TW in line with expectations but warns of cost pressures

Taylor Wimpey is set to achieve its expected operating profit for its full year but anticipates build cost pressures this year, driven by October’s Budget.

Giving a trading update ahead of its 2024 results, scheduled to be announced on February 27, the volume housebuilder said that as previously indicated, operating profit for the year was anticipated to be in line with previous guidance, at around £416 million.

Total UK completions - excluding joint ventures - for the year ending December 31 2024 were at 9,972 against 2023’s 10,356. This was at the upper end of the guidance range of 9,500 to 10,000 homes given in November.

Its UK net private reservation rate for 2024 was 0.75 homes per outlet per week against 2023’s 0.62. Excluding bulk deals, this was 0.67 (2023: 0.54).

At the same time, the housebuilder said it expected increases in build costs in 2025 thanks to an altered economic backdrop, “including as suppliers seek to factor in the impacts of the recent UK Budget”.

It noted a stronger order book compared to the start of 2024, driven by improved sales in the year’s latter half. As of the end of its financial year, …