Wed, 30 Jul 2025

Wed, 30 Jul 2025 Taylor Wimpey's profits wiped out by fixing cladding

The cost of removing cladding was higher than the housebuilder expected after reaching £222m.
Taylor Wimpey has reported a loss in the first half of the year due to increased costs associated with removing cladding from its buildings following the Grenfell fire tragedy. The company has set aside an additional £222m to fix fire safety defects, bringing the total cost to £435m. This has wiped out the company's profits and sent its share price plummeting. The firm also reported a slowdown in sales, with first-time buyers struggling to get on the housing ladder due to rising interest rates and affordability issues. The average sales price for Taylor Wimpey's UK homes dropped to £313,000 from £317,000 in July compared to the same period last year. Taylor Wimpey's chief executive, Jennie Daly, attributed the slowdown in sales to affordability constraints, particularly among first-time buyers, but noted that banks and building societies remain committed to lending for mortgages due to demand. The company also faces challenges related to cladding costs, with an increase of £92m pre-tax loss for the first six months of the year. The cladding remediation work is expected to cost Taylor Wimpey's competitors at least £3.5bn combined, according to analysis from AJ Bell. Analyst Anthony Codling predicted that other housebuilders may also need to set aside more money for fixes due to unexpected defects in their buildings.
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