, after its large majority ensured it should be able to carry out its plans to build 1.5m homes over the course of the parliament without any political barriers within Westminster.
Many of the large UK housebuilders’ stock prices have rallied in recent months, as shareholders and investors anticipate a boom in housing supply, which the likes of Taylor Wimpey, Barratt and Persimmon will be responsible for delivering.
Speaking of the new government, Daly said: “Though it is early days for the new government, we welcome their recognition that planning is a major barrier to economic growth, of which housebuilding is a significant component, and we look forward to working constructively with them to deliver much needed new homes across the UK.”