Home builder ‘pleased’ but still cautious

Taylor Wimpey said it expected profit to be at the top end of its previous guidance, but warned the mortgage market “remains uncertain”.

The housebuilder said it had completed 10,848 homes during 2023, a reduction of 3,306 compared with the year before.

It expected operating profit to be “at the top end” of the guidance previously issued of between £440 and £470 million. But shares had fallen by 0.7% by around midday.

“We are pleased to have delivered a fullyear performance in line with expectations and expect to report full-year operating profit at the top end of our guidance range,” chief executive Jennie Daly said.

“Despite the difficult market conditions throughout the year, we maintained a sharp operational focus and delivered a good performance.

“Looking ahead, it is encouraging to see a reduction in mortgage rates. However, in the short-term the market remains uncertain and the planning backdrop extremely challenging.”

Mortgage rates have soared over the last two years since the Bank of England started hiking its base rate from 0.1% in late 2021 to 5.25% now.

Taylor said it had entered the new year with a reduced order book, valued at less than £1.8 billion compared with more than £1.9bn a year earlier.

But it said customers had been showing interest in its homes since.

“Whilst too early in the year to gauge customer behaviour, we have seen good levels of inquiries so far this year and it is encouraging to see recent mortgage rate reductions which will improve affordability,” the company said.