Taylor Wimpey sees sales and pricing slip as it warns of impact of cost pressures from war in Iran
Taylor Wimpey has become the latest housebuilder to warn it is facing cost pressures amid higher energy prices sparked by the war across the Middle East. The FTSE 250 firm said build cost inflation was now forecast to be in the 'low to mid' single digits this year, driven by higher energy costs and supply chain surcharges.It came after the housebuilder said sales and pricing had slipped in the year to 26 April. Its net private sales rate came in at 0.74 per week, slightly down on the 0.77 reported in the previous year, with a total order book value of £2.2billion, reflecting 7,689 homes. It marks a fall from a book value of £2.3billion and 8,153 homes a year ago. Taylor Wimpey said it had experienced 'some underlying pricing pressure,' with overall pricing in the order book around one per cent lower year-on-year. The steepest decline in prices emerged in the south of England, where affordability remains a major stumbling block for many would-be buyers.It said it was managing its exposure and phasing out of its London apartment schemes. Shares in Taylor Wimpey fell 4 per cent on Tuesday. Pressure: Taylor Wimpey has warned it faces 'cost pressure' amid higher energy pricesJennie Daly, Taylor Wimpey's chief executive, said: 'Sales in the year to date have been steady and our teams continue to work extremely hard to support customers through their homebuying journeys against ongoing affordability challenges and an increasingly uncertain macro backdrop.'Land investment has been more selective, with approximately 1,000 plots approved so far this year compared with 1,700 last year. Its landbank stood at around 76,000 plots as at the end of March 2026, compared to 78,000 a year ago. Meanwhile, it has a pipeline of 133,000 potential plots, 3,000 lower than in 2025. Looking ahead, the group said it would continue to focus on controlling costs, managing land spend and supporting customers, while relying on its landbank and balance sheet to deliver 'growth and strong shareholder returns over the medium term'. As previously announced, the group intends to pay a 2025 final ordinary dividend of 2.95p per share to investors on 15 May 2026. Dan Coatsworth, head of markets at AJ Bell said: 'Taylor Wimpey’s update implies a small step back in terms of sales and pricing. It is watching inflation closely as there is a risk that materials to build a home become a lot pricier – which is not good news when Taylor Wimpey’s home selling prices are in retreat. It’s no wonder investors are displeased with the update as it suggests harder times ahead.'Last week, Crest Nicholson slashed its outlook for sales and profits, warning over the impact of the Iran war on costs and buyer confidence.The slowdown in the housing market is also starting to be felt across the supply chain, with lower demand for building materials. Travis Perkins today said revenue dipped 1.7 per cent in the three months to 31 March as construction activity remains 'subdued'. 'There’s not a lot that Travis Perkins can do apart from keep a keen eye on costs and find more efficient ways to run its business so not a penny is wasted,' said Coatsworth. It was a brighter picture for kitchen supplier Howden Joinery, which saw sales rise 3.7 per cent in the 16 weeks to 18 April. DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Taylor Wimpey sees sales and pricing slip as it warns of impact of cost pressures from war in Iran
