Taylor Wimpey warned on annual profit on Wednesday and cut its forecast for home completions, blaming high mortgage rates and weak demand as buyers wait to see what the Budget holds. The FTSE 250 housebuilder now expects to complete 10,500 homes in the UK this year, excluding joint ventures, down from its previous forecast of 10,600 to 10,800. It also said adjusted operating profit would land at the lower end of the £262 million to £299 million range compiled from analysts' forecasts.

Sales rate slips as buyers hold back

The group's net private sales rate fell to 0.63 homes per outlet per week between 30 June and 9 November, down from 0.71 in the same period last year. Chief executive Jennie Daly said market conditions remained challenging, “impacted by uncertainty ahead of the upcoming Budget and continued affordability pressures”. The Budget is due on 26 November.

Shares under pressure

Taylor Wimpey had already lowered its completions forecast and cut planned shareholder returns earlier this year as it tightened spending in the face of high building costs and soft demand. Its shares closed at 82.40p on Tuesday, down 0.63% on the day, and have fallen sharply over the past year as mortgage rates have stayed high. The update sets a cautious tone for the housebuilding sector ahead of the Budget.