Taylor Wimpey says it has no plans to ramp up home building to its pre-Covid levels until at least 2030, a decision that reflects wider concerns within the sector about costs, red tape and a subdued market.

Its announcement delivers another blow to both Labour’s 1.5 million new homes ambitions and any estate agents that work with newbuilds.

At its recent peak, Taylor Wimpey built some 16,000 homes (2019) but has not come near that figure since, completing 10,600 last year and a similar number this year. Even by the end of the decade, it is still only aiming to reach 14,000 homes a year, 12 per cent down on pre-Covid levels.

Labour’s target requires an average of 300,000 homes per year, leaving the new Secretary of State for Housing, Communities and Local Government, Steve Reed (pictured), heavily reliant on the big developers stepping up to the plate. However, almost all of them are now building fewer houses than before the pandemic, with industry consensus that the 1.5 million target is unachievable.

Challenging economic environment

Taylor Wimpey’s bosses told The Times that the reason for the slowdown is that developers are grappling with dramatic increases in build and regulatory costs that cannot be offset by higher prices. At the same time, stubbornly high interest rates have left mortgage costs elevated and, for the first time in 60 years, there is no support for first-time buyers.

Although Labour has sought to free up the planning system, it remains slow and especially problematic for high-rise blocks, which require building safety regulator sign-off, with the impact most keenly felt in London, where new-build housing has virtually ground to a halt.

Budget concerns

Taylor Wimpey also highlighted the “impact of the delayed UK budget on short-term customer confidence”, with estate agents reporting a drop-off in sales and enquiries amid speculation about property tax reform.

The company’s latest figures show it was selling an average of 0.65 homes per week at each of its 215 developments during August and September, down from 0.7 homes per week in the same period last year.