Taylor Wimpey reported a dip in sales in subdued market conditions in the second quarter of the year, but remains on track to deliver completions in line with its expectations.
The housebuilder said that it had seen a “robust” sales rate despite the challenging market during the period from 28 July to date, which stood at 0.65 per outlet per week, down slightly from 0.70 year-on-year. Excluding bulk sales, the figure stood at 0.64 (0.68 in 2024).
For the year to date, Taylor Wimpey’s sales rate was 0.74 per outlet per week, and 0.69 excluding bulk deals. The housebuilder recorded 0.74 and 0.68 excluding bulk sales during the same period the previous year.
As of 28 September, the developer’s total order book value stood at £2,123million, a slight decrease on the £2,153million the previous year. The figure excludes joint ventures and represents 7,223 homes, down from 7,709 year-on-year.
Despite the dip in figures, Taylor Wimpey’s trading update said that it still expects to achieve between 10,400 and 10,800 completions for the full year, in line with its previous guidance, as well as delivering a full-year group operating profit in the region of £424million.
The update also said that the housebuilder was mindful of the various issues impacting consumer sentiment and propensity to buy homes, and noted the impact of the delayed Budget on short-term customer confidence.
The trading update came as Taylor Wimpey hosted an event for institutional investors and analysts, which outlined the company’s plans for growth and how it will unlock value and maximise returns.
During the event, Taylor Wimpey outlined plans to increase its UK completions to 14,000 in the medium-term, while also boosting the group’s operating profit margin to 16-18%.
