Taylor Wimpey cuts housing targets in ‘subdued’ market

Taylor Wimpey has cut its housing target and expects operating profit to be near the bottom of analysts’ forecast range, citing weaker demand in a subdued property market. The update highlights pressure on UK housebuilders as higher mortgage rates and living costs make homes less affordable, while rising building costs add to the strain.

The company now expects to build 10,500 homes this year, below its earlier target of 10,600 to 11,000, and forecasts operating profit within a consensus range of £262m to £299m, towards the lower end. Its shares fell 4.5 per cent to 78p; its net private sales rate was 0.69 for the year to date, compared with 0.72 last year, and dropped to 0.60 after June. Taylor Wimpey welcomed Labour’s First Home programme, due to begin in April, though the article notes concerns about its £650,000 cap for inner London and the possibility that buyers may delay purchases.