Leading UK housebuilder Taylor Wimpey has been forced to trim its annual earnings outlook after political uncertainty in the run-up to last November's budget triggered a significant slowdown in sales.
Revised Forecast and Market Reaction
The FTSE 250 firm now anticipates its operating profit for the full year 2025 will be approximately £420 million. This represents a reduction from the £424 million it guided investors towards in November. While the new figure is still higher than the £416.2 million earned in 2024, the downward revision spooked the market. Shares in the group fell by as much as 6% in Thursday morning trading on 15 January 2026 following the announcement.
The company pointed directly to hesitation in the housing market caused by the impending autumn budget statement. This uncertainty not only dampened sales in the final six months of 2025 but also negatively impacted forward orders for the new year.
Order Book Dip and Future Profitability
This knock-on effect is clearly visible in the company's year-end order book, which was valued at £1.86 billion. This marks a decline from the £2 billion recorded at the close of 2024. Taylor Wimpey warned that this weaker starting position will inevitably affect its profitability throughout 2026, with performance expected to be more heavily weighted towards the second half of the year.
The challenges are not unique to Taylor Wimpey. Rival housebuilder Vistry also reported on Wednesday that house sales dropped in 2025, blaming a "more subdued market" stemming from the same budget uncertainty.
Operational Performance and Executive Commentary
Despite the headwinds, the group's full-year operational update contained some positive figures. It completed 10,614 UK homes in 2025, an increase from 9,972 in 2024 and in line with its targets. A rise in the average selling price for private homes to £374,000 from £356,000 helped push group revenues to around £3.8 billion, up from £3.4 billion the previous year.
Chief Executive Jennie Daly stated: "We delivered a robust performance during 2025 in the context of challenging market conditions." She welcomed recent government planning reforms but highlighted ongoing demand issues. "However, while affordability is slowly improving, demand continues to be muted – particularly among the important first-time buyer category – which will constrain overall sector output."
Looking ahead, the company noted it is too early to predict the crucial spring selling season but is currently experiencing a good level of inquiries consistent with the previous year.
