Taylor Wimpey has reduced its forecast for home completions this year due to ongoing difficulties in the UK housing market.
The housebuilder reported completions, including joint ventures, dropped to 4,986 in the first half of 2026, down from 5,264 in the same period last year. The decline followed a slower sales rate since January.
For the full year, the company now expects to deliver between 10,600 and 10,800 completions in the UK, excluding joint ventures. This range falls within the lower half of the guidance issued in March.
Market conditions are expected to stay difficult through the rest of the year. Weaker pricing and a 3% to 4% rise in build costs were identified as key pressures.
In a statement, the company said: “We continue to support the Government’s housing ambition. However, without targeted demand support and viability measures to unlock delivery, weaker demand, rising costs and limited affordable housing funding risks reducing sector output and UK economic growth.”
Despite fewer completions, Taylor Wimpey reported a 1.7% increase in total revenues to £1.68 billion for the first half. The gain came from a 6.7% rise in the average selling price of completed homes.
It also returned to a pre-tax profit of £116.8 million, reversing a loss from the same period last year.
The situation reflects wider trends in the sector. Rightmove, the online property portal, described growth in the new homes market as “subdued,” with a 6% drop in new build developments compared to a year ago. Its revenues still rose 7% to £225.8 million, while operating profits climbed 2%.
Johan Svanstrom, Rightmove’s chief executive, said the platform’s performance gave him confidence for the rest of 2026, despite volume challenges.
For housebuilders, the current environment involves more than just demand issues. Planning delays, labor shortages, and material costs have squeezed margins in ways that weren’t as noticeable during the post-pandemic boom.
The last time the sector faced similar constraints—after the 2008 financial crisis—recovery took years. This time, pressure comes from both sides: buyers are cautious, and builders face higher costs to complete homes.
The profit rebound shows pricing power still exists in some areas, but the reduced volume forecasts indicate a careful strategy. The warning about government housing targets isn’t new, though it holds more significance now that the figures are declining.
Another major retailer recently made a similar strategic shift. Sainsbury’s sold Argos for £120 million, refocusing on core operations amid market pressures.