Tuesday 28 April 2026 9:50 am – Taylor Wimpey shares fell as the Iran war pushes up building costs, with the housebuilder warning of rising supply chain expenses. The FTSE 250 firm's stock dipped as much as 4.7% in early trading on Tuesday, reflecting investor concerns over cost inflation.
Impact of Iran War on Supply Chain
Taylor Wimpey reported that its order book now stands at 7,689 homes, six per cent lower than in April last year. The value of these deals also fell five per cent to £2.2m. The company stated it is “closely monitoring the macroeconomic backdrop” and forecasts building cost inflation to reach low-to-mid single digits this year. “Cost pressure and surcharges [are] starting to come through from our supply chain,” the firm said.
Housebuilder Tightly Controls Land Spend
In response to the challenging environment, Taylor Wimpey said it will “tightly control” its spending on land, which it described as already “highly selective”. This move mirrors actions by other major housebuilders. Earlier this month, Barratt Redrow, the UK’s largest housebuilder, announced it would dramatically cut back on land spending, citing caution amid the economic knock-on of the Iran war. Similarly, Berkeley saw its share price plummet at the start of April after it said it would pause land buying completely, amid an “unprecedented increase in cost and regulation”.
Threat to Government Housebuilding Target
These announcements pile further pressure on the government’s plans to build 1.5 million homes by the next general election. Construction firms have said this target is under threat. The Office for Budget Responsibility (OBR) has stated that net additions to the UK’s housing stock will fall to a low point of 220,000 this year, with Labour’s planning reforms yet to “meaningfully materialise” in accelerated housebuilding.
Build-to-Rent Sector Decline
Earlier this month, City AM revealed that the construction of build-to-rent homes, a crucial part of Labour’s housebuilding mix, has fallen for the ninth consecutive quarter. This trend further undermines the government's housing ambitions.
Hargreaves Lansdown analyst Aarin Chekrie commented: “In line with the whole sector, Taylor Wimpey’s valuation has taken a big hit in recent months due to the Middle East conflict. Taylor Wimpey’s doing what it can to manage its cash flows prudently, including cutting back on buying new land and managing its works in progress carefully in line with demand.”
Company Outlook
Despite the uncertainty caused by the Middle East conflict, Taylor Wimpey said it is seeing strong progress on planning and home delivery. Chief executive Jennie Daly stated: “Sales in the year to date have been steady and our teams continue to work extremely hard to support customers through their homebuying journeys against ongoing affordability challenges and an increasingly uncertain macro backdrop.”
Tuesday’s share price dip left Taylor Wimpey’s stock down 32 per cent in the past year, trading at 79p.
