Taylor Wimpey (TW) Trading Update summary

Market conditions and trading performance

• Market conditions are steady and stable, with improved sales rates in H2 2024 at 0.7 per outlet per week, up from 0.51 in 2023, and normalized cancellation rates at 17%, down from 21% in 2023.

• Consumer confidence is generally good, though some caution was observed ahead of the recent budget and potential interest rate changes.

• Outlets averaged 209 in H2, expected to end the year just over 200, with strong visibility on sites to deliver 2025 growth assuming a supportive market.

• Order book as of 4 November 2024 stands at approximately £2.2 billion, representing 7,716 homes, with private units up year-on-year and affordable units slightly lower.

• Full-year 2024 UK volumes expected at the upper end of 9,500–10,000 homes guidance, with operating profit in line with market expectations.

Land, planning, and investment

• Year-to-date land approvals are around 11,000+, up from 3,000 in 2023, with activity boosted by vendors acting ahead of budget changes and strategic land conversions.

• Short-term landbank remains stable at approximately 79,000 plots; strategic pipeline at 136,000 potential plots.

• Converted about 4,000 plots from the strategic pipeline year-to-date.

• Net cash expected to be around £500 million at year-end, subject to land purchase timing.

• All land for 2025 completions is owned or controlled, with most having detailed planning consent.

Cost management and outlook

• 88% of 2024 completions are already exchanged or completed (17% exchanged, 71% completed).

• National Insurance increase expected to impact overheads by £3.5–4 million (April–December 2025), annualized at £5–6 million.

• Build cost inflation on new tenders is flat or slightly deflationary due to self-help and cost management measures.

• Ongoing engagement with supply chain to manage cost pressures, with national agreements in place and active resistance to supplier price increases.