British housebuilder Taylor Wimpey said today it would build fewer homes this year amid persistent weakness in the housing market, and also posted a 49% slump in annual profit, in line with market expectations.
The British housing market has seen signs of stability at the start of 2024 on easing mortgage rates after battling subdued demand for most of last year, but a delay in interest rate cut and incessant macroeconomic concerns have tempered hopes of a better-paced recovery.
"It is still early in the year and the macroeconomic backdrop remains uncertain, however, it is encouraging to see some signs of improvement in the market, with reduced mortgage rates positively impacting affordability and customer confidence," CEO Jennie Daly said in a statement.
The company, which also has a minor presence in Spain, said it expects to build in 2024 about 9,500-10,000 homes in Britain, including joint ventures, with the midpoint of the outlook range about 7% lower than 10,438 units constructed last year.
Taylor Wimpey said its sales rate, as of February 25, stood at 0.67 homes per outlet, compared with 0.62 units last year.
The FTSE 100-listed developer's operating profit for the year ended December 31 came in at £470.2m, almost in line with company-compiled average analysts' estimates of £469m.
