𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Housebuilder Taylor Wimpey has revealed annual profits more than halved, and warned earnings will fall again in 2026 amid tougher property market conditions.

The group said pre-tax profits tumbled 54% to £146.5 million in 2025 as it blamed uncertainty ahead of last November’s autumn budget for a slowdown in buyer demand at the end of the year, which has impacted orders going into 2026.

On an underlying basis, pre-tax profits fell 5.8% to £394.2 million and operating profits edged 1.1% higher to £420.6 million.

Taylor, which had warned over 2025 profits in January, alerted that it expects underlying earnings to fall this year, to around £400 million.

The group said: “2025 was another challenging year for the sector.

“The first quarter of the year was strong reflecting interest rate reductions and wage growth.

“However, uncertainty ahead of the late autumn budget impacted sales through the second half of 2025 and our order book coming into 2026.

“While overall affordability is slowly improving, demand continues to be muted, particularly in the South and among the important first-time buyer category, which is constraining overall sector output.”

It said the spring selling season had “started well, with encouraging levels of customer interest”, though its order book has fallen to £2.18 billion as at March 1, down from £2.28 billion a year earlier.

Chief executive Jennie Daly said the results come “against a backdrop of continuing market uncertainty and more recent geopolitical events”.

Despite cutting the dividend by 20%, the group appeased investors with news of a £52 million share buyback by the end of June.

Shares lifted 3%.

The figures showed it completed 10,614 UK homes last year, up from 9,972 in 2024 and in line with its forecasts.

Average selling prices on private homes rose to £374,000 from £356,000 the previous year, helping revenues rise to around £3.8 billion, from £3.4 billion in 2024.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Despite the recent momentum, the outlook for the whole of 2026 is where Taylor Wimpey left investors wanting more.

“Progress is expected to slow this year due to a downward trend in selling prices on the order book and continued low single-digit cost inflation.

“That means margins are now expected to narrow, and as a result, underlying operating profits are expected to fall.”