Shares in Taylor Wimpey have fallen by over 5% after the housebuilder reported "some underlying pricing pressure".

In the year to 26 April, the firm’s net private sales rate stood at 0.74 per outlet per week, down from 0.77 the previous year. Meanwhile, its order book totalled £2.23bn, representing 7,689 homes, which equates to year-on-year declines of 4.5% and 5.7% respectively.

Taylor Wimpey added that while its customer engagement remains resilient, its overall pricing in the order book is around 1% lower year-on-year, with prices most impacted where affordability is more stretched in the South of England.

In its trading update, the housebuilder said while its high-quality short term landbank had fallen from 78,000 plots to 76,000 plots year-on-year, it has continued to experience good planning momentum and it remains focused on progressing its landbank through its planning system.

In its outlook, Taylor Wimpey said it is “closely monitoring” the macroeconomic backdrop and as a result of rising energy costs, build cost inflation is now expected to be low-to-mid single digit for 2026, with cost pressure and surcharges starting to come through its supply chain.

However, it stated that it remains well positioned to generate value for shareholders and the wider UK economy from its high-quality, well-located landbank and deliver growth and strong shareholder returns over the medium term.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said that while the firm’s momentum was building well in early 2026, the conflict in the Middle East has "brought additional challenges".

He concluded: "Looking to the rest of the year, the picture becomes more uncertain. Rising oil prices are already being felt in their supply chain, and build cost inflation is now expected to be in the low-to-mid single digits for 2026. And with the potential for a more prolonged period of higher interest rates, it’s likely to put more pressure on affordability and weigh on buyer demand.

"Taylor Wimpey’s doing what it can to manage its cash flows prudently, including cutting back on buying new land and managing its works in progress carefully in line with demand. In line with the whole sector, Taylor Wimpey’s valuation has taken a big hit in recent months due to the Middle East conflict, and now looks relatively undemanding on a long-term view. But it could be a while before macroeconomic conditions turn more favourable, so potential investors will need plenty of patience."

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