Taylor Wimpey has ceased building new homes in London, attributing the decision to deteriorating development viability in the capital. The housebuilder cited rising costs and diminishing profit margins as key factors.
Jennie Daly, Taylor Wimpey’s chief executive, told The Times’ The Business podcast that the "reward for undertaking what is a very high-risk form of development in London has just evaporated." She highlighted increased costs from regulatory requirements, including new rules for second staircases in high-rise buildings over 18 metres.
The withdrawal follows a reduction in Taylor Wimpey's completion forecast for 2026 to between 10,600 and 10,800 homes, excluding joint ventures. This was a downward revision from a March forecast and 4% below 2025 levels. The company completed 4,986 new homes in the first half of 2026, a decrease from 5,264 in the same period last year.
This move by a major housebuilder could affect housing supply in London, where demand continues to exceed availability. A spokesperson for the Mayor of London acknowledged the challenges facing housebuilders and stated efforts to deliver more homes.