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The UK housebuilder Taylor Wimpey has said demand is “muted” despite improving affordability, particularly among first-time buyers, echoing a cautious outlook from the estate agents Foxtons and Savills.
Jennie Daly, the chief executive of Taylor Wimpey, said the government’s recent planning changes had resulted in “increased momentum in our recent planning permissions”.
“However, while affordability is slowly improving, demand continues to be muted – particularly among the important first-time buyer category – which will constrain overall sector output,” she added.
Shares in Taylor Wimpey fell 4.7% on Thursday morning, while Foxtons and Savills were also down, 3.9% and 1.6% respectively.
The builder’s completions rose by 6% to 11,229 in 2025, including 2,220 affordable homes. The average selling price for a private home increased by 5.1% to £374,000, from £356,000.
Taylor Wimpey anticipates a lower operating profit margin of 11% for 2025 versus 12.2% in 2024, and expects an even lower margin in 2026, with a smaller order book at the start of the year.
This week, fellow housebuilder Persimmon reported stronger growth of 12% to 11,905 completions, while its average selling price increased by 4% to £278,000. However, it said it was “not expecting any material improvement in market conditions this year” despite positive signs from Boxing Day, and recent reductions in mortgage rates.
On Thursday, Foxtons reported a 2% drop in like-for-like revenues for property sales last year, blaming a slowdown in the market leading up to the 26 November budget, alongside broader economic uncertainty.
The London estate agent’s total revenues for 2025 rose by 5% to £172m, bolstered by lettings revenues and acquisitions such as the agent Cauldwell in Milton Keynes.
Foxtons said its sales division had begun 2026 with a lower under-offer pipeline than in 2025 because of the “significant sales market disruption” around the budget and a very strong comparative period last year, when buyers rushed to take advantage of a tax break before its expiry at the end of March.
Savills said market uncertainty would “remain elevated in 2026” but added that strong pipelines, improving investor and occupier sentiment would support recovery across its core markets.
The company, which now run by Simon Shaw, who replaced Mark Ridley as chief executive on 1 January, said the market recovery had stalled between April and June and into the third quarter of last year, as investors and occupiers digested the impact of US tariffs. The upmarket estate agent and property group added that inthe UK, its largest market, heightened uncertainty around the budget had a similar dampening effect on the prime housing market.
In mainland China, the market declined by more than 20% for a third year, prompting Savills to carry out further restructuring, also in Germany, resulting in a charge of up to £30m for 2025.
The Royal Institution of Chartered Surveyors’ monthly survey showed activity remained weak in December but expectations for sales volumes and prices in 2026 rose.
Its head of market research and analysis, Tarrant Parsons, said: “The UK residential market remains in a prolonged soft patch, with December’s survey recording a sixth consecutive month of negative momentum in buyer enquiries. That said, there are tentative signs of a shift in sentiment.”
Daly said she expected further progress with the Planning and Infrastructure Act 2025 now in place, which should streamline decision-making and speed up planning consents.
Among the changes are new powers for ministers to prevent applications being rejected by local councils and a more limited role for the advisory body Natural England in minor applications. The government has been struggling to achieve its ambitious target to build 1.5m homes in England by the end of the parliament.
