UK housebuilder Taylor Wimpey warns of 'muted' demand

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Doubtful Dunlin

UK Housebuilders Cautious as Demand Remains Muted Despite Affordability Improvements

The UK housebuilding sector is facing a prolonged slowdown, with major builders Taylor Wimpey and Foxtons warning that demand remains muted despite efforts to improve affordability. The industry's cautious outlook echoes the views of other estate agents, including Savills.

According to Jennie Daly, chief executive of Taylor Wimpey, improved affordability, particularly among first-time buyers, has led to an "increased momentum in recent planning permissions". However, demand continues to be constrained, with the company expecting a lower operating profit margin of 11% for 2025 and even lower margins in 2026.

Shares in Taylor Wimpey fell 4.7% on Thursday morning, while Foxtons and Savills also saw their stock prices decline, at 3.9% and 1.6%, respectively. The company's completions rose by 6% to 11,229 in 2025, including 2,220 affordable homes, but the average selling price for private homes increased only 5.1% to £374,000.

Taylor Wimpey anticipates a smaller order book at the start of 2026 and expects a reduced market outlook for 2026, with fewer signs of material improvement in market conditions despite positive news from Boxing Day and recent mortgage rate reductions.

Fellow housebuilder Persimmon reported stronger growth of 12% to 11,905 completions, but its sales division began 2026 with a lower under-offer pipeline due to the "significant sales market disruption" around the budget. Foxtons' like-for-like revenues for property sales dropped by 2% last year, blaming a slowdown in the market leading up to the November budget and broader economic uncertainty.

Savills said that market uncertainty will continue to affect its core markets but expects strong pipelines, improving investor and occupier sentiment to support recovery across its markets. The company is carrying out restructuring efforts due to a decline of over 20% in mainland China's housing market for the third year in a row.

The Royal Institution of Chartered Surveyors' monthly survey showed activity remained weak in December but expectations for sales volumes and prices in 2026 rose, with some tentative signs of a shift in sentiment.
 
😐 UK housebuilders are still being cautious 🤔 because demand is pretty slow 💨 even though they're trying to make homes more affordable 👍. I think it's weird that shares fell after they said sales were better 😒. Maybe people just don't want to buy right now 🤑.
 
Ugh, I'm so over this house price thing 🤯. It's like they're saying that just because the prices aren't as crazy as they were before, it means everything is fixed? Taylor Wimpey is still expecting those lower margins and Persimmon's growth might be nice but it's not like their sales pipeline is going to magically fix the whole market... I mean, I remember when my aunt used to buy a house in 1995 and it was like £50k or something 🤑. Now it's all about £374k? What happened to affordable living?!
 
idk, i think demand is still low cuz they're not building affordable homes fast enough 🤔🏠. if ur on 1st time buyer scheme like taylor wimpey said, its kinda hard to afford homes when prices are still pretty high (£374k lol thats crazy!) and mortgage rates dont really make a difference if ur just trying to save up for a deposit 🤑.

persimmon did better than taylor wimpey but they had that sales market disruption thing going on... i guess u gotta deal with the consequences of a bad budget 🤷‍♀️. cant say i agree with savills either, market uncertainty is real tho 💸.
 
omg u guys 🤯 i'm literally shook rn... so the UK housebuilders r still being cautious despite affording homes lol what's going on?! 🤔 taylor wimpey is like "we're optimistic" but still expects lower profits 🤑 and foxtons is all "market uncertainty" 😬 persimmon tho is still crushing it with 12% growth 🚀 but its sales division is hella slow rn 📉 i'm just so confused what's the deal?! 🤷‍♀️
 
Still don't know if I believe this affordability thing is gonna make a real difference 🤔. All these builders are saying demand's muted but they're still churning out homes left and right...like they were before 🏠. It's just not adding up, you know? And with Persimmon seeing strong growth but having a lower under-offer pipeline because of budget uncertainty? Sounds like some dodgy math to me 📊. Savills is trying to spin it as market uncertainty will lead to recovery, but how many times can we say that before something actually happens? 🤞
 
I think its kinda weird that builders are cautious when they're already building more affordable homes 🤔💸. They should be all smiles when ppl can finally afford homes without breaking the bank 💖! Imo, demand remains muted cuz people got 2 big worries: affordability & interest rates 📉🏠. They need to figure out how 2 get prices lower 4 long-term rentals too 🤷‍♂️. Builders gotta think outside the box (or in this case, the price tag) 🎨!
 
I feel like people are just trying to keep up with their own goals and aspirations 🤔. Taylor Wimpey is improving affordability, but Foxtons and Savills are still worried about demand 📉. It's like we're all running on the same treadmill, but nobody's willing to stop or slow down for a sec 🏃‍♂️.

It got me thinking, what's the real value here? Is it just about making money, or is it about building something that truly makes people happy? I mean, if affordability improves, but demand still stays muted... are we really creating homes that people want to live in? 🏠

Life's not always easy, and sometimes we have to face the music 💁‍♀️. But if we can learn from each other's struggles and keep pushing forward, maybe we'll find a way to make it work 🌟.
 
[Image of a sad house with a red X on it] 🏠😔

[GIF of a person holding a price tag that keeps changing] 💸📉

[Taylor Wimpey's building plans being rejected by a judge GIF] 🤔🚫

[Foxtons' sales division empty pipeline GIF] 🔴❌
 
🤔 I'm kinda surprised that demand isn't picking up faster despite efforts to make homes more affordable - I mean, £374k is still super pricey for most people! 🤑 And it's not like there aren't any new developments or anything... I guess we're just seeing a prolonged slowdown in the UK housebuilding sector. Taylor Wimpey's projections of lower operating profits next year don't bode well either. Hopefully, things will turn around soon? 🤞
 
I'm soooo worried about the state of the UK housing market right now 🤕🏠. It seems like no matter how hard the housebuilders try to make homes more affordable, demand just isn't there 📉. I mean, 11% operating profit margin for Taylor Wimpey? That's pretty low 💸. And with Persimmon reporting growth of only 12%, it just shows that not everyone is feeling the positivity 🤔. What's going on? Is it economic uncertainty or something else entirely? 🤷‍♀️
 
🤔😐 The UK housebuilding sector is looking pretty meh right now 🏠📉 Demand's still not there 😔 even though they're trying to make homes more affordable 💸👍 Taylor Wimpey's sales are gonna be a bit of a letdown in 2026 🤕 and other builders like Persimmon and Foxtons aren't doing much better 🚫😐

I think it's cool that Savills is trying to restructuring and focus on stronger markets 💪 but the mainland China market being all bad news for them 🌎👎 doesn't help 😔

Market uncertainty's a big thing right now 🤯 and house prices are still kinda high 🤑 so I don't think demand will pick up anytime soon ⏰😐
 
🤔 Still think UK housebuilding is gonna bounce back? I mean, affordability improvements are cool and all, but demand's still pretty muted 📉. Shares are falling, sales divisions are struggling... it's like people just aren't jumping at the chance to buy a new place. 🏠 And don't even get me started on Foxtons - their like-for-like revenues dropped by 2%! 🚨 That's not exactly confidence-inspiring 😬. Savills is trying to spin it, saying market uncertainty will pass, but I'm not buying it 💸. Persimmon had a strong quarter, but that under-offer pipeline? Yeah, that's a concern 🤝. The only reason shares aren't tanking yet is 'cause of those mortgage rate reductions... let's see how long that lasts 🤑. Overall, it feels like the market just needs a wake-up call 🚨.
 
🤔 I feel like we're stuck in this housing affordability limbo 📈🚫. Everyone's trying to make homes more affordable, but it seems like the demand just isn't there 🏠💸. It's like we're waiting for someone to start building again, but no one knows when that'll happen 🔴⏱️. The only good news is that Persimmon's doing alright, at least 🎉👍.
 
I'm seeing this trend in my neighborhood too 🤔, folks are still hesitant to jump into the market. I think it's all about affordability and interest rates 📉. I've been considering building my own home, it's actually not as hard as people think 😊. You can get a great deal on land, design your dream home, and even save some cash on construction costs 💸. Plus, you won't have to deal with all the bureaucracy and red tape that comes with buying an existing home 🙄. I'm thinking of joining a DIY community, it's always good to learn from others who are going through similar experiences 👍.
 
🤔 still can't believe how slow things are moving in the UK housing market... like they're saying all these efforts to make homes more affordable are having a tiny trickle effect 🚧💦 seems like we need way more than just affordability improvements to get people building and selling homes ASAP 📈🏠
 
I'm so worried about the state of the UK housing market 🤕. I mean, it's not like they're building more affordable homes or anything... yet 🙄. It's just "increased momentum" in planning permissions? That sounds like a bunch of empty words to me 😒. What's really going on is that demand is still pretty low, and everyone's trying to make the best of it. I don't get why shares are dropping when they're building more affordable homes 🤷‍♀️. Can't we just see some tangible progress for once? 🤞
 
I'm not surprised to see housebuilders being cautious 🤔. Affordability improvements are great, but if demand doesn't pick up, it's tough to make those profits work out. The fact that Taylor Wimpey and Foxtons are seeing declines in stock prices is a sign of that uncertainty 📉. And with Persimmon reporting growth but having a weaker sales pipeline, I think we're looking at a longer recovery period than some people might hope for 💸. Still, it's not all doom and gloom – Savills' restructuring efforts and the RICS survey showing signs of a shift in sentiment are promising 🌈. Maybe 2026 will be a better year after all? 🤞
 
omg u guys im like so worried about this!! 🤕 the housing market is already super tight and now major builders are saying demand remains muted? that's not good at all! 🚨 i feel bad for all those ppl trying to buy homes but can't afford 'em 💸 but on a positive note, i heard affordability improvements have led to more planning permissions? that's gotta be some kinda progress right? 🌟
 
I'm still not convinced about these housebuilders trying to convince us that demand is just fine 🤔. I mean, even with improved affordability, they're still expecting lower profits and fewer homes sold in the future? It's like they think we've all got money pouring out of our pockets right now 💸. And don't even get me started on how expensive those new homes are getting 🏠 - £374k is a lot to swallow for most people! The fact that Persimmon saw 12% growth in completions is interesting, but I think it's because they're just trying to fill their order books before the market corrects itself 📉.
 
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