Taylor Wimpey issued a trading update on Tuesday detailing a deterioration in selling prices in southern England alongside an upward revision to build cost inflation, even as management maintained its adjusted EBIT guidance of £400 million for fiscal 2026.
Pricing and order book
The homebuilder said the order book now reflects a 1% reduction in prices, up from an earlier reported 0.5% decline. The company characterized more recent sales as being down by about 1.5% compared with prior expectations. In aggregate, the order book fell in value by 4.5% and in volume by 5.7%, according to the update.
Build cost inflation
Taylor Wimpey raised its guidance for build cost inflation. At the start of the year management had expected low single-digit inflation of 2-3%, but now anticipates mid-single-digit inflation of roughly 4%.
Sales activity and cancellations
Year-to-date (YTD) sales per site per week were reported at 0.74, or 0.72 when excluding bulk sales. That compares with 0.77 for the same period last year and is unchanged from the 0.74 reported in the firm’s previous update through week 19. The company reported that sales remained steady through the period covered by the update, and that cancellation rates have held at 14%.
Outlets, land approvals and buyback progress
The average outlet count for Taylor Wimpey reached 219, up from 208 a year earlier, with current outlets at 218. The company reiterated it is on track to increase the average outlet count for fiscal 2026. On land activity, the group has taken a more cautious stance on approvals: 1,000 approvals year to date versus 1,700 in the prior-year period. On shareholder returns, Taylor Wimpey has completed £34.9 million of a planned £52 million share buyback programme.
Context and implications
The update presents a mixed picture: management has absorbed weaker pricing and rising construction inflation into its operating outlook while keeping its adjusted EBIT target unchanged. The figures show modest softness in sales momentum versus last year, a tightened approach to land approvals, and ongoing share buybacks at a reduced scale of completion relative to the full programme.
All figures and statements above are those provided by the company in its trading update.