Taylor Wimpey LON:TW. will on Wednesday set out its medium-term ambitions to investors, pledging to deliver growth and higher returns as the UK housing market works through muted demand.
At a capital markets event for institutional shareholders and analysts, Jennie Daly, chief executive, and Chris Carney, finance director, will join senior executives to explain how Britain’s third-largest listed housebuilder plans to position itself for the next phase of the cycle.
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The company said it has reshaped its land position in anticipation of a more supportive planning environment, enabling expansion without the need for further large-scale land investment. It will target completions of 14,000 homes annually in the UK, excluding joint ventures, with a landbank of 4.5 to 5 years.
Taylor Wimpey setting ambitious targets
Taylor Wimpey also set a goal for group operating profit margins of 16 to 18 per cent and a return on net operating assets (RONOA) of more than 20 per cent.
Historically, the large listed builders (Barratt, Persimmon, Berkeley, Taylor Wimpey itself) have typically delivered RONOA in the mid-teens over a cycle, depending on market conditions. Achieving consistently above 20 per cent usually requires very strong volume delivery, margin discipline, and fast asset turn.
Current trading conditions are “muted” with flat pricing and modest sales rates. That makes hitting 20 per cent quickly less likely, since volumes are constrained and cancellation rates remain elevated. Taylor Wimpey is emphasising improved asset turn — shorter landbank, tighter working capital management — which could structurally lift RONOA. If they can grow completions to 14,000 without needing large new land spend, the maths works better.
Taylor Wimpey says growth will be driven by increasing the number of outlets, while reinvesting in smaller sites and “unlocking the value” of its existing landbank. Margins are expected to improve as newly purchased plots, bought under more favourable conditions, begin to feed through into the development pipeline.
The group stressed its focus on capital efficiency, pointing to changes in the National Planning Policy Framework that allow housebuilders to operate with shorter landbanks. Combined with improved work-in-progress management and higher volumes, this is expected to drive asset turnover and bolster returns.
Taylor Wimpey also reaffirmed its capital allocation policy, which prioritises balance sheet strength, investment in growth and consistent shareholder dividends.
Subdued market conditions
The update comes against a backdrop of subdued market conditions that began in the second quarter of the year. Despite this, the company reported a “robust” sales rate. In the nine weeks to 28 September, net private sales averaged 0.65 per outlet per week, down slightly from 0.70 a year earlier. Excluding bulk deals, the figure was 0.64, compared with 0.68 in 2024.
Pricing has held broadly steady, with a cancellation rate of 16 per cent, unchanged on the year. For 2025 to date, the sales rate stands at 0.74 per outlet per week, compared with 0.72 a year earlier, while cancellations edged up from 15 to 16 per cent.
As of 28 September, the order book stood at £2.1bn, covering 7,223 homes, down from £2.15bn and 7,709 units at the same point last year. Around 73 per cent of the order book was exchanged, in line with 2024 levels.
Delayed UK Budget weighs on customer confidence
Taylor Wimpey reiterated its full-year 2025 guidance of 10,400 to 10,800 UK completions, excluding joint ventures, and said it still expects group operating profit of about £424mn.
The company acknowledged that customer sentiment remains fragile, citing the delayed UK Budget as one factor weighing on near-term confidence. But it said it is fully sourced on land with planning consents for its 2026 completions, underlining its ability to sustain output.
Taylor Wimpey currently operates from 215 outlets, compared with 207 a year earlier, and expects to close 2025 with between 210 and 215 sites. It anticipates outlet numbers will rise year on year as it deploys capital from its existing land holdings.
The group pointed to the “pressing need” for new homes in the UK and reiterated its confidence in the medium-term potential of the business to deliver profitable growth and maximise shareholder returns.
