Taylor Wimpey has cut its housing targets and announced job cuts due to a weak property market. The company said on Wednesday that it expects to complete about 10,500 homes this year. This is down from its previous target of 10,600 to 11,000 homes. Rising mortgage rates and higher living costs have discouraged potential buyers, affecting the autumn selling season.
Key Details
The London-listed builder plans to make limited job cuts to improve efficiency. A spokesperson for Taylor Wimpey confirmed that these cuts will not affect on-site workers or apprentices. The job cuts will be nationwide, not limited to specific regions. The company is currently reviewing local team structures.
Taylor Wimpey reported a drop in net private sales per outlet, which fell to 0.60 from 0.63 a year ago. Cancellations remained steady at 17%. The Bank of England's recent interest rate hike from 3.75% to 4% has increased pressure on affordability, making the housing market more challenging. Chief Executive Jennie Daly noted that the autumn selling season has been weaker. She stated, "Higher mortgage rates and living costs continue to reduce customer affordability."
Background
The company also expects its operating profit to fall to the lower end of analyst expectations. These expectations range from £262 million to £299 million, down from £420.6 million reported in 2025. The builder is focusing on cost control and operational efficiency to address these challenges.
Related coverage: Rightmove Cuts Growth Outlook Amid Rising Mortgage Rates.
The slowdown in housing completions and rising costs could negatively affect the shares of Taylor Wimpey and other UK housebuilders. This is especially true as consumer demand remains low. Investors are likely to watch how mortgage rate changes impact the housing market.
Stay tuned for further updates on the housing market and any additional guidance from Taylor Wimpey about its performance in the coming months.
Based on reporting by: cityam.com, standard.co.uk