The housebuilder completed the sale of 9,972 homes in the UK over 2024, lower than the 10,356 completed in 2023 but at the upper end of its previous guidance range.

This means its full-year operating profit is expected to meet a previous forecast of £416 million.

The average selling price of a home, sold privately in the UK, was £356,000 last year, lower than the £370,000 average price in 2023, it revealed.

Taylor Wimpey said house prices were weaker in the south of England where “affordability has been most stretched”, compared to the north where there had been some price growth.

Looking ahead, the FTSE 100-listed company said it was starting 2025 with a bigger order book than last year and an encouraging level of enquiries, but that it was too early to gauge customer behaviour.

Its performance will depend on the movement of mortgage rates and their impact on people’s ability to afford a home – with further interest rate cuts expected this year.

It also said it was anticipating increased pressure on construction costs due to the changing economic landscape, and as suppliers work to mitigate the impact of the government’s autumn Budget.

It follows a string of businesses and retailers warning that they may have to raise prices to help absorb the cost of higher taxes this year.

Jennie Daly, CEO, said: “We have delivered a good performance during 2024 with full year UK completions towards the upper end of our guidance range, as previously indicated, and operating profit expected to be in line with our previous guidance1. These results have been achieved while maintaining our high-quality build and customer service standards – with our customer service scores the highest they have ever been – testament to the hard work and commitment of our teams on the ground.

“Taylor Wimpey is a strong and agile business with a clear strategy focused on operational excellence. While market conditions are uncertain, and we continue to monitor the impact of mortgage costs on affordability, we enter 2025 with a strong order book and land position, underpinned by a robust balance sheet and highly experienced teams, which positions us well to deliver volume growth in 2025.

“We remain confident in the attractive medium and long term fundamentals of the sector and are well placed to play our part in addressing the significant undersupply of UK housing.”

In a trading statement for the year ended 31 December 2024, the firm added: “We begin the year with an increased order book compared to the start of 2024, thanks to stronger sales in the latter half of last year. We have seen an encouraging level of enquiries at the start of the year, however it is too early to gauge customer behaviour for 2025. Given our order book and current land position, we remain well placed to grow volumes in 2025, dependent on the evolution of mortgage rates and their impact on affordability.

“Whilst price negotiations for 2025 are ongoing, we anticipate increased build cost pressure as a result of the changed economic backdrop, including as suppliers seek to factor in the impacts of the recent UK Budget.

“Looking forward, we maintain a strong balance sheet, have highly experienced teams and are well positioned to optimise our strong landbank and strategic pipeline for growth. We remain confident in the attractive medium and long term fundamentals of the sector and are well placed to play our part in addressing the significant undersupply of UK housing.”