Taylor Wimpey on track to hit completions goal amid ‘market stability’

Taylor Wimpey has said it still expects to complete between 9,500 and 10,000 homes this year as sales were as expected in the first four months of the new year.

The housebuilding giant, in a trading update today, said it has made a “good start” to 2024.

Its net private sales for the year to 21 April were 0.73 per outlet per week, slightly down on 0.75 for the same period last year. However, excluding bulk sales, sales per outlet per week rose from 0.66 to 0.69.

Taylor Wimpey says it expects to meet its previous completion forecast with more than half of the expected completions (55%) in the second half of the 2024 calendar year.

Jennie Daly, chief executive of the £3.5bn-turnover business, said: “We have made a good start to 2024 with the Spring selling season progressing as expected.

“While we are mindful of ongoing market uncertainty and affordability challenges, it is pleasing to see continued market stability supported by good mortgage availability and sustained customer confidence.”

>>See also: ‘We’re victims of short-term policy-making’: Interview with Taylor Wimpey boss Jennie Daly

>>See also: Housebuilders could be fined a combined £2.5bn if found guilty of anti-competitive behaviour

Taylor Wimpey re-iterated that its build cost inflation on current projects is around 4%, which, along with slightly lower pricing, will affect its operating profit margin this year.

The expected 2024 figure of between 9,500 and 10,000 completions would be lower than the 10,848 posted in 2023 and the 14,154 homes it built in 2022. The firm had previously said the “weaker economic backdrop” had hit its output.

Taylor Wimpey is one of eight housebuilders being investigated by watchdog the Competition and Markets Authority (CMA) over alleged anti-competitive behaviour. If found guilty of wrongdoing it could face a fine of up to £420m. The business welcomed the CMA’s report on the housebuilding market, published in February, and said it would “cooperate fully” with the newly-opened investigation.