Taylor Wimpey has said that it expects its adjusted operating profit to be at the bottom end of its consensus range, following a subdued Autumn selling season.

The housebuilder said in its latest trading update that the housing market has remained challenging as increasing mortgage rates placing further pressure on affordability during this period.

The firm’s net private sales rate per outlet per week for the period from 29 June to 8 November was 0.6, with a cancellation rate of 17%.

Its order book dropped by 5.7% to 6,839 homes as of 8 November, while its value fell 6.2% to £1.98bn.

Taylor Wimpey said that pricing continues to reflect the subdued market conditions, with further marginal softening, and incentives remain elevated as previously communicated. It continues to expect build cost inflation between 3% and 4% for the full year.

The firm has welcomed the Government’s Your First Home scheme, and with its first-time proposition and a growing outlet base, it is well positioned to participate as the scheme develops.

Chief executive at Taylor Wimpey, Jennie Daly, stated: "The Autumn selling season has been more subdued, as higher mortgage rates and living costs continue to reduce customer affordability. We now expect 2026 UK completions excluding joint ventures to be around 10,500 homes and Group adjusted operating profit to be around the bottom end of the consensus range.

"We remain focused on supporting customers, operating efficiently, maintaining our strong balance sheet and progressing our strategy, and are on track to open more outlets this year, with progress reflecting our early proactive approach to planning."

In its outlook, Taylor Wimpey said it expects its adjusted operating profit to be at the bottom end of its £262m to £299m consensus range, while its UK completions are set to be around 10,500 homes, excluding joint ventures.

The firm added that it has also made good progress against its previously announced share buyback programme, and at close of business on 6 November, it had purchases 39 million shares, equating to £31.5m of the planned £41.9m programme.

The housebuilder plans to complete the scheme no later than 31 December.

Following the update, shares in Taylor Wimpey dropped by 4.4%.

Head of markets at Taylor Wimpey, Dan Coatsworth, said it’s a “bad time to be a housebuilder” in the current climate.

He concluded: "Taylor Wimpey is caught up in a perfect storm. That’s led to a warning that full-year operating profit will come in at the bottom end of the consensus forecast, causing the share price to pull back.

"The government’s Your First Home initiative doesn’t kick into gear until April, raising the risk that some people will delay property purchases in hope of participating in this scheme. That creates even more headwinds for the housebuilding sector. At least Taylor Wimpey is in a financially strong position to ride out the storm."

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