Cost inflation pushes up expected remediation costs
Taylor Wimpey has been forced to raise provisions for fire safety remediation works after an escalation in costs on recent tenders.
By the end of 2022 Taylor Wimpey had made a £245m total provision for cladding fire safety remediation works.
Announcing annual results this morning the house builder revealed that it had now increased the provision by £88m.
The firm said the increase was due to higher costs based on recent tenders, including project delivery administration costs and funding of the Building Safety Fund pre-tender costs and a small number of new buildings being added.
Taylor Wimpey has now identified 203 buildings that need remediation work.
During the year Taylor Wimpey spent £28m on remediation works and continued to progress work with building owners, management companies and leaseholders.
Across the group pre-tax profit for 2024 was down almost a third to £320m on stable revenue at £3.4bn.
Total completions over the year were down at 10,593 (2023: 10,848) although the firm said it was gearing up for modest growth this year.
Jennie Daly, chief executive, said: “The start of the Spring selling season has been robust, and we have seen good levels of demand for our homes.
“Affordability – while remaining a challenge for many, especially first time buyers – is also moving in the right direction.
“As a result, our total order book is up on last year, putting us in a strong position to grow housing volumes this year.
“We expect to deliver full-year 2025 UK completions in the range of 10,400 to 10,800 excluding JVs and for group performance to be in line with market expectations.
“We welcome the Government’s recent planning reforms which are capable of delivering a real step change in planning outcomes.
“We look forward to seeing increased resources and a focus on the implementation phase to drive these outcomes and deliver much-needed new homes across the UK.”
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