Taylor Wimpey has warned that demand for new homes remains “muted” despite improving affordability, particularly among first-time buyers, echoing a cautious outlook from estate agents Foxtons and Savills. The housebuilder’s chief executive, Jennie Daly, said recent planning changes had generated “increased momentum in our recent planning permissions”, but added that subdued demand would constrain overall sector output.
Shares in Taylor Wimpey fell by 4.7% in early trading before closing about 1% down, while Foxtons dropped 6% over the day. Savills initially traded 1.6% lower before recovering to end nearly 9% higher. The company reported that completions rose by 6% to 11,229 in 2025, including 2,220 affordable homes, and the average selling price for a private home increased by 5.1% to £374,000.
Taylor Wimpey anticipates a lower operating profit margin of 11% for 2025, down from 12.2% in 2024, and expects an even lower margin in 2026, with a smaller order book at the start of the year. This follows a similarly cautious outlook from Persimmon, which reported stronger growth of 12% to 11,905 completions but said it was “not expecting any material improvement in market conditions this year”.
Foxtons reported a 2% drop in like-for-like revenues for property sales last year, blaming a slowdown leading up to the 26 November budget and broader economic uncertainty. Its total revenues rose by 5% to £172m, supported by lettings and acquisitions, but the company said its sales division began 2026 with a lower under-offer pipeline than the previous year.
Savills said market uncertainty would “remain elevated in 2026”, although strong pipelines and improving sentiment would support recovery. The company, now run by Simon Shaw, said the market recovery stalled in the middle of last year, while in mainland China the market declined by more than 20% for a third year, prompting further restructuring and a charge of up to £30m for 2025.
The Royal Institution of Chartered Surveyors’ monthly survey showed activity remained weak in December, but expectations for sales volumes and prices in 2026 rose. Daly said further progress was expected with the Planning and Infrastructure Act 2025, which should streamline decision-making and speed up planning consents, even as the government continues to struggle with its target to build 1.5m homes in England.
