British Housuilder Taylor Wimpey reported a drop in sales in the key period of autumn, with no certainty in the run-up of potential buyers buying buyers.
The Company, the latest homebuilding business to report soft sales growth, reported that its weekly average fell to 11.63 from 0.71 in the same period last year.
“Market conditions will remain challenging, impacted by uncertainty ahead of the UK’s upcoming budget and continued benefit pressures,” said Jennie Daly, Chief Executive.
“The government’s housing ambitions, and the significant economic and social benefits of increased housing supply can only be locked in by effective demand, particularly for the ability of first-time buyers.”
The Company’s order book is also up, at 7,253 homes on 9 November compared to 7,771 at the same point last year, with a value of £2.1bn. However, it is said that for the year to date, the sales are less than in 2024, an average rate per site of 0.72 compared to 0.73.
In August, it was reported that Treasury officials were considering a new tax on the sale of houses worth more than £500,000, although it is not yet clear whether the Chancellor, Rachel Reeves, will choose to implement it.
The country reported a slow growth in house prices last month, with analysts suggesting that buyers are “sitting on the tracks that could lead to new taxes.
However, last week Halifax reported a different picture, suggesting that UK House prices in October rose from a September in September despite the uncertainty in September.
Taylor Wimpey also said that while it expected price appreciation to remain “broadly flat”, construction costs were expected to continue to rise at a low percentage point.
Anthony Codling, a capital markets analyst at RBC, said the softening of the market had “all but canceled the autumn sales of the summer”.
“It is clear that the UK housing market has softened in the second half as budget uncertainty has increased since the summer,” he said.
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“Home prices will remain stable, but costs continue to rise, creating margin headwinds, and the ramp to revise the Budget.
Despite the softened market, Taylor Wimpey said it expects this rate completion and operating profit to be in line with previous guidance.
“We delivered a live performanient thanks to the hard work of our teams on the ground,” said Daly. “Looking ahead, the fundamentals of the UK market in the UK are very important. As a recent investment information and the development of shareholders will return in the medium term.”