Russ Mould, investment director at AJ Bell, said: “Taylor Wimpey looks like it could do with a boost from falling mortgage rates in 2026 after serving up a downbeat update.
“The housebuilder is seeing muted demand among first-time buyers which has an inevitable impact on the broader market, and trading in general is struggling to shake off the post- and pre-Budget blues.
“Margins remain under pressure and the boost from land sales in 2025 is a double-edged sword as it is not expected to repeat this year.
“Profitability across the housebuilding sector is still a long way from the most recent peak in 2021.
“Taylor Wimpey did express confidence in its medium-term prospects, but the danger is the market will take little notice given the bleak near-term outlook.”
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