By Laura McGuire
Housebuilder Taylor Wimpey has warned of further uncertainty in the UK housing market, but predicts profits to be at the top end of its previous guidance.
The FTSE 100 firm’s trading update mimicked that of its rival Persimmon, who on Tuesday warned of market trouble next year, while simultaneously raising the number of homes it plans to build.
Taylor Wimpey said it expects operating profit for this year to be at the top range of a previous guidance of between £440m to £470m.
The building firm pointed to a moderation in build cost inflation for its more hopeful outlook for the year ahead.
It also has plans to deliver between 10,000 to 10,500 new homes this year, due to a focus on “sharp cost discipline”.
As of 5 November 2023, the firm said its current total order book excluding joint ventures stood at .£1.9bn down from £2.6bn the prior year.
Jennie Daly, chief executive said: “Taylor Wimpey has delivered a resilient performance in what continues to be a challenging market backdrop, reporting a robust sales rate and strong financial position, and reiterating our full year 2023 UK volume guidance in the range of 10,000 to 10,500 homes.
“This performance is testament to the hard work of our experienced teams, who have continued to adapt and support customers through their buying journey while being focused on delivering efficiencies across the business.”
Oli Creasey, property equity analyst at Quilter Cheviot, said: “Taylor Wimpey released a Q3 trading statement this morning, which paints a picture of resilience in a challenging market.
“The company has reaffirmed guidance for full year volumes to be between 10,000-10,500 homes, but has been able to increase operating profit expectations, guiding analysts towards the top end of the previously announced range of £440-470m.”
