Deep dive · Housebuilders · Accounts to December 2025

Inside the accounts · How does Taylor Wimpey make its money?

Taylor Wimpey paid £330m in dividends, more than three times its £100m profit, in a year cladding repairs cost it £226m

Taylor Wimpey builds homes across the UK and a few hundred a year in Spain. In 2025 it completed 11,108 of them, excluding joint ventures, and turned £3.84bn of revenue into £100.4m of profit after setting aside another £225.8m to fix fire safety problems in buildings it put up years ago. Its annual report shows how a housebuilder makes money from land, why most of the people on its sites don't work for it, and how it paid £330.4m in dividends in a year it earned £100.4m. Where a figure says something about how the business works, we explain it.

CompanyTaylor Wimpey plc · 00296805

Accounts readAccounts to December 2025 PDF ↗filed 20 June 2026

ByJames Sproule · 9 November 2026

Reading time9 min read

£3.84bnRevenue, up 13.0%

£100mProfit for the year, down from £220m

£330mDividends paid, 3.3 times the year's profit

£413mSet aside for cladding repairs, up from £232m

In 60 words

The answer

Taylor Wimpey makes its money by buying land, getting planning permission and selling the homes it builds: £3.84bn of revenue in 2025 from 11,108 homes, at £335k on average in the UK. About 79p of every pound went on the land and building costs of what it sold. A £225.8m cladding charge cut profit to £100.4m, and it paid £330.4m in dividends.

The rhythm of the business

From a field to a front door

A housebuilder spends its money years before it gets it back. "There is typically a period of several years between our initial land investment decision and the moment we realise our return" (p. 24). Each stage leaves a mark in the accounts.

Years ahead

Control the land

Most of its strategic pipeline is "controlled via option agreements". It buys when the land reaches a certain planning status, "generally at a discount to market value" (p. 22).

c.133k plots in the strategic pipeline

Months or years

Win planning

Getting to a permission that lets it start on site "can take months or even years" (p. 22). It had c.32k plots waiting for a first planning decision (p. 40).

76,772 plots in the short term landbank

About nine months

Build the home

Once foundations start, the investment in a home "will typically last around nine months until the home is completed" (p. 24).

£2,019.7m of homes and sites being built

Completion day

Hand over the keys

"We only receive funds for private sales when we have completed our sale and handed over the keys to our customer" (p. 24).

£1,864m order book at the year end

Background, not from the accountsA buyer of a new home in England usually pays a reservation fee, then a deposit when contracts are exchanged, and the rest, normally with a mortgage, on completion. The accounts follow that pattern: revenue is recognised "when title of the property passes to the customer on legal completion" (p. 179), and deposits sit on the balance sheet as a liability until then. Taylor Wimpey held £66.4m of customer deposits at the year end (p. 197).

The income statement

The business on one page

£3,844.6m of revenue became £100.4m of profit (p. 173). Most of the fall from 2024's £219.6m came from one-off charges for cladding and a competition investigation. Before those, profit after tax was £282.6m, against £297.6m (p. 173).

From £658m of gross profit to £100m of profit, 2025Each bar is one step. Without the one-off items, pre-tax profit would have been £394.2m.

Totals
Running costs, interest and tax
One-off charges
Other income

Gross profitafter a £20m repair charge at a London site£658m

Administrative expensespay reviews and employer's National Insurance−£247m

Part-exchange and other income, netmostly selling homes taken in part exchange£8m

Cladding fire safetyone-off: the provision raised−£226m

CMA commitmentsone-off: £15.8m payment plus fees−£18m

Interest, netlargest item: interest on land bought on deferred terms−£30m

Joint ventures£2m

Tax29% UK rate, including a 4% developer tax−£46m

Profit for the year£219.6m in 2024£100m

Consolidated income statement, p173; notes 6 and 8, pp187–189; note 9, p190.

79p

of every £1 of revenue was the cost of the land, materials and building work in the homes and plots it sold: £3,030.4m (p. 188).

17.1%

gross margin, down from 19.1%. The report points to low single-digit build cost inflation, softer prices in the order book it started the year with, and an unexpected £20.0m charge for "historical defective workmanship by a principal contractor" at a London development (p. 77).

Where each £100 of Taylor Wimpey's revenue went, 2025£78.82 of the £82.87 cost of sales is the land and building cost of the homes and plots sold (note 6). Running costs are administrative expenses, £6.43.

£82.87

Cost of sales: land, materials, building work and site costs · £82.87
Running costs, interest and tax, less other income · £8.17
Cladding repairs and the CMA commitments · £6.34
Profit for the year · £2.61

Income statement p173; notes 6 and 8, pp187–189. Our split.

What this means for Taylor WimpeyA housebuilder fixes most of its margin when it buys the land and agrees the build costs, often years before the sale. If prices then stall while costs keep rising, the margin shrinks. The report puts it plainly: "If cost increases are not met with rising house prices, as has happened in recent years, there is an inevitable impact on margin" (p. 25). Before one-off items, the operating margin was 10.9%, against 12.2% in 2024 and a medium term target of 16% to 18% (pp. 77 and 14).

Revenue

Where the money comes from

Private homes are most of it. Private sales brought in £3,329.3m, 87% of revenue (p. 186). UK private homes sold for £374k on average, up 5.1%, "due mainly to regional mix" (p. 77).

Affordable homes are a fifth of the homes and a tenth of the money. 2,220 UK completions, 21%, were affordable housing (p. 39), at an average of £187k (p. 77). "Partnership housing" brought in £414.1m (p. 186), which is about what 2,220 homes at that price come to: our arithmetic.

Land sales nearly trebled. "Land and other" rose from £36.4m to £101.2m (p. 186). The report says it sold land routinely and reinvested the proceeds "into smaller, higher returning sites" (p. 79).

Where £3.84bn of revenue came fromSpain, all private sales, was £193m of the total.

2024
2025

Private homesUK and Spain; UK private average price £374k£3,329m

Partnership housingaffordable homes; UK average price £187k£414m

Land and otherland sales and commercial property£101m

Note 4, revenue, and note 5, segments, p186; Group financial review, p77.

£51.7m

Spain: 5% of revenue, 12% of operating profit

494 homes, mostly "second homes to European and other international customers", at €455k on average. Its operating margin before one-off items was 26.8%, against 10.1% in the UK (pp. 77 and 78).

0.75

Homes sold a week per site

Net private sales per outlet per week, the same as in 2024, from an average of 208 outlets. 15% of sales were cancelled, also unchanged (pp. 13 and 39).

6.4%

New homes' share of sales

Private new build completions as a share of UK property transactions in 2025, against 7.8% on average from 2020 to 2024, as more second-hand homes came up for sale (p. 29).

What this means for Taylor WimpeyA new home competes with every other house for sale nearby. "Because the new homes sector remains a small segment of the overall housing market, pricing is dictated by the second-hand market" (p. 29). When buyers hesitate, a housebuilder offers upgrades and financial incentives, which "directly impact our profit margin". Taylor Wimpey states its selling prices "net of incentives" (p. 25), so the £335k average is after them.

Not disclosed. The report doesn't say how much it spent on incentives, or how many homes it sold in bulk deals to investors or at what price, beyond saying that pricing on bulk deals in the second half "was softer" (p. 39). It doesn't split UK revenue by region.

The landbank

A business built on land

What Taylor Wimpey owns and owes, 31 December 2025Selected lines. Net assets were £4,186.8m, so land alone is three quarters of the company's book value.

Owns
Owes

Land76,772 plots in the short term landbank£3,200m

Homes and sites being builtwork in progress£2,020m

Cash£647.4m a year earlier£430m

Part-exchange homes and other£51m

Land still to be paid forland creditors£522m

Provisions£412.6m of it for cladding£492m

Balance sheet p175; notes 15, 18 and 22, pp196–208.

Land is the biggest asset. £3,200.4m of land and £2,019.7m of homes and sites under construction made up almost all of the £5,271.4m of inventories (p. 196). The short term landbank, land with some form of planning, held 76,772 plots (p. 79).

Land is a small part of the price. In its short term owned landbank, the cost of land was 12.7% of the average selling price (p. 39). 39% of 2025's completions came from strategic land, which had no residential planning permission when it first took an interest in it (pp. 40 and 44).

Some of it is still to be paid for. £522.5m was owed to land sellers, £296.4m of it due within a year (p. 79). The discount on those deferred payments was the biggest interest cost, £26.1m (p. 189).

What this means for Taylor WimpeyAt current completions the landbank is 7.2 years of supply, which the report calls "longer than we would like". The target is four and a half to five years (p. 26). "We have a great landbank, but it is not efficient at current volumes," the strategic overview says (p. 16). The plan is to sell more homes from the land it already has, on more, smaller sites, "without the need for net land investment" (p. 14). Less money tied up in land, for the same profit, means a higher return on the capital.

£359.4m

Paid to local communities

Through planning obligations in 2025, funding affordable housing, green space, community facilities, transport and more (pp. 19 and 77). That is more than three times the year's profit.

Background, not from the accountsIn England, councils grant planning permission on condition that the developer builds or pays for things the new homes will need, through section 106 agreements and the Community Infrastructure Levy. Requiring a share of homes to be affordable is the most common of these. For a housebuilder, these obligations are part of what the land costs to develop.

People and building costs

Who builds the homes

Most of the work is subcontracted. "The vast amount of our day to day labour is provided by subcontractors": about 9,600 operatives on its sites on average (p. 25), against 4,393 people it employed in the UK (p. 41).

Staff costs rose 4.6%, to £335.4m, for an average of 4,496 employees including Spain. Employer's National Insurance rose from £29.6m to £35.2m (p. 189). Pay reviews and the higher National Insurance rate pushed administrative costs up to £247.4m (p. 78).

Build costs rose about 1%. Build cost inflation was low single digits, but supply-chain savings and its new range of house types brought it to "c.1%" net (p. 39). The company runs what it calls "the only logistics business in the sector" (p. 24), which sends "build packs" to sites "just-in-time", and its own timber frame factory (pp. 23 and 25).

Staff costs rose to £335m; National Insurance rose 19%For an average of 4,496 employees in the UK and Spain.

2024
2025

Wages and salaries£283.2m

Employer's National Insurancesocial security costs£35.2m

Pensions£16.4m

Redundancy£0.6m

Note 7, staff costs, p189.

Who works on Taylor Wimpey's UK homesAverages in 2025. Each square is 1%.

Employees: 4,393
Subcontracted operatives: c.9,600

Performance and operational review, p41; note 7, p189.

What this means for Taylor WimpeySites open and close all the time, so a housebuilder wants costs that rise and fall with the work. "Given that we are regularly opening and closing sites, it is important to have a flexible cost base" (p. 25). The cost of most of the people laying bricks and fitting roofs therefore sits inside the cost of the homes, not in the £335.4m of staff costs. Taylor Wimpey manages each site with its own site managers, sales teams, and health and safety, production and technical managers (p. 27).

Standard house types

"Efficient core standard house types" under one brand (p. 5). Familiar designs and processes help subcontractors "build right first time" (p. 25).

4.96

Build quality, out of 6

Its average score in the NHBC's Construction Quality Review, against 4.93 in 2024 and an industry benchmark group average of 4.75 (p. 40).

£20.0m

One London repair

An unexpected charge in cost of sales for "historical defective workmanship by a principal contractor" at one of its London developments (p. 77).

The finding

Old buildings, a new bill: £225.8m for cladding

The cladding bill: £233m to £413m in a yearThe cladding fire safety provision, set up in 2018. No recoveries from others are counted in it.

Provision
Added
Spent

Provision, December 2024£232m

Added in 2025£222.2m of it in the first half£226m

Discount unwoundcharged as interest£4m

Spent on remediation£28.5m in 2024−£49m

Provision, December 2025about 35% to be spent in 2026£413m

Note 22, provisions, p208; note 6, p188; performance review, p41.

The provision rose by £225.8m. Intrusive investigations and fire risk appraisals of external walls on older buildings "led to a reassessment" of the risk. £222.2m was added in the first half and £3.6m since (p. 41).

Defects nobody could see. About two thirds of the increase is to fix "historical building defects, relating to cavity barriers behind brickwork and render, which were not visible in earlier non-intrusive assessments" (p. 41). Fire engineers' reading of the assessment standard has also become "more cautious", so some buildings previously judged acceptable now need work (p. 188).

The money goes out over years. It spent £49.4m on cladding remediation in 2025 and expects to spend about 35% of what is left in 2026 (p. 208).

4.1×

the year's profit: the £412.6m cladding provision at 31 December 2025, against £100.4m of profit (pp. 208 and 173, our arithmetic).

£18.0m

for commitments to the Competition and Markets Authority, which closed its investigation into seven housebuilders on 30 October 2025 without an infringement finding. Taylor Wimpey's share of a £100m contribution to the Government's Affordable Homes Programme was £15.8m; the rest was legal and professional fees (p. 43).

What this means for Taylor WimpeyA home is sold once, but the builder's responsibility for it lasts much longer. The report says "leaseholders should not bear the cost of fire safety remediation" (p. 40), so the cost falls on the builder. The provision includes no money recovered from others, though the company says it is pursuing "claims against those responsible for poor design, workmanship, or material failures" (p. 41). In the accounts the charge is a one-off item, but the cash goes out over several years.

Background, not from the accountsAfter the Grenfell Tower fire in 2017, the Government asked large housebuilders to sign a pledge, later turned into legally binding remediation contracts, to fix life-critical fire safety defects in residential buildings over 11 metres tall that they built or refurbished in England over the previous 30 years. Taylor Wimpey's report refers to the Building Safety Pledge for Developers (p. 208) and the Developer Remediation Contracts in England and Wales (p. 72).

Cash and shareholders

Paying out more than it earned

Dividends took £330m; operations brought in £268m2025. £175m borrowed during the year was repaid by the year end, so it nets to nil.

Totals
Cash out
Paid to shareholders
Cash in

Cash, December 2024£647m

Cash from building and selling homesafter paying down land creditors£268m

Cladding and CMA payments−£68m

Tax−£50m

Interest, net−£4m

Joint ventures, equipment and software−£22m

Leases−£12m

Dividends9.33p a share−£330m

Share schemes and currency£2m

Cash, December 2025£430m

Consolidated cash flow statement, p177.

Cash fell by £217.8m, from £647.4m to £429.6m (p. 177). Building and selling homes brought in £268.0m, less than 2024's £311.7m, because it paid down what it owed land sellers and more money was owed to it from land sales and bulk deals (p. 80).

Dividends were the biggest outflow, £330.4m, or 9.33p a share (pp. 177 and 232). Net cash, after borrowings, fell from £564.8m to £342.6m (p. 80).

The dividend is set by net assets, not profit. The policy is to return "7.5% of net assets per annum, or at least £250 million" (p. 25). Ordinary dividends for 2025, including the proposed final, come to 7.62p a share, down from 9.46p, and it announced a £52m share buyback (p. 81).

What this means for Taylor WimpeyPaying out 3.3 times the year's profit is possible for two reasons the accounts show. Most of the year's one-off charge is a provision, money to be spent over coming years rather than cash already gone. And a housebuilder's money is tied up in land and half-built homes, which turn back into cash as homes are sold. Net assets fell from £4,405.2m to £4,186.8m (p. 79). From 2026, the policy keeps the 7.5% but pays at least 5.0% of net assets as an ordinary dividend, with the rest by dividend or share buyback (p. 25).

Five years

Through the housing cycle

Homes completed: down almost a quarter since 2021UK completions including joint ventures.

UK homes completed, including joint ventures

Five year review, p232.

Profit before one-off items: about half its 2021 levelThe company's own measure: before interest, tax and exceptional items.

Adjusted operating profit

Five year review, p232.

Fewer homes, at higher prices. UK completions, including joint ventures, fell from 14,087 in 2021 to 10,735 in 2025, while the UK average selling price rose from £300k to £335k. Revenue peaked at £4,419.9m in 2022 (p. 232).

The targets. In October 2025 it set medium term targets, meaning three to five years, of 14,000 UK completions a year, an operating margin of 16% to 18% before one-off items, and a return on net operating assets above 20% (p. 3).

2026 guidance. 10,600 to 11,000 UK completions, and adjusted operating profit of around £400m, with a lower margin than in 2025 (p. 17).

What this means for Taylor WimpeyHousebuilders sell more when mortgages are cheap and easy to get. The Bank of England cut its base rate from 4.75% to 3.75% during 2025, but affordability "remained challenging, particularly for first time buyers", with "pricing pressure which was more acute in the South" (pp. 30 and 13). The growth plan relies on opening more sales outlets rather than selling faster from each: it assumes sales rates "broadly in line" with 2024 and 2025 (p. 16).

In the directors' words

The risks they name

A decline in the economic environment, driven by sustained growth in interest rates, increased cost of living, low wage inflation or increasing levels of unemployment, could result in tightened mortgage availability and challenge mortgage affordability for our customers, resulting in a direct impact on our volume targets.
Principal risks, p. 72

Changes to the planning system or planning delays could result in missed opportunities to optimise our landbank, affecting profitability and delivery of new homes.
Principal risks, p. 72

If cost increases are not met with rising house prices, as has happened in recent years, there is an inevitable impact on margin.
Business model, p. 25

In plain termsA housebuilder depends on three things it doesn't control: whether buyers can get a mortgage, whether councils grant planning, and what materials and labour cost. Taylor Wimpey's answers are a long landbank, a flexible workforce of subcontractors and a strong balance sheet: net cash of £342.6m and an undrawn £600m revolving credit facility at the year end (p. 80).

Two years side by side

Year on year

2025 against 2024Percentage change, one scale. Pre-tax profit fell because of £247.7m of one-off charges, mostly for cladding.

Rose
Fell

Revenue£3,401m → £3,845m13%

Group completions, excluding joint ventures10,476 → 11,1086%

UK average selling price£319k → £335k5%

Gross profit£649m → £658m1%

Adjusted operating profit£416m → £421m1%

Pre-tax profit£320m → £146m−54%

Staff costs£321m → £335m5%

Dividends paid£339m → £330m−3%

Cash at year end£647m → £430m−34%

Income statement p173, notes 4–7 pp186–189, cash flow p177, Group financial review p77.

Show the figures as a table

Measure	2025	2024
Revenue	£3,844.6m	£3,401.2m
of which private sales	£3,329.3m	£2,960.7m
of which partnership housing	£414.1m	£404.1m
of which land and other	£101.2m	£36.4m
Completions, excluding joint ventures	11,108	10,476
UK average selling price	£335k	£319k
Gross profit	£658.4m	£648.7m
Gross margin	17.1%	19.1%
Adjusted operating profit	£420.6m	£416.2m
Exceptional items, before tax	£247.7m	£98.2m
Pre-tax profit	£146.5m	£320.3m
Profit for the year	£100.4m	£219.6m
Staff costs	£335.4m	£320.7m
Average employees	4,496	4,458
Dividends paid	£330.4m	£339.4m
Ordinary dividends declared per share	7.62p	9.46p
Cladding fire safety provision	£412.6m	£232.3m
Cash at year end	£429.6m	£647.4m
Net assets	£4,186.8m	£4,405.2m

Exceptional items in 2025: £225.8m for cladding fire safety, £18.0m for the CMA commitments and £3.9m of interest on the cladding provision. In 2024: £68.9m for cladding, a £13.6m loss on selling a joint venture and £15.7m of joint venture results (p. 187).

Quick answers

Questions about Taylor Wimpey

How does Taylor Wimpey make its money?

How much profit did Taylor Wimpey make in 2025?

£146.5m before tax and £100.4m after tax, on revenue of £3,844.6m, down from £320.3m and £219.6m in 2024. One-off items cost £247.7m before tax, mostly a £225.8m increase in its cladding fire safety provision and £18.0m for commitments to the Competition and Markets Authority. Before them, pre-tax profit was £394.2m.

How much does Taylor Wimpey pay in dividends?

It paid £330.4m in 2025, 9.33p a share, more than three times its £100.4m profit. Its policy is to return 7.5% of net assets a year, or at least £250m. Ordinary dividends for 2025, including the proposed final, come to 7.62p a share, down from 9.46p, and it announced a £52m share buyback.

What is Taylor Wimpey's cladding provision?

£412.6m at 31 December 2025, up from £232.3m. It added £225.8m in 2025 after intrusive fire risk assessments found more work was needed, including cavity barrier defects behind brickwork and render, and spent £49.4m. It expects to spend about 35% of what is left in 2026. No recoveries from others are counted in it.

How many homes does Taylor Wimpey build?

It completed 11,108 homes in 2025 excluding joint ventures: 10,614 in the UK, 21% of them affordable, and 494 in Spain. Including joint ventures, UK completions were 10,735. The UK average selling price was £335k. It expects 10,600 to 11,000 UK completions in 2026.

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