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Like all housebuilders in the UK, the FTSE 100’s Taylor Wimpey (LSE: TW) has seen lean times in recent years. High mortgage rates combined with a cost-of-living crisis worsened the already grim housing market caused by Covid.
However, 1 August saw the Bank of England cut interest rates for the first time in four and a half years, to 5%. The bank’s governor added on 19 September that he is optimistic that “interest rates are going to come down”.
The government’s pledge to build 300,000 new homes yearly for five years is also positive for the housing market’s outlook. If this target is met, it should mark a turning point in the fortunes of the UK’s major housebuilders.
Business outlook
Taylor Wimpey’s H1 2024 results reflected both the bearish reality of the previous six months and some bullishness ahead.
Operating profit dropped 22.6% to £182.3m. This partly…
