Profits have dropped at the housebuilding firm, falling by 22.6% to £182.3million over the first half up to the end of June, while both sales and home completions declined by 7% and 7.7% respectively, falling to 4,728 homes completed
Property giant Taylor Wimpey is gearing up to construct as many as 10,000 homes this year, hitting the upper reaches of earlier predictions.
The company revealed plans on Wednesday for an expected surge in activity during the latter half of 2024, despite enduring a slower start to the year. Profits have dropped at the housebuilding firm, falling by 22.6% to £182.3million over the first half up to the end of June, while both sales and home completions declined by 7% and 7.7% respectively, falling to 4,728 homes completed.
Taylor Wimpey attributed this subdued period to mortgage costs staying high because of high interest rates. However, with anticipated interest rate reductions in the coming months, Taylor Wimpey is confident of hitting the “upper end” of its projected completion range of 9,500 to 10,000 homes, a slight dip from the 10,400 homes completed last year, but a strong indication of recovery amid a tough spell for housebuilders.
Market watchers are looking to see if the Bank of England will cut interest rates this Thursday, after maintaining a base rate of 5.25% since last August in the battle against inflation. Labour’s proposed planning policiy changes also spell good news, according to Taylor Wimpey, and could mean a windfall for the construction industry.
Earlier in July, Chancellor Rachel Reeves announced plans to reform the national planning policy framework. This includes reinstating mandatory housebuilding targets for local authorities as part of an ambitious goal to construct 1.5 million homes over a five-year period.
In a statement, the company expressed that planning reform will be “key to unlocking future years land supply”. They also added that Labour’s proposals could have a “create a positive future impact on the sector”.
Taylor Wimpey’s Chief Executive, Jennie Daly, said: “Though it is early days for the new Government, we welcome their recognition that planning is a major barrier to economic growth, of which housebuilding is a significant component, and we look forward to working constructively with them to deliver much-needed new homes across the UK.”
