Taylor Wimpey saw annual profit and revenue fall but is seeing a “robust” start to the year as demand picks up on the back of lower borrowing costs.

The housebuilder said it built 10,593 homes in 2024, down on the previous year’s 10,848, while the average selling price fell to £356,000 from £370,000.

This dragged operating profits down by 11.5% to £416.2m and pre-tax profits were down 32.4% at £320.3m. Revenue was 3.2% lower at £3.4 billion.

However, optimism has risen as interest rates fall and the Labour government is committed to planning reform and more housebuilding.

Taylor Wimpey said the start of the spring selling season had been “robust”, with good levels of demand.

In the year to the week ending 23 February, the net private sales rate was 0.75 per outlet per week, up 12% year-on-year, while pricing was flat.

Jennie Daly, chief executive, said: “Affordability, while remaining a challenge for many, especially first-time buyers, is moving in the right direction.

“As a result, our total order book is up on last year, putting us in a strong position to grow housing volumes this year. We expect to deliver full-year 2025 UK completions in the range of 10,400 to 10,800 (excluding joint ventures) and for group performance to be in line with market expectations.

“We welcome the government’s recent planning reforms, which are capable of delivering a real step change in planning outcomes.”

Shares closed 2.65p lower at 111.95p.

Market reaction

Russ Mould, investment director at AJ Bell, said: “While its 2024 results followed the sector trend of being relatively weak, the housebuilder struck a positive tone, seeing robust sales in the spring selling season so far.

“The concern for investors will be that the looming increase in stamp duty thresholds, which has helped drive demand will dampen it once the deadline has passed.”