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Housebuilder Taylor Wimpey has warned over rising costs coming through its supply chain as the conflict in the Middle East pushes energy prices higher.

Shares in the FTSE 250 firm slipped in early trading as a result, dropping to their lowest level for around 13 years.

It is the latest property firm to come under pressure from a combination of softer house prices, cautious buyers and increasing build costs.

Ahead of its annual general meeting on Tuesday, Taylor Wimpey told investors that build cost inflation is “now expected to be low to mid-single digit for 2026”, with cost pressure and surcharges “starting to come through from our supply chain”.

It has previously forecast build cost inflation in the low-single digits.

It came as the housebuilder reported a net private sales rate of 0.74 per outlet each week for the year to April 26, down from 0.77 a year earlier.

Meanwhile, Taylor Wimpey also recorded a total order book worth £2.23 billion, down from £2.33 billion year-on-year.

The group highlighted “resilient” customer interest but said it has also seen “some underlying price pressure”, with pricing across its order book down 1% year-on-year.

Last month, the firm said earnings were set to fall in 2026 in the face of the tough property market.

Jennie Daly, chief executive, said: “Sales in the year to date have been steady and our teams continue to work extremely hard to support customers through their homebuying journeys against ongoing affordability challenges and an increasingly uncertain macro backdrop.

“We are committed to delivering high-quality homes and driving our assets and continue to see good progress on planning and outlet openings whilst maintaining strict operational discipline.

“With highly experienced teams, a high-quality landbank and a healthy balance sheet, we remain focused on delivering growth over the medium term and value for all our stakeholders.”

Dan Coatsworth, head of markets at AJ Bell, said: “Taylor Wimpey’s update implies a small step back in terms of sales and pricing.

“It is watching inflation closely as there is a risk that materials to build a home become a lot pricier – which is not good news when Taylor Wimpey’s home selling prices are in retreat.

“It’s no wonder investors are displeased with the update as it suggests harder times ahead.”

Shares in Taylor Wimpey were 4.8% lower at 79.34p.