Key facts
- UK housebuilders are facing the most difficult conditions since the 2008 financial crisis, according to Rightmove CEO Johan Svanstrom.
- New home developments are at historically low levels, with a six percent drop compared to a year ago.
- Taylor Wimpey has slashed its shareholder dividend and warned of a prolonged market downturn.
- Taylor Wimpey reduced its home completion target for the year.
- The company called for government intervention to support demand and unlock new housing delivery.
UK housebuilders are facing their most challenging environment since the 2008 financial crisis, with new developments significantly reduced, according to Rightmove CEO Johan Svanstrom. The property portal noted a six percent decrease in new-builds compared to the previous year, leading to historically low levels of new developments coming to market.
Adding to the gloom, housebuilder Taylor Wimpey announced it is slashing its dividend and warned of a prolonged market downturn. The company cited continuing market uncertainty, rising building costs, increased mortgage rates, and falling consumer confidence as key challenges. Taylor Wimpey revised down its home completion target and reported a decrease in its private sales rate and net order book.
Taylor Wimpey urged the government to implement targeted demand support and viability measures to boost the sector. Russ Mould of AJ Bell described the update as a reminder that the sector is on shaky foundations. Separately, builders' merchant Lord's Group also warned of rising employment costs and declining consumer confidence impacting the construction industry.