The FTSE 100 builder said the start of the spring selling season has been ‘robust’, while affordability is ‘moving in the right direction’
Taylor Wimpey has reported “good levels” of demand for its houses in 2025, with the company optimistic that Labour’s planning reforms will facilitate more home approvals in the years ahead.
The FTSE 100 housebuilder described the onset of the spring selling season as “robust” and noted that housing affordability is “moving in the right direction”. Chief executive Jennie Daly commented on the changes to the approvals system, stating they “are capable of delivering a real step change in planning outcomes”.
“We look forward to seeing increased resources and a focus on the implementation phase… and deliver much-needed new homes across the UK.”
England’s planning system has often been criticised for its ease in rejecting building applications, contributing to the country’s severe housing shortage. Labour’s proposed reforms aim to increase approval targets for local councils and simplify construction on certain greenbelt areas. Sir Keir Starmer has voiced his ambition to dismantle the “challenge culture” surrounding infrastructure projects, including housing developments.
Despite the positive outlook, Taylor Wimpey acknowledged that house sales are still not at the peak seen in 2021. Following Liz Truss’s mini-budget in 2022, mortgage costs soared as interest rates increased, which impacted the industry significantly.
Taylor Wimpey anticipates selling up to 10,800 homes in 2025, a slight increase from just under 10,000 last year but still down from around 14,000 four years prior.
Meanwhile, the company also reported witnessing “modest” inflation in building costs, indicating a slight acceleration in the pace of price increases, which had slowed down last year following a period of rapid inflation previously. Housebuilders, including Taylor Wimpey, are among the numerous UK companies grappling with rising costs stemming from the October Budget, which includes increased employment taxes.
Despite this, the company highlighted a gradually improving landscape for house sales this year, as declining interest rates have contributed to lower mortgage costs for buyers in recent months. Taylor Wimpey noted that there is “good mortgage availability at competitive rates as lenders remain committed to the mortgage market”.
“As a result, the encouraging sales performance seen towards the end of 2024 has continued in the year to date.”
