Autumn Budget uncertainty weighing on consumer confidence, Taylor Wimpey says

Taylor Wimpey has reported a dip in sales activity over recent months as it flagged the upcoming autumn Budget as adding to concerns weighing on homebuyer confidence.

The Buckinghamshire-based housebuilder nonetheless said it was ready to lean into the “pressing need” for new homes in the UK.

It reported a net private sales rate of 0.65 per outlet per week in the nine weeks to September 28 – an indicator of the average number of homes sold at each of its development sites.

This was lower than the 0.7 rate recorded over the same period last year.

At the end of the period, its total order book value was £2.12 billion – down slightly from £2.15 billion last year.

Taylor Wimpey told investors it was on track to meet its target of completing the sale of between 10,400 and 10,800 homes over 2025, and generating a operating profit of about £424 million.

However, the company said it was “mindful of the various issues impacting customer sentiment and propensity to buy homes, including the impact of the delayed UK Budget on short term customer confidence”.

Rachel Reeves will set out her annual Budget statement on November 26.

Pressure on the Chancellor to raise money to balance the books has led to speculation that she could raise taxes, such as through changes to inheritance tax and capital gains tax rules.

Reports have also said that she may consider an overhaul of property tax, or a move to impose national insurance on landlords’ rental income.

Uncertainty over the changes could be prompting potential home buyers to delay their purchases in the short term, some estate agents have suggested.

It follows new figures from Nationwide Building Society on Wednesday showing the average UK house price increased by 0.5% in September, compared with the previous month, following a 0.1% monthly fall in August.

Nationwide said it shows that underlying conditions for potential home buyers were positive despite uncertainties about the economy, and that housing market activity was likely to gradually strengthen.

Taylor Wimpey said it remains “confident in the underlying fundamentals of the UK housing market, with its pressing need for new homes”, as well as its ability to improve its own profits.