Published by Global Banking & Finance Review®
Posted on January 16, 2025
2 min readLast updated: January 27, 2026
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Taylor Wimpey warns of build cost pressures amid UK housing market challenges, with affordability and economic concerns impacting the sector.
(Reuters) -Taylor Wimpey said on Thursday it was well placed to build more homes in 2025 than last year, but flagged increased build cost pressure at a time the British housing sector navigates affordability and broader economic concerns.
Shares in the FTSE 100 UK homebuilder were down 2.3% to 111.85 pence in early trade.
British homebuilders, which grappled with lacklustre demand in 2024, now face potential pressure from slower-than-expected reduction in interest rate cuts.
Although tax hikes, rising labour costs, fears of reduced government spending and recent volatility in bond markets have soured the economic outlook, the surprise drop in UK December inflation has soothed some nerves.
"Market conditions are uncertain, and we continue to monitor the impact of mortgage costs on affordability," CEO Jennie Daly said in a statement.
The company said that while price negotiations for 2025 are ongoing, it expects increased build-cost pressure as suppliers assess the impact of the UK budget, including increased labour costs kicking in from April.
Analysts at BOFA Global Research said in a note that Taylor Wimpey's quality land bank and healthy balance sheet will benefit the group when market demand returns.
The High Wycombe, UK-based company said its year-end order book excluding joint ventures stood at about 2 billion pounds, up from 1.77 billion a year earlier.
Excluding joint ventures, Taylor Wimpey built 9,972 homes in Britain in 2024, down about 4%, and reiterated that it expected its annual operating profit to be in line with the market view.
Earlier in the week, Taylor Wimpey's FTSE 100 peer Persimmon forecast its 2024 earnings at around the upper end of market view, buoyed by improved sales and pricing strength, while midcap builder Vistry cautioned about an uncertain housing market outlook.
(Reporting by Aby Jose Koilparambil in Bengaluru; editing by Subhranshu Sahu and Jason Neely)
The article discusses Taylor Wimpey's warning about increased build cost pressures amid challenges in the UK housing market.
The market faces affordability issues, slower interest rate cuts, and economic concerns like tax hikes and labor costs.
Taylor Wimpey is well placed to build more homes in 2025 despite current cost pressures.
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