Taylor Wimpey has announced it expects to complete fewer homes this year than previously anticipated, citing challenging market conditions and calling for government support to invigorate the property market. The housebuilder forecasts completions to be between 10,600 and 10,800 in 2026, excluding joint venture homes. This revised figure represents a decrease from its March projection of 10,600 to 11,000 new builds, which would have marked a 4% drop from 2025.
The company emphasized that without government assistance, the housebuilding industry faces limitations in its ability to construct new homes, potentially hindering UK economic growth. Taylor Wimpey is advocating for measures that would provide "demand support," encouraging more people to purchase and move homes. This call comes as Andy Burnham has ruled out any changes to stamp duty in the upcoming Autumn Budget.
"We continue to support the Government's housing ambition," Taylor Wimpey stated. "However, without targeted demand support and viability measures to unlock delivery, weaker demand, rising costs and limited affordable housing funding risks reducing sector output and UK economic growth."
In the first six months of 2026, Taylor Wimpey completed 4,986 homes, a decrease from 5,264 homes in the same period last year. Average selling prices are projected to increase by approximately 1% compared to 2026. Recent data from Nationwide Building Society indicates a modest 1.8% year-on-year increase in average house prices in July, reaching £277,542, though high mortgage rates and concerns about future tax increases are deterring potential buyers.
Taylor Wimpey's financial performance reflects the market downturn. The company's net cash reserves fell by 48% to £169 million in the half-year ending June 28, down from £327 million a year prior. Operating profit decreased by 19% to £130 million, while revenue saw a slight increase of 2% to £1.68 billion. The adjusted operating margin narrowed to 7.7% from 9.7%, attributed to weaker pricing, increased build costs, and reduced profitability.
Profit before tax for the period was £116.8 million, a significant improvement from a £92.1 million loss in the previous year, which included substantial charges for building safety provisions. The average selling price of Taylor Wimpey homes rose by 7% to £334,000. However, the company's total order book decreased to £1.93 billion, representing 6,882 homes, compared to £2.12 billion and 7,269 homes a year ago. The private sales rate in the four weeks leading up to July 26 eased to 0.55 homes per outlet per week from 0.59 a year earlier, with underlying selling prices approximately 2% below last year's levels.
Taylor Wimpey anticipates ending the year with approximately £250 million in net cash, after accounting for about £100 million in cladding-related payments. Jennie Daly, chief executive of Taylor Wimpey, commented on the focus on strategy and balance sheet management amid market uncertainty and stretched affordability. "We are managing the business tightly, controlling costs and building resilience for an improved housing market when it comes," Daly said.
The company expects market conditions to remain challenging for the rest of the year, with underlying pricing below prior year levels and full-year build cost inflation projected at 3% to 4%. Taylor Wimpey shares experienced a 4.48% decline on Friday morning, prompting the launch of a further £42 million share buyback program.