Annual Report and Accounts 2024
Fit for the
future
Contents
Strategic report
1-101
1
Fit for the future
6
Business overview
10
Investment case
11
Chair’s statement
13
Chief Executive’s statement
18
Adding value
20
Our business model
30
Our market environment
37
Market trends, opportunities and risks
39
Performance against our
strategic cornerstones
50
Operational review
52
Building for our customers
55
Building for our people
58
ESG assurance
59
Materiality assessment
60
Our commitment to the environment
63
Task Force on Climate-related
Financial Disclosures
80
Non-financial and sustainability
information statement
82
Risk management
85
Principal Risks and uncertainties
91
Group financial review
95
Viability statement
97
Stakeholder engagement and
Section 172 (1) statement
Directors’ report
102-166
103
Governance at a glance
104
Board of Directors
107
Group Management Team
108
Chair’s introduction to the Directors’ report
109
The Board’s year
112
Understanding shareholder views
113
Engaging with our employees
115
Monitoring our culture
116
Our governance structure
119
Nomination and Governance
Committee report
125
Diversity
126
Audit Committee report
136
Remuneration Committee report
160
UK Corporate Governance Code
compliance statement
163
Statutory, regulatory and
other information
Financial statements
167-237
168
Independent auditors’ report
178
Consolidated income statement
179
Consolidated statement of
comprehensive income
180
Consolidated balance sheet
181
Consolidated statement of
changes in equity
182
Consolidated cash flow statement
183
Notes to the consolidated
financial statements
221
Company balance sheet
222
Company statement of
changes in equity
223
Notes to the Company
financial statements
229
Particulars of subsidiaries,
associates and joint ventures
237
Five year review
Shareholder information
238-251
238
Notice of Annual
General Meeting
250
Shareholder facilities
Our reporting suite
Annual Report
Our 2024 Annual Report is an integrated
report which includes key sustainability
and financial disclosures.
Scan for the full
Sustainability
Summary 2024
Sustainability Summary
More information on our materiality process,
sustainability activities and policies can be
found in our 2024 Sustainability Summary.
Scan to view our
online Annual
Report 2024
Fit for the
Our strategic cornerstones of land, operational excellence,
sustainability and capital allocation
remain consistent and have
enabled us to adapt quickly to optimise changing market conditions.
Our focus has been ensuring we are
fit for the future
and well
positioned
to drive sustained growth and returns for all
stakeholders,
with:
A quality landbank ready to deliver
Read more on
page 2
A business focused on operational excellence to drive value
Read more on
page 4
An agile strategy to manage the housing cycle
Read more on
page 5
The capacity built for sustained growth
Read more on
page 3
future
1
Strategic report
Directors’ report
Financial statements
Shareholder information
We have the land we need to grow
We have an excellent short term landbank and
mature strategic pipeline
which gives us a competitive
advantage and will enable us to deliver more homes
in the improving planning environment
A quality landbank
ready to deliver
Fit for the future continued
Taken a proactive
approach to upcoming
planning changes
c.26.5k
plots for first principle planning
determination in the planning system
(2023: c.30.2k)
Short term
landbank of
c.79k
plots across quality locations
(2023: c.80k) with 56% converted from
the strategic pipeline (2023: 54%)
Mature strategic
pipeline of
c.136k
potential plots
(2023: c.142k)
Increased opportunistic
landbuying in 2024
c.12k
plots approved
(2023: c.3k)
Land
Read more on
pages 39 to 41
Taylor Wimpey plc
Annual Report and Accounts 2024
2
The capacity built for
sustained growth
We have invested in the capacity to scale the business
, including opening
a timber frame plant and developing a compelling employee value proposition to
ensure we recruit and retain the best people in a skills constrained industry
Fit for the future continued
30%
timber frame target
(of completions) by 2030,
using our own facility,
in combination with
our existing suppliers
93%
employee engagement score
(2023: 93%)
1,624
A
homes built using timber frame
(2023: 1,661)
The best home
for the best people
Operational excellence
Sustainability
Read more on
pages 42 to 47
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
3
Strategic report
Directors’ report
Financial statements
Shareholder information
With an efficient standard house type range, consistent processes
and the ability to leverage the only logistics business in the sector,
we are driving efficiency and reducing costs
A business focused on operational excellence to
drive value
98%
of materials received
on time in full to site from
Taylor Wimpey Logistics
(2023: 99%)
94%
completions from standard
house type range,
excluding apartments
(2023: 90%)
98%
of employees believe we take
health and safety seriously
(2023: 98%)
Operational excellence
Read more on
pages 42 to 44
Fit for the future continued
Taylor Wimpey plc
Annual Report and Accounts 2024
4
An agile strategy to manage the
housing cycle
With proven strategic cornerstones
providing flexibility
to perform in all market conditions and a differentiated
Ordinary Dividend Policy providing reliable returns
Land
Operational excellence
Sustainability
Capital allocation
Read more on
pages 39 to 49
Total dividend
for 2024
£335m
(2023: £339m)
Differentiated Ordinary
Dividend Policy based on
7.5%
of net assets, or at least
£250m annually, providing
reliable returns through the cycle
Strong
balance sheet
£565m
net cash*
(2023: £678m)
Resilient
sales rate
0.75
net private sales rate
per outlet per week
(2023: 0.62)
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 94 for definitions.
Fit for the future continued
5
Strategic report
Directors’ report
Financial statements
Shareholder information
Map key
Head office
Regional offices
Scotland, North East and
North Yorkshire
1
regional
business
Spain
4
regional
businesses
5
regional
businesses
3
regional
businesses
North West and Yorkshire
Midlands and Wales
5
regional
businesses
Central and South West
5
regional
businesses
London and South East
Spain
10,000 homes in
2024
, making us one
of the UK’s leading
Where we operate
a local level from 22 regional businesses
Business overview
Taylor Wimpey plc
Annual Report and Accounts 2024
6
Net zero by 2045
We achieved certification to the Carbon Trust’s Route to
Net Zero Standard, Advancing level in 2024 and were
the only housebuilder to hold this standard in the year.
Read more on
page 61
More information about our approach to, and
performance on, sustainability and ESG topics
can be found throughout this report:
Environmental, social and
governance (ESG) ratings
and accreditations
Read more about our strategic cornerstones on
pages 39 to 49
Our purpose
We are defined by our clear purpose
to build great homes and
create thriving communities.
We seek to deliver superior returns for shareholders
through our high-quality landbank and enhance
value through sharper operational focus.
Land
Operational
excellence
Sustainability
Capital allocation
Implemented through
our strategic cornerstones
Business overview continued
Environment
60
Our commitment to
the environment
63
Task Force on Climate-related
Financial Disclosures
Social
52
Building for our customers
55
Building for our people
97
Stakeholder engagement and
Section 172 (1) statement
Governance
113
Engaging with our employees
115
Monitoring our culture
116
Our governance structure
117
Board leadership
Built on a strong culture
of doing the right thing
Our values
Take
responsibility
Be
proud
Better
tomorrow
Respectful
and fair
ESG assurance
For a number of years we have received
limited assurance over our carbon and
energy data; this year we have gone
further, selecting four additional ESG
metrics that have been subjected
to independent limited assurance
procedures, demonstrating our
commitment to ESG.
Read more on
page 58
7
Strategic report
Directors’ report
Financial statements
Shareholder information
* Alternative Performance Measures
The Group uses Alternative Performance Measures (APMs), such as those indicated above with
a footnote symbol, as important financial performance indicators to assess underlying performance
of the Group. The Group's two main financial targets are operating profit margin and return on
net operating assets. Definitions and reconciliations of our APMs to the equivalent statutory
measures are included in Note 32 of the financial statements. Please see page 94 for definitions.
Group financial highlights
Delivering
a good set
of results
Business overview continued
2022
2023
2024
10,593
10,848
14,154
Group completions including joint ventures
10,593
2022
2023
2024
£320.3m
£473.8m
£827.9m
Profit before tax
£320.3m
2022
2023
2024
123.8p
127.1p
126.5p
Tangible net assets per share*
123.8p
2022
2023
2024
12.2%
13.4%
20.9%
Operating profit margin*
12.2%
2022
2023
2024
10.9%
12.6%
26.1%
Return on net operating assets*
10.9%
2022
2023
2024
9.59p
9.57p
9.06p
Total dividend per share paid in the year
9.59p
2022
2023
2024
£564.8m
£677.9m
£863.8m
Year end net cash*
£564.8m
2022
2023
2024
£3,401.2m
£3,514.5m
£4,419.9m
Revenue
£3,401.2m
2022
2023
2024
£416.2m
£470.2m
£923.4m
Operating profit*
£416.2m
Taylor Wimpey plc
Annual Report and Accounts 2024
8
UK highlights
New outlets opened
in the year
55
(2023: 47)
Construction Quality Review
average score (out of 6)
4.93
(2023: 4.89)
Employee engagement
score
93%
(2023: 93%)
Contributions to local communities,
via planning obligations
£345m
(2023: £405m)
Average selling price
on private completions
£356k
(2023: £370k)
Plots in short
term landbank
c.79k
(2023: c.80k)
Customer satisfaction
8-week score
96%
(2023: 92%)
Annual Injury Incidence
Rate (per 100,000 employees
and contractors)
212
A
(2023: 151)
Reduction in operational CO
2
emissions (absolute) since 2019
47%
(2023: 35%)
Business overview continued
A
This metric was subject to external independent limited assurance by
PricewaterhouseCoopers LLP (‘PwC’). For further information please see page 58.
9
Strategic report
Directors’ report
Financial statements
Shareholder information
Taylor Wimpey is well positioned
with a trusted brand and
a national presence. The UK
housing market offers an
attractive opportunity. There is
a significant undersupply of
homes underpinning long
term growth potential.
10.6k
total homes completed
(2023: 10.8k)
Strong and resilient
business well-positioned
for all market conditions
Operational excellence to optimise
margin and drive attractive
long term returns.
• Business set up to manage through
the cycle to optimise performance
in different trading conditions
• Preparing all areas of the business
for the next phase of the market,
with volume growth in 2025
and beyond
£3.4bn
of land on the balance sheet
(2023: £3.3bn)
A high-quality landbank
that differentiates us
High-quality landbank and excellent
strategic pipeline provide optionality
throughout the cycle.
• High-quality landbank to deliver
future volumes
• Strong track record of strategic
land conversion benefiting margin
and visibility of supply
• Aligned to benefit from planning
reform with high-quality applications
in the planning system
93%
employee engagement score in 2024
(2023: 93%)
Sustainable and responsible
business built for the long term
ESG embedded throughout the
organisation for the benefit of all
our stakeholders.
• Health and safety is our number
one priority
• Continuing to invest in long term
sustainability with investment in
customer service and employees
• Target to achieve net zero by 2045,
five years ahead of regulation
£339m
dividends paid to shareholders in 2024
(2023: £338m)
Reliable returns providing
visibility to our shareholders
Committed to paying an annual ordinary
dividend through the cycle and returning
surplus capital at the appropriate time.
• Differentiated Ordinary Dividend
Policy to pay out 7.5% of net assets
or at least £250 million annually
throughout the cycle
We have a
compelling investment
proposition
to optimise
shareholder returns
Investment case
Taylor Wimpey plc
Annual Report and Accounts 2024
10
Performance in line with
expectations and positioned
for sustained growth
Dear shareholder,
2024 saw the return of some stability to the
UK’s new homes market. However, the year was
not without its challenges. At the start of 2024,
an improved interest rate outlook meant lower
mortgage rates for our customers with
affordability improving. The summer brought
positive changes to the planning system from
the new Government, aimed at getting Britain
building, but some caution on UK finances ahead
of the Autumn Budget. After the Budget,
forecasts for future inflation rose slightly and
mortgage rates began to rise, albeit modestly.
Against that backdrop, our teams continued to
work hard for our stakeholders, and I am pleased
that we delivered a good financial performance
with revenue of £3.4 billion (2023: £3.5 billion)
and operating profit* of £416.2 million
(2023: £470.2 million), which was in line
with expectations.
We also delivered a good performance in our
ESG (environmental, social and governance)
metrics, including our highest ever customer
service and build quality scores. On behalf
of the Board, I congratulate our colleagues
on these achievements.
We continue to support the UK’s transition to net
zero, by building low carbon homes and through
delivery of our Net Zero Transition Plan. As we
move forward, we are ensuring that commitment
to the UK’s biodiversity and nature is still
prioritised as changes to the planning system
are rolled out.
In 2024, we increased the number of ESG
metrics that were subject to independent limited
assurance procedures, further demonstrating our
commitment to ESG. This focus is important to
our stakeholders and key to Taylor Wimpey’s
continued success over the long term, which is
why sustainability will remain a key cornerstone
of our strategy.
You can read more about how our 2024 financial
performance was achieved, together with our
performance in relation to ESG, in Chief Executive
Jennie Daly’s statement, in Group Finance
Director Chris Carney’s review and throughout
this report.
Dividend
We are pleased to have provided a reliable return
to our shareholders through changing markets.
Recognising that housebuilding is a cyclical
industry, our Ordinary Dividend Policy to return
7.5% of net assets per year provides increased
visibility to our shareholders. At our full year
results in February 2025, we announced the
2024 final ordinary dividend payment of
4.66 pence per share, subject to shareholder
approval at the Annual General Meeting (AGM).
Together with the 2024 interim dividend payment
of 4.80 pence per share, the total ordinary
dividend for the year is 9.46 pence per share
or approximately £335 million.
Managing through the cycle
Your Board manages the business for the cycle,
meaning that while short term performance
is important, strategic decisions also protect
the longer term interests of the Group and
its stakeholders.
In 2024, this meant preparing our teams for the
next phase in the cycle. ‘Fit for the future’ is the
theme of this report and making sure we are
equipped to meet new opportunities and
challenges has been our focus, as Jennie
outlines in her statement on page 16.
We must optimise
short term performance
but continue to invest in
areas that matter for the
future sustainability of
the business.”
Robert Noel
Chair
Chair’s statement
11
Strategic report
Directors’ report
Financial statements
Shareholder information
Health and safety remains our number one
priority in all markets. This is the first topic
covered in every Board and local regional
management team meeting across the country.
The safety of our customers is of paramount
importance and we remain focused on the
remediation of legacy buildings to bring them into
compliance with revised fire safety standards.
We will continue our focus on health, safety and
environmental compliance across the business,
with additional emphasis on employee and
subcontractor wellbeing.
Last year, I wrote to you about our strong Group
culture of ‘doing the right thing’. I am pleased
that the 2024 employee survey showed this to
be a continued strength, with an even higher
response rate to the survey of 73% (2023: 69%)
and a consistently high engagement score of
93% (2023: 93%).
This year, Board members have visited a number
of regional businesses and sites, and each Board
member continues to be impressed with the skill
and commitment of our employees. We continue
to promote the employee voice through our local
and national employee forums and through
Mark Castle in his role as Employee Champion.
During the year, the Executives and I actively
engaged with institutional shareholders, including
the executive management’s trip to see our North
American investors, the first for several years.
We look forward to meeting shareholders at the
AGM which will again take place at the Crowne
Plaza Hotel, Gerrards Cross on Wednesday
30 April 2025. Shareholders will again be able
to submit their vote in advance by proxy and
email questions in advance of the meeting.
Board changes
After just over nine years, Humphrey Singer
stepped down from the Board on 31 December
2024. Scilla Grimble, independent Non Executive
Director, succeeded Humphrey as Chair of the
Audit Committee with effect from 1 September
2024 and Lord Jitesh Gadhia, independent
Non Executive Director, succeeded Humphrey
as the Senior Independent Director from
1 December 2024.
On behalf of the Board, I would like to express
our sincere thanks to Humphrey for his wise
counsel, stewardship and commitment both
during his long service as Chair of the Audit
Committee and more recently as the Board’s
Senior Independent Director.
I would also like to welcome Martyn Coffey
who joined the Board as an independent Non
Executive Director on 1 December 2024 and
became a member of the Audit and Nomination
and Governance Committees. Having previously
served as CEO of Marshalls Plc for over 10 years
and as a Non Executive Director of Eurocell plc
for eight years, Martyn brings a wealth
of experience and deep knowledge of
manufacturing for the building industry
and of supply chains.
Fit for the future
The future is exciting for Taylor Wimpey, and
we are determined to play our part in providing
much needed quality homes for our customers.
The UK has a significant housing shortage,
estimated at over four million, meaning there
will be major opportunities for Taylor Wimpey to
grow as affordability improves and consumer
demand returns to stronger levels.
In addition, changes in the planning system
should help unlock the land needed to support
home building in the coming years. With a clear
strategy in place, a strong balance sheet,
excellent landbank and experienced and
engaged teams, we are well positioned to
benefit and are fit for the future.
Robert Noel
Chair
Chair’s statement continued
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial
statements. Please see page 94 for definitions.
Taylor Wimpey plc
Annual Report and Accounts 2024
12
Our continued focus on
operational discipline
and driving value
in 2024
has enabled us to navigate
another year of changing
market conditions for
our customers.”
Jennie Daly
Chief Executive
Dear shareholder,
2024 has been another year of market change,
but also one of opportunity in which we have
been able to further build on our successes,
secure a competitive advantage and ensure
we are well positioned for the future.
2024 backdrop
While 2024 brought more market stability than
2023, the delay in interest rate cuts and high
mortgage rates continued to impact affordability
and therefore customers’ ability to transact in 2024,
resulting in lower completion levels compared with
previous years. Affordability remained challenging
for many potential customers, particularly first time
buyers as well as some of our customers in the
South of England. Incentives remained an important
element in driving customer commitment
throughout 2024 and overall pricing in the year end
order book was marginally lower than the prior year.
We continued to optimise the balance between
pricing and volume with a focus both on margin and
return on capital. However, as stated, 2024 margin
continued to be impacted by build cost and pricing
dynamics as well as the impact of overhead costs
being recovered across fewer completions.
Through 2024 we have continued to identify and
pull all the levers we have available to us to drive
performance, from our continued focus on cost
management and value improvement, through
to a fully refreshed marketing campaign.
Our regional businesses continue to work hard to
embed the efficiency savings we have made over
the past few years. We had relatively flat build costs
on new tenders in 2024 and modest overall inflation
for the year’s completions. We expect the 2025
cost environment to return to a more normal profile
of low single digit increases, given the extended
period without price increases for our suppliers and
well-known inflationary pressures for businesses as
a result of the Autumn Budget changes to National
Insurance and Minimum Wage.
The planning environment remained difficult in the
year, albeit we have been very pleased with the
Government’s pace of implementation on the
National Planning Policy Framework (NPPF)
which will in time lead to increased land supply
and more certainty in planning outcomes. During
2024 we opened 55 new outlets (2023: 47).
Our strong balance sheet and excellent landbank
enabled us to navigate these challenges effectively.
Against this backdrop, I am pleased to report we
delivered a good set of financial results, in line with
guidance, achieving a Group operating profit* of
£416.2 million and Group completions (including
joint ventures) of 10,593 (2023: £470.2 million and
10,848). The reduction in operating profit for the
year reflects the challenging trading backdrop.
Our short term landbank of c.79k plots (2023:
c.80k), a c.4k increase in the owned land to
c.66k, and strategic pipeline of c.136k potential
plots (2023: c.142k) is sector leading and is key
to our future success. Our land investment is
strategically targeted to quality locations with
strong demographics. This is demonstrated
by the resilience in our net private sales rate
of 0.75 per outlet per week (2023: 0.62).
Our results are made possible by our disciplined
approach and the hard work of our teams across
the business and I want to take a moment to
thank all of our employees and our partners
and suppliers for their support.
Fire safety
The safety of our customers is of paramount
importance, and we have always been guided
by this principle. It is our long held view that
leaseholders should not have to pay for the
cost of fire safety remediation and our priority
has always been to ensure that customers in
Taylor Wimpey buildings have a solution to
cladding remediation.
We took early and proactive action, committing
significant funding and resources to address
fire safety and cladding issues on all affected
Taylor Wimpey apartment buildings built
since 1992.
In 2022, we signed up to the Government’s
Building Safety Pledge for Developers and the
Welsh Government Building Safety Developer
Remediation Pact which reaffirmed our
commitment that leaseholders should not have
to pay for fire safety remediation. In the first half of
2023 we also signed the Scottish Safer Buildings
Accord. Prior to signing these, we had already
begun working on affected Taylor Wimpey
buildings. By the end of 2022 we had recorded
a total provision for cladding fire safety
remediation works of £245.0 million.
Chief Executive’s statement
13
Strategic report
Directors’ report
Financial statements
Shareholder information
A strong
business
set
up for growth
2024 was about preparing
and setting up the business
for growth to ensure we are
fit for the future.
We have come into 2025 with a strong
order book and excellent landbank.
We have the sites open, the plots in the
planning system for future years and an
engaged and experienced workforce
ready to deliver sustained growth.
Chief Executive’s statement continued
In the first half of 2024 we reassessed the
remediation costs based on tenders received
and based on this updated information and
enhanced cost appraisal, the expected fire safety
remediation cost was increased by £88.0 million.
The increase was due to increased costs based
on recent tenders, including project delivery
administration costs and funding of the Building
Safety Fund pre-tender costs and a small number
of new buildings being added. In the second
half of 2024 one of the Group’s joint ventures
recognised a provision for remediation works on
the buildings it built and as a result £19.1 million
has been released from the provision held by
the Group in relation to those buildings. This
results in a net charge for the year of £68.9
million, recognised in operating expenses as
an exceptional item.
During the year we spent £28.5 million on
remediation works and continued to progress
work with building owners, management
companies and leaseholders and we remain
committed to resolving these issues as soon
as practicable for our leaseholders. We have
203 buildings within the scope of our provision,
all of which have been assessed by our specialist
team. We signed the Ministry of Housing,
Communities and Local Government (MHCLG’s)
Joint Plan in 2024 and are working to meet the
targets it sets out.
More information on the Building Safety Levy
and our approach to mitigating and managing
risk can be found on page 36, alongside an
update on the Future Homes Standard.
Winstanley and York Road
joint venture
In December 2024, we disposed of our interest in
the Winstanley and York Road Regeneration LLP
joint venture (JV) – this was a mutual agreement
with Wandsworth Council enabling the Council to
take a new approach to prioritise the delivery of
affordable housing provision. The JV was formed
in 2017 to deliver a 12-to-15-year estate
regeneration scheme including a mixed-use
development of up to 2,550 homes, improved
community facilities and a new park. Under the
JV, 139 homes, a new school, church, multi-use
games area and play area have been successfully
delivered. The net impact was a £13.6 million
loss, recognised as an exceptional cost in 2024.
Competition and Markets
Authority (CMA)
Taylor Wimpey welcomed the CMA’s final report,
published on 26 February 2024, from its
housebuilding market study with its focus on
improving the planning system, adoption of
amenities and outcomes for house buyers.
At that time of publication, the CMA commenced
an investigation into a number of housebuilders,
including Taylor Wimpey, relating to concerns that
they may have exchanged competitively sensitive
information. On 10 January 2025, the CMA
updated its timetable stating that further
investigation, including additional evidence
gathering and CMA analysis and review,
would continue until May 2025.
We will continue to cooperate fully with the
CMA in relation to its investigation as we have
done throughout the process to date.
Delivering in the right way
for all stakeholders
It matters to us how we achieve our results.
I am particularly pleased to have achieved these
good results while also increasing our 8-week
customer service score to 96% (2023: 92%)
and our 9-month customer service score to 80%
(2023: 77%) as measured by the Home Builders
Federation (HBF) customer satisfaction survey.
This is our highest ever performance and
we remain a five-star housebuilder. We are
a leader in build quality in the volume industry
and have again improved our CQR score to
4.93 (2023: 4.89). This reflects our commitment
to delivering high-quality homes and excellent
customer service.
We are in a great place,
with a strong balance sheet
and order book, and an
excellent landbank.
In 2025 we want to embrace
the opportunity for growth and
further drive performance.”
Jennie Daly
Chief Executive
Taylor Wimpey plc
Annual Report and Accounts 2024
14
Our strategic cornerstones
We remain focused on our proven strategic cornerstones
An agile approach to optimising value
• Focused on progressing land through the
planning system to open quality outlets
• Strong landbank and excellent strategic
pipeline enabling us to deliver more homes
in the improving planning environment
and positioning us for sustained growth
Driving efficiency and execution
• Continued focus on driving performance
• Investing in the long term success
and sustainability of the business
• Advanced preparation for
changing regulations
• Optimising value across all areas
of the business
Investing to protect
long-term value for stakeholders
• Continue to advance
Environment Strategy
• Embed net zero plan in the business
• Creating thriving communities
through placemaking
• Prioritise value
A clear and disciplined approach
• Maintain a strong balance sheet
• Funding business needs including land
investment and work in progress (WIP)
• Clear and sustainable Ordinary Dividend
Policy to provide visibility to shareholders
Land
Sustainability
Capital
allocation
Operational
excellence
Chief Executive’s statement continued
Read more on
pages 39 to 41
Read more on
pages 42 to 44
Read more on
pages 45 to 47
Read more on
pages 48 to 49
2025 priorities
There are aspects that we consider as
fundamental to Taylor Wimpey and as such
these are considered ‘business as usual’
including, health, safety and environmental
protection, high-quality build, an excellent
customer service journey for all customers
and partners and a keen focus on cost.
Over and above the fundamentals, we have
a number of specific focus areas for 2025:
•
Continue to improve build efficiency
and compliance:
protecting the value
we create means enhancing efficiency and
extracting economies of scale to deliver
best practice across the Group. Build
compliance and standard processes
are key to ensure we continue to drive
performance and optimise efficiencies.
•
Deliver sales performance and
optimise price:
our teams are
incentivised to drive value as we continue
to optimise the balance between sales
rate and price.
•
Drive outlet openings:
business-wide
focus on delivering new quality outlets
efficiently to support execution of the
growth opportunity, with asset turn and
return on capital front of mind. We expect
to open more outlets in 2025 than in 2024
with outlet openings to be weighted
towards the second half of the year.
•
Further digitise our processes to drive
efficiencies and future proof the
business:
we are developing our IT
capabilities via our Innovate
TW
programme,
with a focus on digitising our processes
to create the platform to deliver greater
business-led innovation, using technology
to share best practice quickly across
the Group.
•
Employee value proposition:
our industry is facing a skills shortage,
and we continue to work hard to attract
and retain the best people. Our revamped
employee value offer outlines the benefits
of working for Taylor Wimpey, including
development and training for all our
employees and additional enhancements
to our family policies, including
improvements to maternity, adoption,
paternity, and the introduction of paid
carers leave.
•
Deliver against our environmental
targets and commitments in our
Environment Strategy and Net Zero
Transition Plan:
environmental
performance is growing in importance
and, like health and safety, is a key priority
for Taylor Wimpey. Increasingly we need
to extend our environmental performance
data to ensure we can comply with
changing regulation and drive progress
on our sustainability commitments.
15
Strategic report
Directors’ report
Financial statements
Shareholder information
Health and safety is non-negotiable at
Taylor Wimpey. While I am delighted we continue
to perform very favourably against the sector,
and once again 98% of our employees believe
we take health and safety seriously, there is
always more that we can do. Our Annual Injury
Incidence Rate (per 100,000 employees and
contractors) of 212
A
has increased from 151,
as a result of minor slips, trips and falls. This will
be an area of increased focus this year.
I am delighted to report that in 2024 62 of
our Site Managers were awarded National
House-Building Council (NHBC) Pride in the
Job Quality Awards, with 16 Seals of Excellence
and two Regional Awards. This year our Site
Manager David McClure, from our Castle
Gate development in West Scotland, was also
honoured with the NHBC Supreme Award in
the Large Builder category, one of the highest
industry accolades.
Quality housing makes a positive difference
across almost every area of life including
educational attainment and better health
outcomes, and is one of the key contributors to
economic growth, at both a local and national
level. We are pleased to see the recognition from
Government of the importance of the sector and
we are playing our part in the delivery of that
much needed growth. In 2024, we contributed
£345 million to local communities in which we
build across the UK via planning obligations
(2023: £405 million). This funded a range of
infrastructure and facilities including affordable
housing, green space, community facilities,
commercial and leisure facilities, transport
infrastructure, heritage buildings and public art.
An agile strategy
We are a cyclical business and so our strategy is
set up to manage the cycle effectively, building
a stronger and more resilient business and
optimising trading conditions. This includes
our differentiated capital allocation policy which
our shareholders continue to benefit from,
with £339.4 million paid in dividends in 2024
(2023: £337.9 million). Over the last ten years
we have returned £3.7 billion to shareholders.
Our strategy remains consistent and is centred
on four strategic cornerstones which can be seen
on page 7. These strategic cornerstones guide
our principles of working while allowing us to
be agile to respond to opportunities and risk
in changing market conditions.
In this year’s Annual Report and Accounts we
have extended out our business model to give
more insight into how our business operates
including the challenges we face at each stage.
You can find this on pages 20 to 29.
Fit for the future
While short term market conditions remain
uncertain, the long term fundamentals remain very
strong with an increasingly marked undersupply of
housing estimated at over four million homes, that
is particularly acute in some areas of the country.
Being fit for the future includes making sure we
have the strategy and structures in place across
all areas of our business to build the capacity to
support our ambition for growth, focusing on
areas we can control.
The changes to the NPPF introduced by the
Government, will require local authorities to
identify land to meet the housing needs of their
area for a five year period. Required housing
need is now based on a stock-based approach
(a proportion of existing housing in each region),
which has removed ambiguity and increased the
national total annual approvals required to 370k
plots per year. If a local authority is unable to
provide evidence that it has a five year housing
land supply, there will be presumption in favour
of sustainable development.
We are optimistic that these changes to the
planning system should help unlock the land
needed to support homebuilding in coming years
placing the land market on a similar footing to
that of 2012 to 2019 when land conditions were
supportive of industry growth. For our part, we
are focusing on the proactive submission of
high-quality applications to planning authorities
to best position Taylor Wimpey to benefit from
upcoming improvements to the planning process.
As at 31 December 2024 we had c.26.5k
such applications for first principle planning
determination in the planning system (2023:
c.30.2k), with a significant number to follow.
This will translate into more outlets which will
provide future opportunities to grow volumes.
In 2024, we continued to focus on embedding
the operational efficiencies and savings we have
delivered over the last few years and this remains
an ongoing focus. However, we also put in place
many of the building blocks to prepare for the next
phase of the market and enable us to grow our
volumes, with market demand, including investing
in aspects key to the long term sustainability of
the business, to ensure we are fit for the future.
For example, in 2024, we delivered cost savings
through our measured value improvement
programme. We identified savings in certain
product types and by omitting products from
certain supplier contracts to source more
efficiently elsewhere. We continued to drive
standardisation through Taylor Wimpey Logistics
(TWL), our logistics function, and by driving
greater conformity to our standard house types,
which comprised 94% of our 2024 home
completions excluding apartments (2023: 90%).
TWL is a key differentiator and remains integral
to our drive for increased efficiency and
standardisation. TWL holds strategic stocks and
Chief Executive’s statement continued
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
Taylor Wimpey plc
Annual Report and Accounts 2024
16
then provides build packs that can be called off
on a ‘just in time’ basis for site. This improves
control, consistency of supply and also provides
a buffer for our regional businesses, which
received orders 98% on time in full from TWL
in 2024. This enhances the efficiency of our
operations as well as visibility for our site teams
and subcontractors. In 2024, we installed a new
warehouse management system to future proof
our facility and further increase efficiency
and quality.
During 2024, we delivered the first kits as planned
from our ISO 9001 accredited timber frame
manufacturing factory. This has been a strategic
component of the ability of our businesses to scale
up and to also increase sustainability. In combination
with our existing suppliers, our own facility will help
us in our goal to increase timber frame usage to
30% of our completions by 2030.
The industry is facing a significant skills shortage.
We are pleased to have highly skilled and
engaged employees (with a 93% engagement
score in 2024 and in 2023) and in 2024,
we launched a compelling employee value
proposition, to ensure we will continue to attract
and retain the best people, a key component
of our preparedness for the future.
We are developing our IT capabilities via our
Innovate
TW
programme with a focus on improving
our processes, increasing business-led
innovation, and using technology to share
best practice quickly across the Group.
Our team are working to identify actionable
ideas from over 260 received from employees so
far. We have also employed artificial intelligence
(AI) to simplify tasks and free up employee
time for more value added activities, such as
supporting our customers, monitoring build
programmes and ensuring build quality and
closely scrutinising costs.
New workstreams are designed to enable us
to optimise our operations in a sustainable way.
Continuous business improvement remains
key to protecting stakeholder value against
a backdrop of increasing regulatory and
economic demands. This includes increased
standardisation and use of modern methods
of construction such as timber frame.
You can read more about these areas on
page 29
Current trading and outlook
The start of the Spring selling season trading
has been robust and we have seen good levels
of demand for our homes.
Appointments and overall customer interest in
our homes remain at healthy levels, supported by
our quality product, site locations and focused
sales and marketing efforts. There is good
mortgage availability at competitive rates as
lenders remain committed to the mortgage
market. As a result, the encouraging sales
performance seen towards the end of 2024
has continued in the year to date.
The year to date net private sales rate (w/e
23 February 2025) is 0.75 per outlet per week
(2024 equivalent period: 0.67), up 12% year
on year. We have seen some incremental
improvement in market pricing since the start of
the year with current pricing flat year on year.
The cancellation rate is 16% (2024 equivalent
period: 12%) and the number of down valuations
remain low.
As at 23 February 2025, our total order book
excluding joint ventures was £2,255 million
(2024 equivalent period: £1,949 million),
comprising 8,021 homes (2024 equivalent
period: 7,402 homes).
We have a strong landbank in place, and an
excellent strategic pipeline with over c.26.5k plots
for first principle planning determination in the
planning system as at 31 December 2024
(2023: c.30.2k). We were more active in the
land market than expected in 2024, approving
c.12k plots (2023: c.3k plots) which, as previously
reported, partly reflects an increase in attractive
opportunities brought forward in the run up to the
Budget. We will remain active and opportunistic
in our approach to land acquisition in 2025.
As previously stated, we have begun to see
modest build cost inflation and we expect this
to be low single digit for the year, depending on
the response from our subcontractors to rising
employer costs. We will continue to work with
our supply chain to identify opportunities for
savings across the business.
Chief Executive’s statement continued
Scan to see Chief Executive
Jennie Daly and
Group Finance Director
Chris Carney presenting
our Full Year 2024 results
While appetite for Section 106 affordable housing
continues to be impacted by headwinds faced by
Housing Associations, we have good visibility on
this year’s affordable deliveries.
Overall, given the strong order book and
confidence in delivery of our plans, we expect
2025 performance to be in line with market
expectations
¹
. This reflects 2025 UK completions
excluding JVs in the range of 10,400 to 10,800,
with approximately 45% occurring in the first half
of the year. Margin in the first half will reflect
weighting of completions over the year, the
impact of underlying pricing in the order book at
the start of the year (which was c.0.5% lower
year on year) and build cost inflation.
Looking ahead, we operate in an attractive
market, with significant underlying demand for
the quality homes we build. We have a clear
strategy focused on driving value and operational
excellence while investing in the long term
success and sustainability of the business.
We have a strong balance sheet, excellent
landbank and experienced teams and are well
positioned to deliver sustained growth.
Jennie Daly CBE
Chief Executive
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 94 for definitions.
1
As published on 24 February 2025, the Company compiled consensus expectation for full year 2025 Group operating profit* is £444 million.
17
Strategic report
Directors’ report
Financial statements
Shareholder information
Creating
stronger,
thriving
communities
Together with thousands of
subcontractors and partners,
we do work that matters every
day – not just for our customers,
but for local residents and the wider
communities, supporting important
charities and local organisations
to make a lasting difference.
Our purpose is to build
great homes and create
thriving communities.
This is a shared purpose across our whole
business and value chain. It is not only vital for
our customers but has far reaching societal
impacts of which we are extremely proud.
It is not always well understood the very real
benefit that housebuilding can bring to a local
area. Our new housing developments drive
economic growth and positively benefit local
communities. The HBF estimates that in England
and Wales the new housebuilding industry
contributes around £53 billion per year in
economic activity and provides around 270k
direct jobs, with many more employed indirectly
in various roles across our supply chain. New
quality housing is vital to our progress as a nation.
It contributes to improved economic and social
mobility, community cohesion, better health
outcomes and increased educational attainment.
In 2024 alone, Taylor Wimpey contributed
£345 million to local communities in which we
build across the UK via planning obligations
(2023: £405 million). This funded affordable
housing, green space, community facilities,
commercial and leisure facilities, transport
infrastructure, heritage buildings and public
art underlining our purpose to build great
homes and create thriving communities.
During 2024, we continued our partnership
with our national charities as well as local charity
partners across the UK. Our national partners
are Youth Adventure Trust, Every Youth, Crisis,
CRASH, Magic Breakfast, and St Mungo’s.
In total, during 2024, we donated and
fundraised c.£1 million for registered charities
(2023: c.£1 million). This included supporting
St Mungo’s Construction Skills Training Centres
to help people recovering from homelessness,
gain new skills and find employment in the
construction industry.
Being part of the local community is important
to us and to date we have engaged with
550 schools, reaching 330,000 children via our
schools outreach programme. We worked with a
specialist company to help our regional businesses
develop links with schools in a more targeted way
to promote careers in our sector. In addition,
through our partnership with Magic Breakfast
we contributed £80k to help serve over 285k
breakfasts to pupils in England and Scotland
from September 2023 to September 2024.
>3,000
washbags collected for CRASH’s
Christmas washbag campaign for
homeless charities
355
employees took part in the tenth
annual Taylor Wimpey Challenge
raising a total of £157k in 2024
(2023: £146k) and reached the
£1m milestone for total funds raised
Adding value
18
Taylor Wimpey plc
Annual Report and Accounts 2024
Infrastructure improvement to
benefit all local residents
New facilities including:
•
Local nursery:
Providing over 160 places
•
New sports centre:
6,000 sqm
state-of-the-art sports centre
•
NHS Hub:
Providing accessible healthcare
services to the community, improving
public health and wellbeing
•
Marketplace:
Delivered in January 2025,
the vibrant marketplace was developed to
encourage local vendors and artisans to sell
their goods, fostering local entrepreneurship
and community engagement
•
Commercial units:
Constructed to support
local businesses and to provide opportunities
for new enterprises to thrive in the area
Local employment and job creation:
4,630
total number of all jobs created
32
new trade apprenticeships
30
work placements
Education
Female staff from Taylor Wimpey and
our subcontractors spoke to over
100 year 5 and 6 children about their
work in the industry, including the different
roles available and shared the barriers
they faced to inspire them to follow
their dreams.
Collaborated with 15 local educational
institutions and participated in over
30 careers fairs and workshops within
the local borough to promote diverse
careers, challenge stereotypes and
assist in curriculum development.
15
local institutions collaborated with
Stimulating local economies
Local spending:
c.£3m
investment in local suppliers, through
our subcontractors, and service
providers, supporting local businesses
Community Infrastructure Levy and
Section 106 planning payments:
£6.5m
contribution to local infrastructure projects
and community facilities, affordable
housing, and public services that
directly benefit the local population
Community investment includes:
• Donations to the Winter Spaces project
and towards the Leyton Orient Trust
para sports event
• Local charity organisations
Coronation Square in London
brings to life our role as
a partner and in creating
thriving local communities.
Adding value continued
19
Strategic report
Directors’ report
Financial statements
Shareholder information
We are one of the UK’s leading
national homebuilders, operating
at a local level from 22 regional
businesses. We also have a small
operation in Spain.
1
What we do
Read more on
pages 21 to 22
2
How we make money and invest
Read more on
pages 23 to 25
4
How we are evolving
Read more on
page 29
3
Critical resources and relationships
Read more on
pages 26 to 28
We manage the homebuilding process throughout
the value chain,
from original land investment decision
to after sales service. We are providing additional detail on
our business model this year, to explain what we do and
help frame our strategic decisions based on the strength
of our business model.
Our business model
Taylor Wimpey plc
Annual Report and Accounts 2024
20
1
2
3
4
Our business model continued
We buy land at the right price, using our longstanding land
and planning expertise, creating high-quality developments
in places customers want to live. Our teams understand
local housing needs and are able to select the right
locations and develop these through the planning system.
How we identify land opportunities
We consider the macro and micro location of our land.
For example, the macro location may be city, broken down
by major suburb, town, village or rural area. The micro
location is then the position within the macro location.
We use an internal rating system ranking our sites
to ensure we identify the most suitable locations.
This approach applies to how we continue to target
high-quality locations both in the short-term market
and strategic intake.
Detailed upfront financial assessment
Before we bid for land, we conduct a detailed commercial
assessment called a land purchase exercise (LPE). This
incorporates analysis of local demographics, a full costing
of the site to development and specific commercial and
technical considerations. Site evaluation involves several
teams, including land, sales and marketing, commercial,
production, technical and finance.
It includes our assessment of risks and culminates in
a detailed assessment of the income, profit, margin
and return on capital that a development is expected to
generate, which we then monitor throughout the process.
Each successful land proposal is assessed and approved
by our Chief Executive.
Our regional businesses assess the potential of land and
calculate the cost, taking into consideration building density
and infrastructure requirements. To protect our margin and
ultimately turn a profit, we must tightly manage costs from
onset and through each subsequent stage in the process.
Quality is key to protecting our reputation and the
sustainability of the business and is therefore a focus
across our operations. We also pride ourselves on
providing a positive experience for customers throughout
their buying journey.
Our teams work closely with local authorities
and other regulators to meet increasingly
complex technical, environmental and health
and safety requirements. We strive to open
our sites as efficiently as possible; however,
the time between buying land and opening
our sites is dependent on site-specific
planning status and conditions. Planning
has been difficult over the past few years.
However, we expect changes to the planning
system from the NPPF that took effect at
the end of 2024, to help underpin land for
housing delivery over the coming years.
Read more on pages 16 and 34.
Working with communities
It is important to consult communities in our
process. While housing is much needed,
we realise development can be disruptive
to local communities. We work hard to
showcase the benefit to local communities
and the employment and economic activity
they create. With biodiversity net gain our
developments increasingly add to the
local environment. We held over 100
community meetings and events in 2024.
Working with local
authority partners
Short term land will always have some form
of residential planning permission. For
example, ‘resolution to grant’ (RTG) status
or ‘outline planning’ means that residential
development is permitted, but the nature of
that development (aesthetics, housing mix,
density etc.) is still to be agreed. Progressing
our land from those stages to ‘implementable
planning’ (when we are permitted to start
on site), can take months or even years.
During this process our land, design,
technical, production and legal teams
consult with local authority partners and
other interested parties to resolve issues
and achieve the required permits.
Preparation for infrastructure
Appropriately, there is a significant
administrative burden to overcome before
we can begin building. For example, we must
work with National Highways, services such
as electricity, water and sewers, and establish
infrastructure such as roads before we can
start building.
Detailed planning
Achieving ‘detailed planning’ status and then
satisfying any pre-commencement conditions
allows us to attain ‘implementable planning’
and start building.
Throughout the planning process, we engage
and consult with local communities and
relevant stakeholders. Universal acceptance
may not be achieved, but we do our best
to outline the benefits of our project and to
minimise disruption.
Resolving issues
Planning can, of course, be a contentious
area. Our developments are sometimes
challenged, and we may need to collaborate
with local residents and authorities to resolve
issues. We will appeal decisions through the
legal system if a project has stalled, yet we
are fully meeting our obligations.
Affordable housing and
community facilities
In 2024, 22% of our UK completions
were affordable housing (2023: 23%).
We deliver significant local economic
benefits, including employment, and through
our planning obligations build or fund the
building of numerous schools, and leisure
and recreational facilities.
Strategic land pipeline
Alongside our landbank, our strategic pipeline allows us
to develop land in a balance sheet-efficient way. We own
around a quarter of our strategic pipeline and control the
remainder. For the controlled portion, we pay a fee which
gives us the option to buy land at certain milestones.
We buy this land when we have achieved certain planning
status, typically at a small discount to market value. This
enhances our visibility of land supply, helps protect our
margins and allows us to be selective in the land market.
Sustainability
Sustainability is a key consideration in our landbuying.
We consider how land relates to placemaking, ensuring
it is in the right location to provide customers with good
access to infrastructure and facilities, and access to nature.
We design and deliver schemes that become successful
and sustainable new communities, where our customers
can enjoy a good quality of life. We also look at ways to
mitigate social and environmental risks such as flood risk
as part of our early evaluation.
Highly experienced teams
We develop two main types of land. Short term land has some
form of planning for residential development, though it may
still be months or years from reaching implementable planning
status which would allow us to build. We are also highly
experienced in developing strategic land, which, at the time we
acquire it, has no form of approval for residential development.
Our highly experienced strategic land teams often work
on land long before it is earmarked for development.
There can be no certainty that strategic land will achieve
planning permission, which is why most of our strategic
pipeline is not owned but is controlled via option
agreements. We only include plots in our pipeline which
we believe have greater than 50% probability of success.
As at 31 December 2024, 56% of short term land
originated from our strategic land pipeline (2023: 54%).
c.79k
plots in the short term landbank
as at 31 December 2024 (31 December 2023: c.80k)
Make the right land investments
Manage the planning process
What we do
21
Strategic report
Directors’ report
Financial statements
Shareholder information
1
2
3
4
Our business model continued
What we do
Support customers through
the buying process
Our highly trained and dedicated sales teams use our
customised Microsoft Dynamics customer relationship
management (CRM) system to identify high-quality
customers and optimise conversion and service levels
throughout the buying journey. This includes real time
dashboards, lead scoring and management reporting.
Our sales teams understand and meet customer
needs by offering a range of tailored solutions.
These could include selling schemes to assist the
buying journey or home personalisation.
Our responsibilities do not end when we have
completed a home sale. Our Customer Relations
Manager is available to our customers. We also
provide a two-year warranty that covers any defects.
We have worked on processes to enhance our
customer service including extending our customer
contact to well beyond the sales period (read more
on page 47).
Design and develop
sustainable homes
We design homes to meet the needs of our customers
today and in the future. Our energy-efficient homes
meet or exceed regulatory requirements, and our
finished sites exhibit greater biodiversity than prior
to our involvement.
We use the digital platform LEADR (Land and
Environment Assessment of Development Risk),
to assess and manage sustainability and technical
risks associated with land during the acquisition and
construction process (read more on page 65).
We consider how our developments work as a whole
and how they will contribute to a thriving community.
Good placemaking, which involves attractive landscaping
and shared communal and recreational areas, means
that our customers can live well, feel part of a community
and adopt active, more sustainable lifestyles. We design
carefully considered street scenes, and consider how
our developments interact with nature.
Good plotting means we are using our land resources
efficiently, while our standard house types – designed
following extensive consumer research – help us
maintain high-quality through contractor familiarity
with our processes and materials.
Our developments factor in biodiversity net gain,
meaning our completed sites are required to have 10%
more natural habitat than when we acquired them.
We work to prepare for when new regulations are
implemented, such as the proposed Future Homes
Standard. When in place, we will build all-electric,
zero carbon ready homes. Having successfully trialled
these homes in 2023, we are well positioned to adapt
when the new regulation comes into place, the timing
of which is yet to be determined.
10%
habitat net gain required on our new sites
(or equivalent contribution)
How our structure adds value
We are a leading UK homebuilder with a
national reach, operating at a local level.
We are financially strong with an excellent
balance sheet and a net cash position. We
have committed and experienced teams,
a high-quality landbank and strategic pipeline,
providing visibility and growth potential.
As a national homebuilder we have
operational efficiencies and benefits of scale
due to standardisation and bulk purchasing.
Our business benefits from a shared
purpose and is underpinned by a strong
Group culture and values.
Underpinned by strong culture
Our values of respectful and fair, take
responsibility, better tomorrow and
be proud, guide the way we work at
Taylor Wimpey. We work hard to maintain
our culture and regularly survey our
employees to ensure we are on the
right track. We have a high employee
engagement score of 93%. Not only is
this key in driving high performance, but
it is also vital in attracting and retaining
high-quality people in an industry with a
recognised skills shortage. Further details
on how the Board assesses and monitors
our culture can be found on page 115.
Clear and efficient
operating structure
We have a clear operating framework
with key controls in place to maintain
consistency across our operations,
benchmark best practice and achieve
efficiencies. This includes non-negotiable
processes covering areas such as health
and safety and compliance. This is key to
maintaining high standards and driving
value and mitigating risk. We have Group
department heads for the key operating
functions to ensure we are applying
consistent standards and best practice
across the business. There is strong central
oversight from the GMT and health and
safety and legal, with the key Group
functions including commercial, finance,
technical, production, customer service,
sales and marketing and land and planning
supporting the regional teams. Further
details on our risk management processes
and internal controls can be found on
pages 82 to 84.
The Board is responsible for establishing
and monitoring our strategy, and looks
to the Group Management Team (GMT),
comprising our Chief Executive, Group
Finance Director, Group General Counsel
and Company Secretary, five Divisional
Chairs and Group Human Resources
Director to implement strategy on a day
to day basis.
Our Divisional Chairs oversee five divisions:
Scotland and North East and North
Yorkshire; North West and Yorkshire;
Midlands and Wales; London and South
East; and Central and South West. These
cover 22 UK regional businesses that are
managed by a regional Managing Director
and a management team representing the
key functions.
Supporting the
regional businesses
The main purpose of the central Group
functions is to support and optimise
operating conditions for our 22 UK
regional businesses.
The regional businesses benefit from our
strong trusted brand and national supplier
relationships. Our internal logistics function,
TWL provides hub and spoke distribution
to our regional businesses to improve
efficiency and security of supply. In addition,
our timber frame production, Taylor Wimpey
Manufacturing, located in close proximity
to TWL, is working to help address a critical
business dependency.
Build efficiently and
deliver for customers
Accurate budgeting and active management enable
us to set up our sites to deliver on our targets. Our
Taylor Wimpey Logistics and central procurement
functions enable us to operate consistently and
efficiently. Standard house types comprise the majority
of our build which helps us drive efficiencies and
ensure quality.
We recently established our own timber frame facility,
which will provide efficiency benefits and help reduce
our carbon footprint (read more on page 29).
Maintaining excellent supplier and subcontractor
relationships is how we keep up our high standards,
and reputation as the ‘partner of choice’. The health
and safety of our employees and subcontractors is
always our number one priority.
Our ‘right first time’ approach to building results in strong
customer satisfaction scores. We are regularly one of
the highest independently rated volume homebuilders
in terms of construction quality.
Taylor Wimpey plc
Annual Report and Accounts 2024
22
1
2
3
4
Our business model continued
How we make money and invest
Generating cash
We make money by buying land, developing it
through the planning system and completing the
sale of a home to our customers. There is typically
a period of several years between our initial land
investment decision and the moment we realise
our return. However, as an established business,
our constant flow of maturing land investments
allows us to cycle capital more efficiently than
would be possible from a standing start.
We work hard to establish the economic
parameters of a development before committing
to an investment decision. In every case, our
experienced teams identify land where potential
customers want to live. Afterwards, our expertise
and tight operational controls allow us to enhance
and protect that value throughout the value chain.
In the early stages of a development we
deploy capital to develop infrastructure such
as, services, sewers, gas, electricity, water,
telecommunications, supply roads, and general
landscaping. When we have established early site
infrastructure, we typically build our sales centre
including a number of show homes. We call this
sales centre, together with the homes an ‘outlet’.
We typically begin our selling processes when we
have opened our outlet, allowing customers to
experience examples of the homes we will build.
We sell ahead of and alongside production to
ensure we are protecting capital and not building
up excess stock. Forward sales provide good
security for future income, but we do not receive
funds until we have handed over the keys to
our customers.
Our 22 regional businesses have a good deal of
autonomy and are charged with managing capital
efficiently. Our ‘bottom-up’ budgetary process
ensures accountability – each regional team
agrees its budget first with the Divisional Chairs,
and then with the Chief Executive and Group
Finance Director.
Each regional business has tight WIP controls in
place, with oversight from our Divisional Chairs
and Executives. Each regional business monitors
site sales rates and other demand indicators to
ensure it is deploying the appropriate level of
investment in its build programmes. This is key,
since once we start foundation works on a home,
we have begun the WIP investment cycle that
will last around nine months until the home is
completed. In addition, we invest in building
infrastructure such as roads, services and public
facilities. Therefore, it is vital that we manage WIP
effectively, releasing investment that appropriately
reflects the demand environment we are facing.
Land
Our land investments can be with us for several
years, so it is vital we get it right. Every potential
land investment is reviewed for sign off by
our Chief Executive, ensuring tight control over
Group capital. Our experienced land and regional
management teams conduct a detailed
assessment called a Land Purchase Exercise
(LPE) to determine the amount we are prepared
to bid. The LPE is presented to our Chief
Executive and other senior management who will
provide the challenge and scrutiny necessary to
ensure we are invested in the right areas, at the
right returns and with the appropriate risk profile.
The weighting of land investment will depend
on where we are in the market cycle and the
prevailing planning backdrop. Over the longer
term, continued investment in land is important.
However, our strong landbank means we can
flex the timing of land investment decisions.
For example, we approved a very limited number
of land deals between the second half of 2022
to the end of 2023. There was a higher level of
land approvals in 2024, given opportunities for
high-quality deals, particularly in the run up to the
Autumn Budget. Not all land investment is made
equal. For example, we could choose to either
convert our strategic pipeline, where we have the
exclusive option and a one on one negotiation
with the land vendor, or invest in land available
on the open market. Decisions will depend
on the market backdrop and the prevailing
planning conditions.
Dividends
We have a defined, differentiated Ordinary
Dividend Policy to give investors strong visibility of
the returns they can expect throughout the cycle.
Capital allocation decisions are based on our long
term goals, as well as what we are seeing on
a day to day and month to month basis in our
market. There is a decision hierarchy that defines
how we allocate capital. Our first priority is to
ensure we have a strong balance sheet at all
times. We must then satisfy the requirements
of the business for investment in land, WIP and
business needs. We are then able to offer returns
to shareholders via our Ordinary Dividend Policy.
Any excess cash will also be returned to
shareholders at the appropriate time in the cycle.
We seek to drive continuous improvement and
efficiency benefits through a relentless focus on
operational excellence throughout the business.
Operational excellence is a key strategic
cornerstone for Taylor Wimpey and is therefore
embedded in our culture and the way we work.
Our land is a valuable asset, so it is vital we work
hard to optimise its value for all our stakeholders.
As previously stated, we establish expected
returns at the outset and to protect and optimise
our margin and returns, we must tightly manage
costs throughout.
With an efficient standard house type range,
consistent processes, and the ability to leverage
the only logistics business in the sector, we are
able to drive efficiency and stakeholder value.
A cost control mindset is embedded in our
business, and we have installed management
information systems and leveraged IT to drive
further efficiencies.
Operational excellence is not just about driving
efficiencies and cost savings, it is equally about
raising and maintaining high standards to ensure
we are delivering high-quality homes and
excellent customer service. Both are key to
protecting our reputation and the sustainability
of the business.
Allocating and recycling capital
Focus on operational
excellence
23
Strategic report
Directors’ report
Financial statements
Shareholder information
Our business model continued
1
2
3
4
How we make money and invest
Generating cash
Optimising margin
Key costs
Our key costs include land, labour, building materials
and central overheads including design, finance, legal
and administrative functions. We operate with tight cost
discipline and, over the past few years, have invested to
improve management information systems, enabling us
to keep close control of costs across our business.
Against a backdrop of rising regulatory costs, we work
on continuous business improvement to find efficiencies
and cost savings. This allows us to optimise margin in
times of higher demand while minimising margin impact
in times of lower demand. As stated, standardisation,
via our standard house types will help us drive
efficiencies. Increasing subcontractor familiarity with
our processes enables us to build right first time.
Using industry-standard products and procedures
helps us to achieve economies of scale from our
suppliers. Both factors help us control our costs.
In recent years, our margins have been negatively
affected by falling effective demand and rising costs.
If cost increases are not met with rising house prices,
as has happened in recent years, there is an inevitable
impact on margin.
Upgrade options and financial incentives for our
customers are a useful tool to cement interest,
particularly in weaker markets. We carefully manage
incentives since these directly impact our profit margin.
For transparency, we have stated reported selling prices
net of incentives.
Capacity for growth
While optimising margin is critical, we have maintained
a national footprint, capable of delivering sustained
growth. As volumes increase, there is the potential
for improved overhead recovery.
Capacity for growth includes our approach to use
of modern methods of construction and off site
manufacturing for certain components of our build
such as timber frame for which we have recently
established our own factory.
Read more about our performance through our key performance indicators on pages 39 to 49 and about
our Principal Risks on
pages 85 to 90
Health and safety is our non-negotiable priority on
site, and we focus on implementing high safety
standards and training our employees and
contractors. We have driven consistently high
build standards and remain a leader in the volume
industry in the independently assessed
Construction Quality Review (CQR) measure.
We have invested in our customer service to drive
both quality and service, through training provided
by our internal academies. We are working
throughout the business to ensure we are well
prepared meet the challenges of changing
regulations well ahead of their implementation
(read more on pages 35 and 36).
When we progress to build stage, day to day
responsibility passes to the site management
team, with oversight from the regional teams.
Ultimate responsibility resides with the
regional MD.
The commercial team ensures that costs
of labour and materials are as expected,
with regular updates provided by our Quantity
Surveyors. Managers have access to an
information dashboard throughout the life of
a development which allows them to control costs.
The Group has national framework agreements
in place to access economies of scale, and to
ensure consistent quality. TWL provides ‘build
packs’ that can be requested on a ‘just-in-time’
basis by site teams, ensuring standardisation
and security of supply.
Typically, our sites are managed by Taylor Wimpey
employees. However, given that we are regularly
opening and closing sites, it is important to have
a flexible cost base.
Therefore, the vast amount of our day to day
labour is provided by subcontractors. These
subcontractors like to work with us because
of our efficiency, visibility of earnings, and our
no-compromise approach to health and safety.
During 2024, on average c.9.4k operatives
worked with us on our sites.
Focus on operational excellence continued
c.9.4k
average number of operatives
managed by our site teams
(2023: c.9.3k)
In 2024, we delivered
10.6k
Group completions (including JVs) (2023: 10.8k)
Group operating profit margin*
12.2%
(2023: 13.4%)
Taylor Wimpey plc
Annual Report and Accounts 2024
24
Investing in our
long term success
Sustainability is a key strategic cornerstone for our
business. We protect the long term sustainability of
the business by investing in our customer offering,
in our employees and in our systems and processes.
While we seek to grow, we want to do this in a
responsible way, including protecting our environment,
and it is our target to reach net zero in our operations
by 2045. Our timber frame facility is a good example
of how we have invested in both efficiency
(Operational excellency) and environmental
performance (Sustainability).
In 2024, we launched Innovate
TW
, a Company-wide
programme aimed at transforming the way we use
technology, freeing up our employees from routine
tasks to allow them to focus on areas of greater value
to the business (read more on page 44).
Prior to this we launched our Microsoft Dynamics
CRM system, which significantly enhances our ability
to support customers.
Over recent years we have invested in Touchpoint, an
online platform where customers can track the progress
of their homes, order options and interact with us.
The integration of Touchpoint with our CRM makes us
more responsive, improves data capture and allows us
to generate notifications for our sales executives and
diarise key customer contact points.
We have continued to advance our training capabilities,
bolstered by a number of best practice academies.
We also continue to invest in business improvement via
standardisation and procurement, and in implementing
operational best practice and benchmarking.
£339m
paid in dividends to shareholders
in 2024 (2023: £338m)
Our business model continued
1
2
3
4
How we make money and invest
Reinvest and return
By protecting and optimising value throughout the value chain, we are able
to both return capital to our shareholders and reinvest in our business.
Our Ordinary Dividend Policy is to return 7.5% of net assets, or at least
£250 million, to shareholders annually, throughout the cycle. In 2024,
we returned £339 million to shareholders through ordinary dividends
paid in the year (2023: £338 million).
25
Strategic report
Directors’ report
Financial statements
Shareholder information
Our business model continued
1
2
3
4
Materials
Our key materials include brick, cement and concrete,
timber and roof tiles. We extensively use external and
internal doors, windows and insulation, and increasingly
use solar panels on our homes.
We use a small amount of steel, mostly related to
fixings. Other common materials include gypsum
(plasterboard), flooring, kitchens, sanitary ware and
white goods. We seek to minimise supply chain
disruption by operating at least a dual supplier
strategy for key components.
Land and environment
Land is our key resource underpinning our ability to
fulfil our purpose of building great homes and creating
thriving communities.
It is important that we work with land and our local
environments in the least disruptive way possible to
provide attractive places to live for our customers and
help preserve the UK’s biodiversity.
Building can be disruptive to the natural environment
and construction is a major contributor to carbon
emissions. We have targeted becoming net zero carbon
by 2045, five years ahead of the Government target.
Our developments will now add to natural habitat
(by at least 10% on site or via offsets where this is
not achievable on site).
Our Environment Strategy, Building a Better World,
includes ambitious targets up to 2030 in relation to
climate, nature and resources, and waste. We are
targeting reaching net zero emissions by 2045.
Net zero
carbon targeted by 2045, five years
ahead of Government target
Workforce
Taylor Wimpey UK has around 4.3k employees.
We have highly experienced and dedicated teams
throughout our 22 regional businesses and in our
head office, with expertise in land and planning, legal,
commercial, production, technical, design and sales
and marketing.
We manage each of our sites with our own team of
Site Managers, sales teams, health and safety personnel
and Production and Technical Managers.
We also provide employment for thousands of
skilled tradespeople, working with, on average,
c.9.4k operatives in 2024 (2023: c.9.3k).
Regulatory and
legal environment
We recognise the need for updated regulation to tackle
areas such as limiting climate change and we regularly
cooperate with the Government on consultations
around topics such as fire safety, the planning system,
and changing building regulations such as the Future
Homes Standard.
c.26.5k
applications for first principle planning
determination in the planning system
as at 31 December 2024 (2023: c.30.2k)
Taylor Wimpey plc
Annual Report and Accounts 2024
26
Critical resources and relationships
Resources
Our business model continued
1
2
3
4
Suppliers and subcontractors
Our suppliers and subcontractors play a major role in
our business. We choose suppliers carefully, selecting
partners that share our values. We have quarterly
meetings with all UK national suppliers. We provide
training and support for subcontractors in areas such
as health, safety and environment and engage with
them in product development. We increasingly help
them fulfil their environmental requirements and assist
in finding new talent such as apprentices.
Group suppliers are required to confirm compliance
with our standards via our digital tender system. Our
subcontractors sign up to Taylor Wimpey’s code of
conduct, customer service policy, agree to our quality
standards and are added to our subcontractor portal to
enable us to accurately check progress and compliance
to the required service level agreements.
Subcontractors working on our sites receive guidance
on respectful workplace practices during their induction.
100%
of suppliers required to sign up
to our code of conduct
Government
We work with central Government on issues connected
to the UK housing and business agenda. We use our
industry expertise to give central government our views
on proposed legislation and policy changes.
We also engage with Government agencies such as
the Environment Agency and National Highways.
Local authorities
and Housing Associations
We engage with local government across the UK as
part of the planning process for our developments.
We place significant importance on engaging with
local government as it helps us reflect local priorities
in our plans.
We engage with local authorities and parish councils
and councillors and participate in the development
of strategic frameworks, Local Plans and
Neighbourhood Plans. Wherever possible, we engage
with planners through pre-application discussions.
Housing Associations (or registered social landlords) are
key partners for us. We work extensively with housing
associations across the country to provide them with
high-quality affordable homes for their customers.
2,178
affordable completions excluding
joint ventures (2023: 2,351)
Customers and communities
Our customer proposition is closely tied to our purpose
and centres on building great homes and creating
thriving communities.
We focus on customer service and quality as key
priorities, and these are also key performance indicators
for the Group.
We have a consistent and thorough community
engagement process, with a framework in place
that provides clear procedures for all of our
regional businesses.
We engage with local communities at every site,
from planning and throughout construction, including
through meetings, exhibitions, workshops, newsletters,
information boards, social media and our website.
Engagement can be both face-to-face and virtual and
helps us create developments that reflect local needs.
Critical resources and relationships
Relationships
27
Strategic report
Directors’ report
Financial statements
Shareholder information
Our business model continued
1
2
3
4
Critical resources and relationships
Identifying stakeholder
priorities
•
Customers
require a quality product and good
service along their journey, which are key priorities
•
Investors
want share price growth, and value reliable
and transparent returns – it is in their interest that
the business is optimised at all stages of the cycle,
to enable this consistency
•
Employees
want a great place to work,
with the right remuneration and opportunities
for advancement
•
Supply
chain partners want to maximise their earning
potential in the short term, but also want to grow
alongside us and work together long term
•
Local Authorities
want an attractive environment
for their constituents, affordable homes, minimal
disruption, local employment and tax revenue.
The level of support for new development among
local authorities varies
•
Government
wants more housing that is affordable
for the UK and a planning system that supports
economic growth
•
Local communities
benefit from local employment
opportunities and facilities we provide but will want
to see minimal disruption to their lives from our build
Managing trade-offs
between stakeholders
Increasingly, stakeholders want to work with
values-based businesses. This is something that is
important to our customers, employees, investors,
local communities, government and local authorities.
Our supply chain appreciates the lengths we go to protect
their health and safety on our sites. However, while there
are many areas of shared stakeholder interest, there are
undoubtedly some trade-offs we need to evaluate.
For example, customers cannot be expected to pay
more for a house to accommodate above-market
employee pay rises, while investors will have a
preference about the size of our cost base. On the
other hand, maintaining a good working environment
and staff retention are key. Balance between these
competing demands is critical.
Annual shareholder returns are important, but so is long
term growth of the business. Therefore, there are times
when the Board will opt to invest in growth rather than
return capital to investors, over and above the level set
in our Ordinary Dividend Policy.
Safety for employees is non-negotiable and would never
be a trade-off. Relationships with communities are
important, but not all developments are welcomed by
surrounding communities. We mitigate this through
the outreach work we do, but developments can be
disruptive by nature and may still prove unpopular,
particularly during the build stage.
212
A
Annual Injury Incidence Rate
(per 100,000 employees
and contractors)
(2023: 151)
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (‘PwC’).
For further information please see page 58.
Taylor Wimpey plc
Annual Report and Accounts 2024
28
Our business model continued
1
2
3
4
How we are evolving
Evolution in the way we work
Changes in land availability and planning rules have
affected the way we do business. Good-quality
brownfield and accessible greenfield sites have
become scarcer over the years, and so we have had
to adapt the type of sites we develop.
Sites in attractive locations can often present significant
challenges in terms of accessibility for building, and
more challenging topographies, such as hilly or uneven
surfaces or challenging ground conditions. However, our
technical ability has grown to meet these challenges –
we can now develop, for example, medium-sized sites
on distinct levels, with complicated groundworks, build
routes and drainage solutions.
Incorporating more modern methods of construction
(MMC) into our process also constitutes an evolution
of our model. Up to now, modular build has proven
problematic in the UK, given the limitations of road
infrastructure. We have, however, been pursuing
componentisation, where key components are built
off site and then assembled on site.
Increasingly, we use timber frame and modular products
such as smart roofs. For our ‘room in the roof’ house
types, roof structures are largely constructed off site
and craned into place ready for tiling. Staircases and
ceiling and roof cassettes can also be added in the
same way. Many of our homes now include some
form of MMC componentisation.
Research and development (R&D)
We continue to assess the best ways of working,
including new processes and technologies that will
drive efficiencies and help us meet future regulatory
requirements. For the last few years, establishing
solutions to meet the Future Homes Standard
requirements (read more on pages 35 and 36) has
been a major focus for our R&D efforts.
Our teams conducted research to consider the most
appropriate technical specification of our house type
range, in preparation for the Future Homes Standard
(FHS), including a trial of five FHS-compliant plots in
2023. We built all-electric homes on further sites during
2024. As well as identifying new products, our R&D
efforts have helped introduce a range of new solutions
for our build processes that improve efficiency and
benefit health and safety.
Vertical integration
We have long sought to increase our use of timber
frame to benefit from greater flexibility and reduce
our carbon emissions. With limited suppliers and
increasing demand, in 2021 we foresaw a shortage in
timber frame availability, which would coincide with its
increasing importance to us in meeting our efficiency
and climate goals.
We identified timber frame as a key component on
our critical path and made sure that in removing it as
a potential bottleneck we would not create another
further down the line.
Therefore, we established our own timber frame facility
mid-2023 and delivered first kits to site in the first half
of 2024. We are scaling up production in a controlled
manner towards an ultimate expected capacity of 3,000
kits per year. In combination with our existing suppliers,
our own facility will help us in our goal to increase timber
frame usage to 30% of our completions by 2030.
Vertical integration is only of interest to us if there is a
compelling need. In this case, creating our own timber
frames addresses something in our critical path that is
not widely available, and that we are able to develop
ourselves at a competitive cost.
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial
statements. Please see page 94 for definitions.
29
Strategic report
Directors’ report
Financial statements
Shareholder information
Our market environment
A more stable
market
in 2024
We take an agile approach to manage
the cycle
, maintaining a strong balance sheet
and tight operational controls.
This section looks at our market context and outlines
some of the key drivers of supply and demand.
The new build market
With private new build completions representing
around 8% of annual transactions, the sector
remains a small segment of the overall housing
market. Drivers of demand tend to follow
the same trends in both the new build and
second-hand homes markets. Therefore, the
health of the second-hand market has a direct
impact on our sector.
New build supply is impacted by government
policy, land availability and regulation.
Drivers of demand
•
Interest and mortgage rates and
mortgage availability
– major factors in
affordability and accessibility for customers
•
Employment and consumer confidence
– affects the ability and confidence of
consumers to purchase houses
•
House prices
– impacts the affordability of
housing and the profitability of housebuilding
•
Rental cost
– influences the relative
attractiveness of ownership versus renting and
therefore affects demand for new homes
•
Second-hand transactions
– set the
price for the overall housing market and
are an indicator of the health and liquidity
of the market
•
Population growth
– impacts the availability
of housing and therefore the demand and
pricing dynamics
Drivers of supply
•
Planning backdrop and land availability
– impacts the supply and timing of land
available for building, the industry’s ability to
meet housing demand, and affects land prices
•
Government policy
– impacts the
political support for the planning system
and development
•
House prices and build costs
– impacts
the profitability of housebuilding
•
Labour and material availability
– impacts
the resources available to build new homes
•
Industry regulation
– impacts barriers
to entry
New build completions and property transactions
in Great Britain
c.8%
proportion of property transactions
over the past five years that have
been private new build
Taylor Wimpey plc
Annual Report and Accounts 2024
30
Private new home completions
Residential property transactions in Great Britain
Source: HMRC, NHBC
82,423
1,022,220
1,441,860
1,229,700
995,810
1,075,390
98,660
109,793
87,069
78,320
2020
2021
2022
2023
2024
Our market environment continued
Interest and mortgage rates:
easing of interest rates
Interest rates are one of the key tools the Bank
of England (BoE) uses to manage economic
growth and inflation. The Government mandates
the BoE to target UK inflation of 2%.
Inflation eased significantly in 2024, towards the
BoE’s 2% target, allowing the BoE to deliver two
25 basis point interest rate cuts in August and
December, with the base rate ending the year
at 4.75%.
Inflation started 2024 at 4%, reducing to 2.2% in
the summer of 2024, and as at December 2024,
it was 2.5%. Following the Government’s Budget
on 31 October 2024, the Office for Budget
Responsibility (OBR) increased its expectations
for Consumer Prices Index (CPI) inflation to 2.6%
in 2025 which exceeds the BoE target. With the
inflationary backdrop being the key element in
determining the future direction of interest rates,
expectations on the pace and quantum of further
rate cuts were scaled back.
As stated, 2024 saw two 25 basis point interest
rate cuts, the first in August taking rates down
from a peak of 5.25% to 5%, and a second
cut in November reducing the rate to 4.75%.
In February 2025, the base rate was cut by
a further 25 basis points, bringing it down to 4.5%.
4.5%
base rate as at
February 2025
2.6%
OBR expectation for
CPI inflation in 2025
Fluctuating mortgage rates are having less of an impact on monthly sales rates
excluding bulk deals
0
1
2
3
6
5
4
7
0.00
0.10
0.20
0.30
0.60
0.70
0.80
0.90
0.50
0.40
1.00
Mortgage rate %
Net private sales rate
Jan
2023
Mar
2023
May
2023
Jul
2023
Sep
2023
Nov
2024
Nov
2023
Jan
2024
Mar
2024
May
2024
Jul
2024
Sep
2024
5-year 75% LTV fixed-rate mortgages
Net private sales rate excluding bulk deals
2-year 75% LTV fixed-rate mortgages
Source: Bank of England, Taylor Wimpey
31
Strategic report
Directors’ report
Financial statements
Shareholder information
Our market environment continued
4.4%
UK unemployment,
3 months to December 2024
(3 months to December
2023: 3.9%)
2.5%
annual growth in real pay for
October to December 2024
(October to December
2023: 1.8%)
Real wage growth remaining positive through 2024
Taylor Wimpey plc
Annual Report and Accounts 2024
32
Mortgage rates reflect interest rate expectations.
Overall mortgage rate stability and affordability was
much better than in late 2022 and 2023. According
to BoE, the average monthly mortgage rate for a
five-year fixed mortgage with a 75% loan to value
(LTV) decreased from 5.71% in July 2023 to a low
of 4.07% in October 2024. Following the OBR’s
updated estimates of a more inflationary future
backdrop, the rate for the same mortgage had
ticked up to 4.38% by December 2024.
Using BoE’s average quoted household interest
rates, a 5-year fixed 75% LTV mortgage for
a £300k home with a 30-year term would have
cost £1,410 per month in July 2023 but reduced
to £1,235 per month by December 2024.
This improved affordability enabled an increase
in our net private sales rates to 0.75 per outlet
per week in 2024, compared with 0.62 per outlet
per week in 2023.
However, mortgage rates remain higher than
those seen in recent years, and this continues
to impact some customers’ ability to transact,
particularly first time buyers who generally tend
to require larger LTV ratios, where mortgage
lending rates are higher.
Overall mortgage availability remains supportive
and rates are competitive with banks continuing
to want to lend.
Demand for mortgages ticked up through
2024, with a total of 753k mortgage approvals
for the year compared with 608k for 2023.
However, this remains lower than the 853k
per year on average over the period from
2019 to 2021 (source: Bank of England).
Further rate reductions should help support more
people to access the finance needed to buy
a property and could therefore increase market
demand. However, the impact on our sales
completions will be lagged given the time taken
for sales in the order book to be converted
to completions.
Employment and
consumer confidence
A healthy level of real wage growth (in excess of
inflation) improves the affordability of homes for
our customers. Coupled with low unemployment
this can lead to increased consumer confidence
that helps boost demand for new homes.
UK unemployment was 4.4% in the three
months to December 2024. Though this reflects
a modest rise on the 3.8% in the three months
to December 2023, unemployment remains at
historically low levels (source: ONS).
According to the Office for National Statistics
(ONS), annual growth in regular earnings
was 5.9% in October to December 2024.
This translated to annual growth in real terms
(adjusted for inflation) of 2.5%. Compared
with peak house prices in Q3 2022, real
house prices (again factoring in the impact of
inflation) were c.13.2% lower as at Q4 2024
(source: Nationwide). This factors in real wage
growth of c.3.75% over that same period,
which has helped to repair affordability.
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total real average weekly earnings three-month annual growth rates in Great Britain
Source: Monthly Wages and Salaries Survey, ONS
Our market environment continued
33
Strategic report
Directors’ report
Financial statements
Shareholder information
House prices
Following a period where there were no major
differences in pricing trends between the regions,
in the second half of 2024, we experienced
weaker pricing in the South of England where
affordability has been most stretched, compared
with the North, where we captured some price
growth. As a result, we entered 2024 with
underlying pricing in the order book around
0.5% lower year on year.
Rental costs continue to rise
Rental costs are another factor that influence
demand, particularly for first time buyers. For
those with larger deposits, the monthly cost of
servicing a mortgage remained cheaper than
an equivalent rental throughout 2024. Data from
HomeLet shows that in December 2024 average
monthly rental costs were 1.3% higher than
the year before. For those with smaller deposits,
requiring higher loan to value financing, average
rental costs continue to be more affordable.
This suggests that falling interest rates should
unlock additional demand.
Second-hand transactions
According to the HMRC’s provisional estimate,
in the 12 months to December 2024 UK
residential property transactions were 1,093k,
6.8% higher than the prior 12-month period
(12 months to December 2023: 1,023k).
However, this remains below the average of 1,209k
per annum recorded between 2015 and 2019.
A normalised level of transactions should provide
additional liquidity to the market, which would
also be supportive for the new build sector.
House prices remained broadly flat in real terms (adjusted for inflation) in 2024
£100,000
£200,000
£300,000
£400,000
1986 Q4
1988 Q4
1990 Q4
1992 Q4
1994 Q4
1996 Q4
1998 Q4
2000 Q4
2002 Q4
2004 Q4
2006 Q4
2008 Q4
2010 Q4
2012 Q4
2014 Q4
2016 Q4
2018 Q4
2020 Q4
2022 Q4
2024 Q4
Real House Price
UK house prices adjusted for inflation
Source: Nationwide Building Society
£2,000
£1,500
£1,000
£500
£0
Dec 2014
Jun 2015
Dec 2015
Jun 2016
Dec 2016
Jun 2017
Dec 2017
Jun 2018
Dec 2018
Jun 2019
Dec 2019
Jun 2020
Dec 2020
Jun 2021
Dec 2021
Jun 2022
Dec 2022
Jun 2023
Dec 2023
Jun 2024
Dec 2024
Average UK rental value
Monthly mortgage 75% LTV
Monthly mortgage 95% LTV
Sources: Bank of England, Nationwide, HomeLet Rental Index
For those with larger deposits, the monthly cost of servicing a mortgage
remained cheaper than rental
Our market environment continued
Population growth continues to underpin demand for housing
0
100
200
300
400
500
600
700
800
900
1,000
Growth in population UK (thousands)
Net additional dwellings England (thousands)
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
Source: ONS, DLUHC
Taylor Wimpey plc
Annual Report and Accounts 2024
34
Population growth and
structural undersupply
With population growth continuing to be ahead
of the pace of net additional dwellings, there
continues to be a recognised undersupply of
homes in the UK.
In the summer of 2024, the Government set out
its target for 1.5 million new homes across this
Parliament. This is a significant increase on the
221k net additional dwellings completed in
England in 2023/2024. This target equates
to 300k new homes per year, but it will take
time to scale up. The last time greater than
300k homes per year were built was over
50 years ago. To support its housebuilding aims, the
Government has proposed changes to the NPPF.
National Planning
Policy Framework and
Government policy
A functioning planning system is key for the
UK sector, supporting the availability and visibility
of land for future housebuilding. In 2024, there
was a continued slowdown in planning approvals
as shown in the chart outlining projects approved
for residential planning. The numbers of new
project permissions were at the lowest levels
on record in Q3 2024.
The number of units approved was also at
a low level, with c.270k plots approved in Great
Britain in the 12-month period to September
2024. The low level and slow pace of approvals
has impacted land availability. As a result, land
prices have not adjusted in the same way as in
previous downturns which has implications for
the attractiveness of land opportunities for the
sector. However, we saw a number of attractive
opportunities in the lead up to the 2024 Autumn
Budget, and approved land deals amounting
to c.12k plots in total in 2024 (2023: c.3k).
The NPPF sets out the Government’s planning
policies. The NPPF was first published in 2012
and was a significant change for the sector
resulting in greater land availability and a more
predictable planning system. As the residential
planning approvals chart shows, following its
introduction planning approval units trended up.
However, the NPPF was revised in 2018, 2019,
2021 and 2023, and since those revisions,
housing projects approved have trended down.
Since then, the current Government has placed
growth in the centre of its manifesto and
recognised the economic benefit of
housebuilding. The Government identified
planning bottlenecks as a key barrier to
economic growth not just for the housebuilding
sector but for the wider economy.
6.8%
year on year increase in property
transactions in 2024
Number of units and projects approved for residential planning in Great Britain continue to fall
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0
20,000
40,000
60,000
80,000
100,000
120,000
Number of Units
Q3 2006
Q3 2007
Q3 2008
Q3 2009
Q3 2010
Q3 2011
Q3 2012
Q3 2013
Q3 2014
Q3 2015
Q3 2016
Q3 2017
Q3 2018
Q3 2019
Q3 2020
Q3 2021
Q3 2022
Q3 2023
Q3 2024
N.B. Includes residential projects of all sizes, residential units on non-residential schemes and conversions.
Source: Glenigan, HBF
Number of Projects
Number of Units
Number of Projects
Our market environment continued
35
Strategic report
Directors’ report
Financial statements
Shareholder information
The Government has made rapid progress
with land reform, announcing a consultation
on changes to the NPPF in July 2024 and
putting the revised framework in place in
December 2024.
These updates to the NPPF included a return to
mandatory housing targets while simplifying the
methodology to calculate this to a stock-based
approach. This means that housing targets would
equate to 0.8% of housing stock, and that in
areas where affordability is particularly stretched
there would be an uplift to this.
Using these calculations, the UK will require
planning approvals to be granted for c.370k
homes per year. Local authorities will also be
required to demonstrate a five-year housing land
supply, and if they do not have a Local Plan in
place for this there will be presumption in favour
of sustainable development.
These changes will take some time to be fully
implemented and make a material difference to
the supply backdrop. However, we expect these
reforms to lead to a better functioning planning
system, freeing up more land to support future
growth in housebuilding. In preparation for
these changes, our teams have worked hard
to progress land and prepare applications.
We are also pleased to see the Government
recognise that there is a need to invest in
resources to support the planning process and,
in July 2024, it announced an additional 300 new
planning officers. However, following a sustained
period of declining funding for local planning,
the planning system continues to be stretched.
The proposed Planning and Infrastructure Bill
will look to support delivery of the Government’s
policy objectives and manifesto commitment to
support housing and infrastructure delivery.
Build cost
Build costs are driven by several factors, chief
among these being the availability of labour and
materials. Industry volumes and sector profitability
play a large part in determining the supply and
demand characteristics that impact build cost
inflation or deflation.
In times of strong industry growth, house price
growth and tight labour and materials supply
can drive build cost inflation, while surplus
capacity, in times of downturn, can lead to lower
inflation or deflation. However, the movement
in labour and materials prices can often lag
changing market conditions. We experience
housebuilding specific cost impacts as well as
some in relation to the wider construction
industry. For example, certain trades such as
bricklayers and carpenters are more focused
on new build while other trades such as
groundworkers can have more of a crossover
into commercial or infrastructure projects.
In terms of materials, timber, steel, sand
and cement are also widely employed in
commercial and infrastructure projects.
Therefore, competing demands for labour
and materials (e.g. infrastructure projects
such as HS2, home refurbishment, DIY, etc.)
can also impact our market.
Additionally, as the past few years have
demonstrated underlying inflation in
other input costs such as energy, and global
commodities can have a major bearing on
our cost environment.
Build costs on new tenders were stable over
the course of the year.
Declining industry volumes reduced the
demand for resources and impacted labour costs.
In October 2024, the Government announced
changes to employers’ National Insurance
contributions and increases to the National Living
Wage and National Minimum Wage for 18 to
20 year olds. These changes will have both a
direct impact to Taylor Wimpey, particularly from
employer National Insurance contributions, and
also an indirect impact through the supply chain,
which we continue to monitor.
In coming years, expected increases in industry
output are likely to lead to pressure on labour
and materials.
As previously stated, we have begun to see
modest build cost inflation and we expect this
to be low single digits for the year, depending
on the response of our subcontractors to rising
employer costs. We will continue to work with
our supply chain to identify opportunities for
savings across the business.
Industry regulation
We expect an update from the Government
following the consultation on Future Homes
Standard (FHS) regulation later in the year. We
have been preparing for this regulation which will
see our homes ultimately become all electric and
zero carbon ready and successfully completed
our first trial of zero carbon ready homes in 2023.
We have continued to support a variety of
working groups. The business is well prepared
for the release of FHS, we will need to conduct
further analysis and test our solutions with the
new Home Energy Model (HEM), the system
used to assess the energy performance of
homes, before moving through the transition
to FHS.
370k
national total
annual approvals
required per year
300
new planning
officers announced