Taylor Wimpey reports 'muted' home demand despite rate cuts

The housebuilder Taylor Wimpey has said demand is “muted” despite improving affordability, particularly among first-time buyers, echoing a cautious outlook from estate agents.

- Julia Kollewe

Jennie Daly, the chief executive of Taylor Wimpey, said the government’s recent planning changes had resulted in “increased momentum in our recent planning permissions”.

“However, while affordability is slowly improving, demand continues to be muted - particularly among the important first-time buyer category - which will constrain overall sector output,” she added.

Shares in Taylor Wimpey fell by 4.7% in early trading before easing back to close about 1% down, while Foxtons fell 6% over the day. Savills closed nearly 9% higher.