The British housebuilder Taylor Wimpey has reported a drop in sales in the key autumn period, blaming uncertainty in the run-up to this month’s budget for potential buyers holding back purchases.
The company, the latest home construction business to report softer sales growth, reported that its weekly average for the number of private sales per site fell 11% to 0.63 between 30 June and 9 November compared with 0.71 in the same period last year.
“Market conditions remain challenging, impacted by uncertainty ahead of the upcoming UK budget and continued affordability pressures,” said Jennie Daly, its chief executive.
“The government’s housing ambitions, and the significant economic and social benefits of increased housing supply can only be unlocked by effective demand, particularly for affordability constrained first-time buyers.”
The company’s order book is also down, at 7,253 homes as of 9 November compared with 7,771 at the same point last year, with a value of £2.1bn. However, it said that for the year to date, sales are only slightly down on 2024, an average rate per site of 0.72 compared with 0.73.
In August it was reported that Treasury officials had been considering a new tax on the sale of homes worth more than £500,000, although it is not yet clear whether the chancellor, Rachel Reeves, will choose to implement it.
Nationwide reported a slowing in house price growth last month, with analysts suggesting that buyers were “sitting on the sidelines” before a budget that may bring new property taxes.
However, last week Halifax reported a different picture, suggesting that UK house prices in October had risen at their fastest pace since January, with demand bouncing back from a September trough despite the budget uncertainty.
Taylor Wimpey also said that while it expected underlying pricing to remain “broadly flat”, building costs were expected to continue to rise at a low single-digit percentage rate.
Anthony Codling, an analyst at RBC Capital Markets, said that the softening in the market had “all but cancelled the autumn selling season”.
“It is clear that the UK housing market has softened in the second half as budget uncertainty has been growing since the summer,” he said.
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“House prices remain firm, but build costs continue to rise, creating margin headwinds, and the order book is down 7% by volume. The catalyst for change is the budget on 26 November rather than today’s trading update, and on budget day the shares could go either way.”
Despite the softening market, Taylor Wimpey said it expected its completion rate and operating profit to be in line with previous guidance.
“We have delivered a resilient performance thanks to the hard work of our teams on the ground,” Daly said. “Looking ahead, UK housing market fundamentals are highly compelling. As set out at our recent investor and analyst event, we remain confident in our ability to deliver profitable growth and maximise shareholder returns over the medium term.”
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