In a trading update ahead of its full year results for the year ended 31 December 2023, the housebuilder said it had completed 10,848 homes during 2023, a reduction of 3,306 compared with the year before.

It expected operating profit to be “at the top end” of the guidance previously issued of between £440 million and £470m. 

“We are pleased to have delivered a full-year performance in line with expectations and expect to report full-year operating profit at the top end of our guidance range,” chief executive Jennie Daly said.

“Despite the difficult market conditions throughout the year, we maintained a sharp operational focus and delivered a good performance.

“Looking ahead, it is encouraging to see a reduction in mortgage rates. However, in the short-term the market remains uncertain and the planning backdrop extremely challenging.”

Taylor Wimpey’s UK average selling prices on private completions increased by 5.1% to £370k (2022: £352k) with the overall average selling price increasing by 3.5% to £324k (2022: £313k). The company ended the year with a lower order book valued at £1,772m (31 December 2022: £1,941m), excluding joint ventures, which represents 6,999 homes (31 December 2022: 7,499 homes), of which 2,565 are private (2022: 2,943) and 4,434 are affordable (2022: 4,556).

In the UK, it traded from an average of 238 outlets in 2023 (2022: 232) and ended the year with a total of 237 outlets (31 December 2022: 259).

“Whilst too early in the year to gauge customer behaviour, we have seen good levels of inquiries so far this year and it is encouraging to see recent mortgage rate reductions which will improve affordability,” the company said.

“The planning environment remains challenging and will continue to impact outlet openings. However, as we look ahead, with a strong balance sheet and a highly experienced management team, we remain well positioned to optimise our strong landbank and strategic pipeline and remain confident in the attractive medium and long term fundamentals of the sector.”