Taylor Wimpey: ‘The scene is set for recovery’

Housebuilder Taylor Wimpey has said government planning reforms are set to deliver a “step change” in the industry.

The company made the comments alongside its 2024 results.

Taylor built 10,593 homes in the year ended December 31, down slightly from 10,848 homes in 2023.

Revenue fell 3.2 per cent, to £3.4bn, while operating profit fell 11.5 per cent to £416.2m.

The company made a profit before tax of £320.3m, down 32.4 per cent year on year.

“2024 saw the return of some stability to the UK’s new homes market [but] the year was not without its challenges,” the company said.

Chief executive Jennie Daly said that the start of the spring selling season has been “robust”.

“Affordability – while remaining a challenge for many, especially first time buyers – is also moving in the right direction. As a result, our total order book is up on last year, putting us in a strong position to grow housing volumes this year.

“We expect to deliver full-year 2025 UK completions in the range of 10,400 to 10,800 – excluding joint ventures – and for group performance to be in line with market expectations”.

The average selling price on private completions was £356 000, down from £370,000 in 2023, and the overall average selling price was £319,000, down from £ 324,000 in 2023.

This compares to an average UK house price of £298,083.

‘No surprises’

“Taylor Wimpey’s results contained no surprises, and we expect to see profit growth in the year ahead,” RBC housing analyst Anthony Codling said.

Wimpey had previously said it remained on track to deliver UK volumes in line with guidance and that operating profit was consistent with current market expectations.

“The shares trade at a discount to book value and offer a yield of more than eight per cent.

“We appreciate that growth in 2025 is hamstrung by planning, but planning is changing for the better,  the scene is set for recovery, a recovery not yet priced into the shares in our view,” Codling said.

The company’s share price has fallen by nearly thirty per cent in the last six months and more than 43 per cent in the last five years.

Daly said Taylor Wimpey “welcomed the Government’s recent planning reforms, which are capable of delivering a real step change in planning outcomes.

“We look forward to seeing increased resources and a focus on the implementation phase to drive these outcomes and deliver much-needed new homes across the UK.”