According to Taylor Wimpey, build cost inflation in its sector is now running at between zero and 1% on new tenders, having gradually come down throughout the second half of 2023.

The legacy of high inflation will continue to be felt for some months, however.

“We expect underlying build cost inflation of c.4% on H1 2024 completions as inflation contained in the opening work in progress balance is realised,” chief executive Jennie Daly said.

Taylor Wimpey’s total group completions (including joint ventures) in 2023 were 10,848 units (2022: 14,154), of which 10,438 were in the UK (2022: 13,773). UK average selling prices on private completions increased by 5.1% to £370k (2022: £352k).

When final results are published next month, group operating profit to be at the top end of the previous guidance range of £440m-£470m.

Jennie Daly said: “We are pleased to have delivered a full year performance in line with expectations and expect to report full year operating profit* at the top end of our guidance range. Despite the difficult market conditions throughout the year, we maintained a sharp operational focus and delivered a good performance.

“Looking ahead, it is encouraging to see a reduction in mortgage rates, however, in the short term the market remains uncertain and the planning backdrop extremely challenging.

“Taylor Wimpey is a strong and agile business underpinned by a robust balance sheet and an excellent, well-located landbank. These attributes enable us to manage the business in all market conditions, delivering quality homes to our customers and long term value to our stakeholders.”

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