Well-positioned
for medium term growth
Taylor Wimpey plc
Annual Report and Accounts 2025
Strategic report
Investment case
3
Business overview
7
Chair’s statement
11
Chief Executive’s
strategic overview
13
Adding value
19
Our business model
21
Our market environment
29
Market trends,
opportunities and risks
36
Performance and
operational review
38
Key performance indicators
44
Our sustainability framework
46
Our commitment to
the environment
47
Reporting our progress
50
Task Force on Climate-related
Financial Disclosures
51
Non-financial and sustainability
information statement
66
Risk management
68
Principal Risks and uncertainties
71
Group financial review
77
Viability statement
82
Stakeholder engagement and
Section 172 (1) statement
84
Directors’ report
Governance at a glance
91
Board of Directors
92
Group Management Team
95
Chair’s introduction to
the Directors’ report
96
Our governance structure
97
Division of responsibilities
98
Board leadership
99
UK Corporate Governance
Code compliance statement
100
Strategic focus in 2025
102
Board in action
105
Engaging with our shareholders
106
Monitoring our culture
108
Nomination and Governance
Committee report
111
Audit Committee report
120
Remuneration Committee report
129
Statutory, regulatory
and other information
159
Financial statements
Independent auditors’ report
164
Consolidated income statement
173
Consolidated statement of
comprehensive income
174
Consolidated balance sheet
175
Consolidated statement of
changes in equity
176
Consolidated cash flow statement
177
Notes to the consolidated
financial statements
178
Company balance sheet
216
Company statement of
changes in equity
217
Notes to the Company
financial statements
218
Particulars of subsidiaries,
associates and joint ventures
223
Five year review
232
Shareholder information
Notice of Annual General Meeting
233
Shareholder facilities
248
Contents
Chair’s statement
Robert Noel
Chair
p
11
Group
financial review
Chris Carney
Group Finance Director
p
77
Chief Executive’s
strategic overview
Jennie Daly
Chief Executive
p
13
Our 2025 reporting suite
Annual Report
Our 2025 Annual Report
includes key sustainability,
financial disclosures.
Sustainability Summary
More on our materiality,
sustainability activities,
and policies
Taylor Wimpey plc
Annual Report and Accounts 2025
2
14k
UK completions
(excluding joint ventures)
(2025: 10.6k)
16-18%
Group adjusted operating
profit margin*
(2025: 10.9%)
4.5-5
UK landbank years
(2025: c.7.2)
>20%
Group return on net
operating assets*
(2025: 11.0%)
In 2025, we also rolled out our updated
environmental targets and sustainability
framework to our business
Read more on
pages 46 to 49
3
Strategic report
Directors’ report
Financial statements
Shareholder information
With a strong balance sheet and landbank
and an experienced management team,
Taylor Wimpey is a resilient business and is
well-positioned to deliver growth, unlock value
and maximise returns over the medium term.
Well-positioned for
medium term growth
Our investment case
This report showcases our strong proposition for shareholders.
Our medium term targets
In October 2025 we set out new medium targets (which we define
as three to five years, dependent on market conditions)
Read more on
page 14
Delivering
growth
Read more on
page 4
Unlocking
value
Read more on
page 5
Maximising
returns
Read more on
page 6
Well-positioned for medium term growth continued
Delivering
growth
With the most positive planning outlook
since 2012, we are driving future outlet
growth from our strong landbank and
strategic pipeline, through a proactive
and assertive planning strategy, and without
the need for net land investment.
Plots in planning
for first principle
determination
c.32k
(2024: c.27k)
Targeted applications designed
to unlock land pipeline in areas
of opportunity
Total planning
permissions granted
16.5k
(2024: 15.1k)
Year on year increase
in outlet openings
29%
(2024: 17%)
We will grow the number of
average outlets year on year
76.8k
total plots
(2024: 78.6k)
Our short term owned and controlled landbank
62.4k
plots owned
(2024: 65.5k)
14.4k
plots controlled
(2024: 13.1k)
Taylor Wimpey plc
Annual Report and Accounts 2025
4
Unlocking
value
Operational levers in place to drive
efficiency, with an experienced
management team in place to
execute plan.
Well-positioned for medium term growth continued
Policy
engagement
and
collaboration
Technology
and design
innovation
Build efficiency
Supply chain
readiness
Construction
Quality Review
4.96
(2024: 4.93)
average score (out of 6)
leading the volume homebuilders in quality
33
efficient core standard house types
serving all demographics and under
one widely recognised brand:
Proactive response to
evolving regulations
5
Strategic report
Directors’ report
Financial statements
Shareholder information
Maximising
returns
Enhancing margins, highly focused on
optimising our capital efficiency and
generating substantial cash to reinvest
in the business, with a reliable distribution
to shareholders.
Well-positioned for medium term growth continued
Delivering improved margins
Through volume growth, landbank evolution
and disciplined cost management
16-18%
Medium term target
Group adjusted operating profit margin
(2025: 10.9%)
Improved capital
efficiency driving return
on net operating assets
>20%
Medium term target
Group return on net operating assets
(2025: 11.0%)
Commitment to significant
shareholder distributions
through the cycle
7.5%
of net assets paid annually
1
1. In March 2026, our Distribution Policy was updated to
provide a flexible approach while maintaining overall
distribution at 7.5% of net assets per annum.
* Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 81 for definitions.
Taylor Wimpey plc
Annual Report and Accounts 2025
6
Business overview
Map key
Head office
Regional offices
Spain
3
regional
businesses
North West and Yorkshire
Scotland, North East and
North Yorkshire
4
regional
businesses
5
regional
businesses
5
regional
businesses
5
regional
businesses
1
regional
business
Spain
Central and South West
Midlands and Wales
London and South East
to local communities in the UK.
Where we operate
a local level from 22 regional businesses
7
Strategic report
Directors’ report
Financial statements
Shareholder information
For more information on our Spanish business, please see
page 78
Business overview continued
Taylor Wimpey plc
Annual Report and Accounts 2025
8
We have developed our sustainability framework to guide our approach across five key priority areas:
To build great homes
and create thriving communities
Read more about our sustainability
framework on
page 46
Read more about our strategic
cornerstones on
page 15
Land
Operational excellence
Sustainability
Capital allocation
Homes
and places
Our people
Supply chain
partners
Environmental
impact
Responsible
and resilient
business
built on a strong culture of doing the right thing
Take
responsibility
Be
proud
Better
tomorrow
Respectful
and fair
Our purpose
Our strategic cornerstones
Our sustainability framework
Our values
* Alternative Performance Measures
The Group uses Alternative Performance Measures (APMs), such as those indicated above with a footnote symbol,
as important financial performance indicators to assess underlying performance of the Group. The Group’s two main
financial targets are adjusted operating profit margin and return on net operating assets. In preparation for the adoption
of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027, the Group has renamed the measures of
operating profit and operating profit margin to adjusted operating profit and adjusted operating profit margin respectively.
The calculation methodologies for these measures are unchanged. Definitions and reconciliations of our APMs to the
equivalent statutory measures are included in Note 32 of the financial statements. Please see page 81 for definitions.
Group
financial
highlights
Business overview continued
11,229
202
4
2025
2023
10,848
10,593
11,229
Group completions including joint ventures
£3,844.6m
202
4
2025
2023
£3,514.5m
£3,401.2m
£3,844.6m
Revenue
£420.6m
202
4
2025
2023
£470.2m
£416.2m
£420.6m
Adjusted operating profit*
£342.6m
202
4
2025
2023
£677.9m
£564.8m
£342.6m
Year end net cash*
£146.5m
202
4
2025
2023
£473.8m
£320.3m
£146.5m
Profit before tax
9.33p
202
4
2025
2023
9.57p
9.59p
9.33p
Total dividend per share paid in the year
10.9%
202
4
2025
2023
13.4%
12.2%
10.9%
Adjusted operating profit margin*
11.0%
202
4
2025
2023
12.6%
10.9%
11.0%
Return on net operating assets*
117.6p
202
4
2025
2023
127.1p
123.8p
117.6p
Tangible net assets per share*
9
Strategic report
Directors’ report
Financial statements
Shareholder information
5-star
Customer satisfaction rating
(2024: 5-star)
4.96
Construction Quality Review
average score (out of 6)
(2024: 4.93)
£374k
Average selling price on
private completions
(2024: £356k)
200
Annual Injury Incidence Rate
(per 100,000 employees and contractors)
(2024: 212)
71
New outlets opened in the year
(2024: 55)
c.77k
Plots in short term landbank
(2024: c.79k)
60%
Reduction in operational tonnes
CO
2
e emissions (absolute) since 2019
(2024: 47%)
92%
Employee engagement score
(2024: 93%)
£359m
Contributions to local communities,
via planning obligations
(2024: £345m)
Business overview continued
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (PwC).
For further information please see page 50.
UK
highlights
A
Taylor Wimpey plc
Annual Report and Accounts 2025
10
Chair’s statement
Dear shareholder,
2025 was a mixed year for the sector. The start
of the year saw rapid progress on planning reform,
and we expect this will allow us to increase
our build rate over the next stage of the cycle.
Interest rates reduced since the previous year,
which, together with wage growth, has allowed
affordability to begin to repair. On the other hand,
we know affording a home remains a challenge
for many potential customers, especially first
time buyers.
Following a promising start to the year, consumer
sentiment began to weigh on our market limiting
our sales progress, particularly in the second half
of 2025.
Despite this, homebuilding remains a highly
attractive market. In October 2025, our executive
management laid out our vision for the next phase
of the cycle, setting our targets for the next three
to five years.
Our plan builds on the elements within our control
and will enable us to deliver growth in a supportive
market. Pages 38 to 45 provide an overview of
our 2025 performance, with our strategy and
medium term targets outlined in the Chief
Executive’s review on pages 13 to 18 and the
Board’s strategic focus during the year set
out on pages 102 to 104.
Managing responsibly
through the cycle
As we focus on controlling the controllables,
good governance remains key. Our ethos as
a Board, to optimise current conditions while
managing the business in the best long term
interest of our stakeholders, is unchanged.
To put it another way, we manage the business
to maximise potential at each stage of the cycle.
The health and safety of our customers and
employees is always our number one priority
in all markets. Health and safety is discussed in
every Board, Group Management Team (GMT)
and local regional management team meeting
across the country.
We are also focused on the fire safety remediation
of legacy buildings to bring them into compliance
with revised fire safety standards. We increased
the pace of activity in 2025. As the fire safety
guidelines have evolved, new intrusive
investigations uncovered additional work on
known buildings. Therefore, we increased our
provision in the year by c.£226 million, reflecting
updated safety guidelines and our commitment
to resolve these issues as quickly as possible.
11
Strategic report
Directors’ report
Financial statements
Shareholder information
Controlling
the controllables
“We are focused on optimising the controllable factors
to drive performance and best position the business
for the significant opportunities ahead.”
Robert Noel
Chair
Chair’s statement continued
Distribution Policy
We recognise the importance of cash returns
to shareholders and have demonstrated our
commitment to making significant distributions,
returning over £2.8 billion since the introduction
of our Dividend Policy in 2018.
At our full year results on 5 March, we updated
our Distribution Policy, whilst maintaining our
returns at 7.5% of net assets per annum, or
at least £250 million, in two equal instalments.
It is the Board’s intention to return a minimum of
5.0% of net assets as an annual ordinary dividend,
with a further 2.5% of net assets returned annually
either by way of ordinary cash dividend or a share
buyback as considered appropriate by the Board.
The Board believes that the greater flexibility
provided by this approach is in the best interests
of all shareholders.
In line with this updated Distribution Policy,
and subject to shareholder approval, the Board
announced a 2025 final dividend of 2.95 pence
per share (totalling c.£105 million). We also
announced a share buyback of £52 million
intended to be completed by the end of June
2026. This results in a total 2025 distribution,
including the interim dividend of £165 million,
of c.£322 million.
Going forward, in line with our established capital
allocation framework, we remain committed to
returning excess cash to shareholders as the
cycle evolves. The method of return of any
excess cash (share buyback or special dividend)
will be considered at the appropriate time.
Stakeholder engagement
I am pleased that the 2025 employee survey
again showed excellent engagement with a score
of 92% (2024: 93%) and a response rate of 72%
(2024: 73%). This is testament to the continued
commitment of our teams.
In 2025, the Board continued to visit our regional
businesses and development sites and were
fortunate to meet many of our highly dedicated
employees who are happy to go the extra mile
for our customers and our Company.
We continue to promote the employee voice
through our local and national employee forums.
Through Mark Castle, in his role as Employee
Champion, we receive an employee engagement
update at each Board meeting, during which
Directors also share an overview of engagement
activities undertaken since the previous meeting.
Regular engagement with our shareholders
remains highly important to the Board. During
the year, the Executive Directors and I actively
engaged with institutional shareholders, including
the executive management’s trip to see our
North American investors.
In addition, Jitesh Gadhia undertook an extensive
shareholder consultation process with our
largest shareholders as part of the Directors’
Remuneration Policy review. These constructive
discussions resulted in valuable input from our
shareholders that helped shape our new Policy.
We look forward to meeting shareholders at the
Annual General Meeting (AGM), which will again
take place at the Crowne Plaza Hotel, Gerrards
Cross on Tuesday 28 April 2026. As usual,
shareholders will also be able to submit their
vote in advance by proxy and email questions
in advance of the meeting.
Closure of Competition and
Markets Authority investigation
We welcomed the announcement from the UK
Competition and Markets Authority (CMA) on
30 October 2025 that it closed its investigation
into the conduct of seven homebuilders including
Taylor Wimpey, accepting voluntary commitments
from all parties involved.
The voluntary commitments which included
a contribution to the Government’s Affordable
Homes Programme (of which Taylor Wimpey’s
share was £15.8 million), do not constitute any
admission of wrongdoing and the resolution
allows us to focus on delivering much needed
new homes for the UK.
Delivering growth, unlocking
value and maximising returns
In October we set out our investment case,
illustrated in the opening pages of this report,
to remind the market of why Taylor Wimpey
is a compelling opportunity. Our teams have
worked hard to best position us for the
opportunities ahead.
We are pleased to have set out ambitious but
realistic medium term targets that build on the
elements within our control and on driving
stakeholder value from our assets.
This is a shared focus across the business and,
while there will always be challenges facing our
industry, I am confident that we have the land,
the teams and the culture in place to deliver
growth, unlock value and maximise returns
for our stakeholders.
Robert Noel
Chair
We undertook an extensive
shareholder consultation
process with our largest
shareholders as part of the
Directors’ Remuneration
Policy review.”
Robert Noel
Chair
Taylor Wimpey plc
Annual Report and Accounts 2025
12
Chief Executive’s strategic overview
Dear shareholder,
2025 was a year of focused delivery for
Taylor Wimpey in what became an increasingly
challenging market. While mortgage availability
continued to improve, affordability remained
challenging, particularly for first time buyers,
and we saw pricing pressure which was more
acute in the South. The delayed Autumn Budget
increased uncertainty and weighed on consumer
sentiment in the second half of the year, which
impacted sales performance.
Against this backdrop, I am very pleased
we closed out the year robustly. Total Group
completions, including joint ventures, were 11,229
(2024: 10,593) with adjusted operating profit* of
£420.6 million (2024: £416.2 million). UK home
completions, excluding joint ventures, were
10,614, (2024: 9,972), in line with our guidance,
and our net private reservation rate for 2025 was
0.75 homes per outlet per week compared to
0.75 in 2024, with a cancellation rate for the full
year of 15%, the same as the prior year. Excluding
the impact of bulk deals, the net private sales rate
was 0.65, very consistent with the 0.67
we delivered for 2024. More information on
our operational performance can be found on
pages 38 to 45.
The underlying operational ‘excellence’
of the business is something the Group
Management Team (GMT) and I have been
consistently focused on. I am delighted that in
2025 we retained our five-star customer service
status and further improved our construction
quality scores, once again continuing to lead
the volume housebuilders.
I am also delighted that, for the second
consecutive year, a Taylor Wimpey Site Manager
was awarded the prestigious NHBC Pride in the
Job Supreme Award, the pinnacle achievement
within the Pride in the Job Awards programme.
I’m incredibly proud of Lee Dewing and his team
in North Yorkshire, and indeed of all our 50
Taylor Wimpey Site Managers recognised in this
year’s awards. These awards are a testament
to the dedication, leadership and exceptional
standards demonstrated by our teams on site. It
highlights the pride we take in building high-quality
homes for our customers, and the unwavering
commitment behind every stage of construction.
Our first priority is always the health and safety
of everyone on our sites. I am pleased we
improved on our already good scores in the
year, and it continues to be the highest rated area
on our annual employee survey, with 97% of our
employees agreeing we take health and safety
seriously (2024: 98%).
During the year, as you can see from the Chair’s
letter, our clear focus continued to be on the areas
we can control. A good example of this is the
proactive and assertive strategy we have had for
several years to bring land through the planning
system in anticipation of the planning reform,
which is now starting to deliver. Shareholders
have seen this momentum build through the
significant increase in the number of our planning
applications, increased permissions granted and
outlet openings which were up 29% year on year
(2024: 17%). We are confident of opening even
more outlets in 2026 and of increasing average
outlets year on year.
An outlet-led strategy and
new medium term targets
Our strategy here drives competitive advantage
and will enable us to unlock value and deliver
growth from our landbank. This is key to our
medium term (three to five year) strategy as we
target significant growth in volumes and returns
from an increased number of outlets, without the
need for net land investment. During 2025, Group
Finance Director Chris Carney and I, together with
senior management, set out targets and how
we plan to achieve each one, together with the
benefits for shareholders. This is the key focus of
this year’s report. In the year, we also rolled out
our new environmental targets to the business
within our sustainability framework. You can find
more information on this on page 46.
As the Chair sets out in his letter on page 12,
we also announced an update to our Distribution
Policy in March 2026, providing greater flexibility
which the Board believes is in the best interests
of all shareholders.
Well-positioned
for medium term
growth
13
Strategic report
Directors’ report
Financial statements
Shareholder information
Jennie Daly
Chief Executive
In October 2025, we held an Investor and Analyst Update and
launched our medium term strategy and targets to drive growth
in the next stage of the cycle.
We enter the next stage of the housing cycle with ongoing
affordability constraints, but with positive planning reform to drive
greater supply of much needed new homes. We will use our
strong existing landbank to grow our volumes and profits through
an increase in outlets, without the need for net land investment.
We will target a shorter landbank and increased capital efficiency
to drive a materially improved return on net operating assets.
In March 2026, the Board confirmed an update to our Distribution
Policy to enhance flexibility while maintaining annual returns of
7.5% of net assets, or at least £250 million.
How we will achieve our medium term targets
Guided by our unchanged strategic cornerstones, we have the
strong Group structure, culture, management and experienced
teams in place to deliver these stretching but realistic targets.
Increasing volumes
• Outlet-led volume growth without the need for net land
investment as we unlock the value of our strong, existing
landbank and reinvest in smaller sites
• Proactive approach to positive planning environment with
high-quality applications and an assertive approach
Improved margins
• Volume growth, landbank evolution as we cycle into newly
purchased land which benefits from improved margins,
and continued cost base management
Improved capital efficiency
• Reinvesting in smaller sites, improved work in progress (WIP)
efficiency and cycling WIP from larger infrastructure projects
into new smaller sites, and targeting a shorter landbank made
possible by recent changes to the National Planning Policy
Framework (NPPF)
Medium term targets
UK landbank years
(landbank divided by
annual completions)
4.5–5
c.7.2
c.7.8
4.
5–5 years
Target
2025
2024
UK completions
(excl. JVs):
14,000
10,614
9,972
Target
2025
2024
14,000
Group adjusted
operating
profit margin
*
16–18%
10.9%
12.2%
16-18%
Target
2025
2024
Group return on
net operating assets
*
>20%
11.0%
10.9%
>20%
Target
2025
2024
Chief Executive’s strategic overview continued
Read more in the Q&A with Jennie Daly on
pages 16 to 18
Our people and business model are key to executing our strategy,
you can read more about this and our critical resources and
relationships on
pages 21 to 28
Capital allocation
• Updated Distribution Policy which enhances flexibility,
continues to prioritise balance sheet strength and
maintains returns at 7.5% of net assets, or at least
£250 million, per annum
• Housebuilding is a cash generative business and we
expect to generate excess cash over the medium term
Taylor Wimpey plc
Annual Report and Accounts 2025
14
Our strategic cornerstones remain unchanged and are core to delivering value for all stakeholders.
They guide our principles of working while allowing us to be agile to respond to opportunities and risk in changing market conditions
and are core to delivering value for our stakeholders while ensuring we have a strong and resilient business.
Land
An agile approach
to optimising value
• Proactive and assertive approach
to progressing land through the
planning system
• Increasing outlets
• Realising benefit of large
strategic land pipeline
• Liberating our strong landbank
Operational
excellence
Driving efficiency and execution
• Experienced teams and excellent partner
relationships in place to continue to drive
quality standards and efficiency
• Focused on cost efficiency in light of
ongoing build cost inflation
• Continued focus on driving performance
• Advanced preparation for changing
regulations and mitigating where possible
• Optimising value across all areas of
the business
• Driving improved margins as market
conditions improve
Sustainability
Investing to protect
long term stakeholder value
• Investing in the long term success and
sustainability of the business – ensuring
we are fit for the future and for growth
• Refreshed environment targets
• Developed sustainability framework
• Creating thriving communities
Capital allocation
A clear and
disciplined approach
• Maintain a strong balance sheet
• Funding business needs and growth
• Updated Distribution Policy from 2026
to enhance flexibility while maintaining
a reliable distribution to shareholders
• Focused on increasing capital efficiency
to improve returns
Read more on
pages 39 to 40
Read more on
pages 38 to 43
Read more on
page 46 to 49
Read more on
page 12
Chief Executive’s strategic overview continued
15
Strategic report
Directors’ report
Financial statements
Shareholder information
Chief Executive’s strategic overview continued
Q
&A
While there may be short term
uncertainty and challenge, we remain
very confident in the fundamentals
and of Taylor Wimpey’s potential. It is important
to have realistic yet challenging targets to ensure
we are correctly positioning the business and
optimising its potential. We would define medium
term as three to five years.
Our planned growth is outlet-led with assumed
sales rates broadly in line with the rates we have
seen through 2024 and 2025.
We have a great landbank, but it is not efficient
at current volumes. We will make sure that our
assets are working harder for our shareholders in
this cycle. We have a much improved planning
backdrop, and are confident that with improved
land supply, we can target reducing our landbank
years to between four and a half to five years.
We are highly focused on optimising our capital
efficiency to help us to deliver materially improved
returns on net operating assets. Reducing our
landbank years, improving work in progress (WIP)
efficiency and delivering higher volumes will
significantly improve asset turn. For example,
smaller sites will require lower WIP per outlet.
In addition, we will recycle work in progress
investment in nine greater London apartment
schemes over the medium term as well as
additional investment from other infrastructure
heavy sites.
Q
Why did you choose these
specific medium term targets
and why now?
A
Q
Why is growth driven by
outlets this cycle?
A
We have the land and, importantly,
the positive planning position, both
because of our proactive strategy and
the opportunity driven by the NPPF to deliver
outlet growth, and in turn drive volume and
returns growth in this market. Simply put, more
outlets will expand market opportunity. We are
confident that we can grow average outlets year
on year.
on our medium term targets
and strategy
Protecting and enhancing margin has been
a key focus for Taylor Wimpey through the last
few challenging years, and remains so. We have
charted a clear path to delivering adjusted
operating profit margins of 16-18%. Over the
medium term, adjusted operating profit margins
will benefit from operating leverage as volumes
grow and from the evolution of the landbank as
we cycle into newly purchased land with improved
embedded margin.
Finally, that margin improvement combined
with the accelerated asset turn supports our
ambition to increase return on net operating
assets to at least 20%.
Taylor Wimpey plc
Annual Report and Accounts 2025
16
Chief Executive’s strategic overview continued
Our targets are by no means a hard
stop and are not a cap on our growth
ambition. We are a major national
housebuilder with the regional structure and
excellent landbank in place to deliver these
volumes. We have the expertise and capacity
to deliver more.
Q
Is 14k completions the true
capacity of the business?
A
Q
What does the next cycle
look like?
While there remains significant
underlying customer demand, effective
demand, or the ability to transact,
has not returned to previous levels, given
constraints on affordability, particularly for first time
buyers and especially in the South of England.
On supply, the most important element of the
operating backdrop are the very positive changes
to the NPPF and mandatory housing targets
which are now in place. These drive two important
outcomes. First, this tilts the balance of decision
making back towards prioritising housing need
and re-establishes positive tension in the
process between applicants and Local Planning
Authorities. We are seeing early signs of being
able to process our existing landbank more
efficiently to get on to site. Second, the changes
will, by increasing planning decisions overall,
improve the availability of land, bringing more
certainty of outcome. As a result, we are seeing
a greater number of opportunities going into
planning and land availability is improving. In
particular, in these early stages, smaller sites have
the advantage of being more quickly prepared
and are easier for planners to progress. Therefore,
we expect to see an increase in the supply of
smaller sites in the near and medium term.
We are seeing planning applications move
through the system, and we are proactively
positioned to recycle our capital into new,
smaller sites where we see opportunity. I am
confident of Taylor Wimpey’s position here.
A
The NPPF has created a tailwind that
we have prepared for and proactively
leant into to drive momentum.
Recent changes to the NPPF enable us to
target a shorter landbank and this, together with
improved WIP efficiency, and higher volumes
will significantly improve our asset turn and will
support more outlet delivery.
We saw more positive planning decisions in 2025,
as expected, particularly in the final quarter of
2025, indicating growing momentum. It has also
been pleasing to see improving Local Authority
sentiment more generally.
Q
How important is planning
reform to achieving your targets?
A
The Spring selling season has started
well, with encouraging levels of
customer interest, reflecting our
excellent locations, and focus on targeted
marketing and high-quality lead generation.
There continues to be good mortgage availability
at competitive rates as lenders remain committed
to the UK mortgage market. However, while
affordability is improving, it remains difficult for
first time buyers to access the market, particularly
in the South of England.
We entered 2026 with a slightly lower order book
compared to the previous year following a period
of uncertainty for house buyers ahead of the
Autumn Budget in the second half of 2025. As at
1 March 2026, our total order book excluding joint
ventures was £2,182 million (2025 equivalent
period: £2,283 million), comprising 7,678 homes
(2025 equivalent period: 8,097 homes).
The year to date net private sales rate
(w/e 1 March 2026) is 0.74 per outlet per week,
(2025 equivalent period: 0.76). Excluding bulk
deals the sales rate for the period is 0.73
(2025: 0.76). The cancellation rate is 14%
(2025 equivalent period: 16%).
We set out our strategy for medium term growth
with our Investor and Analyst Update in October,
focused on delivering growth from our excellent
landbank without the need for net land
Q
What is the short term outlook?
A
investment, cycling capital into smaller sites and
freeing up working capital from larger sites to
accelerate outlet-led growth. We are making good
progress on outlet openings and are on site on
all the outlets required to deliver our 2026 UK
completions which we expect to be in the range
of 10,600 to 11,000 excluding JVs. Reflecting the
softer market conditions in the final quarter of
2025, we expect 2026 performance to be more
second half weighted with around 40% of
completions in the first half. As previously guided,
Group adjusted operating profit margin for 2026 is
expected to be lower than 2025, reflecting softer
pricing in the order book coming into the year
together with continued low single digit build cost
inflation. Therefore, we expect 2026 adjusted
operating profit to be around £400 million
1
.
As we look to our medium term targets, we
continue to drive the pipeline of new planning
applications, benefiting from our quality strategic
17
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1.
For more information on our guidance for 2026, please see our 2025 FY results statement on our website.
Chief Executive’s strategic overview continued
2026 priorities
• Growing average outlets
• Liberate cash from balance sheet as planned
• Focus on cost efficiency in light of ongoing build cost inflation
• Driving land through planning system
• Tight work in progress management and capital discipline
Finally, on behalf of our Board and
our shareholders, I want to thank our
customers and communities, our
employees and many, many thousands
more suppliers and subcontractors.
As a national homebuilder that operates
locally, we play an important part in the
economic investment, the prosperity and
the very social fabric of where we build,
but we couldn’t do it without the support
and commitment of our people and
our partners.
Jennie Daly CBE
Chief Executive
We are a cyclical business and so
our long term strategy is set up to
manage the cycle effectively through
four consistent strategic cornerstones: land,
operational excellence, sustainability and capital
allocation. First and foremost, these areas remain
our focus and our medium term targets, together
with the plans in place to deliver them, build on
these pillars.
Taylor Wimpey is a strong and agile business
with highly experienced teams, and we are well
positioned to generate value from our high-quality,
well located landbank. Against a backdrop of
continuing market uncertainty and more recent
geopolitical events, we remain focused on
delivering our strategy set out at our recent
Investor and Analyst event in October. This is
progressing well and the actions we are taking
give us confidence in our ability to deliver
profitable growth and maximise shareholder
returns over the medium term.
Q
A
How do your new targets fit
into the longer term strategy?
Our overall distribution has been
maintained at 7.5% of net assets
per annum, or at least £250 million,
in two equal instalments. The change is to add
greater flexibility with a minimum of 5.0% of net
assets paid as an annual ordinary dividend, with
a further 2.5% of net assets returned annually
either by way of ordinary cash dividend or a share
buyback as considered appropriate by the Board.
The Board believes that the greater flexibility
provided by this approach is in the best interests
of all shareholders.
In line with our established capital allocation
framework, we remain committed to returning
excess cash to shareholders as the cycle evolves.
The method of return of any excess cash (share
buyback or special dividend) will be considered at
the appropriate time.
Q
A
Why have you updated the
Distribution Policy?
pipeline and the improving planning system.
We are on track to open more outlets in 2026
than in 2025 and continue to expect average
outlets to increase year on year in 2026 and into
the medium term. Newer land will help drive
margin progress from 2027 onwards and we will
continue to unlock value through operational
excellence, protecting and maximising returns.
*
Definitions and reconciliations of our APMs to
the equivalent statutory measures are included in
Note 32 of the financial statements. Please see
page 81 for definitions.
Taylor Wimpey plc
Annual Report and Accounts 2025
18
Adding value
Delivering social
and economic value
Housing delivery matters, not only to Taylor Wimpey,
our customers and partners, but to the UK economy
and society as a whole. Our purpose to build great
homes and create thriving communities is central to this.
The homes we build enable growth, support communities
and contribute to a more resilient, more inclusive future.
A key driver of economic activity
Every Taylor Wimpey development supports skilled employment
across construction, manufacturing and the wider supply chain.
In England and Wales, the new housebuilding industry generates around
£53 billion of economic output and supports over 830,000 jobs
1
.
Housing delivery is not only a social necessity, it is an essential driver
of economic health and productivity.
Unlocking infrastructure investment
The delivery of new housing helps to bring forward the community
infrastructure and facilities that local areas need to thrive. Without sustained
housing delivery and developer-led investment, local businesses can
struggle to attract talent and communities risk long term stagnation.
In 2025, Taylor Wimpey delivered £359 million to the local communities in
which we build across the UK via planning obligations (2024: £345 million).
This funded affordable housing, green space, community facilities, commercial
and leisure facilities, transport infrastructure, heritage buildings and public art.
Fundamental to social mobility
A secure and affordable home underpins the foundations for education,
health and wellbeing. Today, millions of young people, especially first time
buyers, face significant barriers to home ownership. We continue to engage
constructively with policymakers on practical, targeted measures to improve
access to housing.
We deliver a mix of affordable and shared ownership homes through our
planning obligations, working closely with Local Authorities and partners to
provide a range of tenures that meet different buyer needs.
1. Home Builders Federation (HBF), The Economic Footprint of Home Building in England and Wales.
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Creating sustainable,
connected communities
Through high-quality design and placemaking principles
and a strong commitment to customer experience,
we create successful and sustainable new communities,
where people can thrive.
Our placemaking principles, guided by our Placemaking Charter,
ensure new neighbourhoods are well connected, welcoming and
built to a high standard, enabling our customers to enjoy a good
quality of life. Our commitment to building energy-efficient homes
also helps reduce running costs for our customers, which is
especially important for those taking their first step onto the
property ladder.
Our Placemaking Charter
Our Placemaking Charter guides our
approach and is based around five key
principles that shape every development:
• Places where life happens
• Attractive and welcoming places
• Safe places
• Places designed with nature
• Connected communities
Investing in charities and local causes
Taylor Wimpey is committed to supporting charities and
community organisations in the areas where we build, recognising
our responsibility to contribute positively to the wellbeing and
resilience of local communities. We prioritise causes linked to
aspiration, education and wellbeing, as well as projects that tackle
homelessness and support vulnerable groups.
Our national charity partners reflect these priorities and include CRASH,
Crisis, St Mungo’s, EveryYouth, Magic Breakfast, and the Youth Adventure Trust. Led by our Charity
Committee, we provide structured support to these organisations alongside local donations chosen
by our regional businesses where our funding, time and expertise can create meaningful impact.
In 2025, Taylor Wimpey contributed c.£1 million to national and local charities, community
organisations and resident-led initiatives (2024: c.£1 million), in addition to time from employee
volunteering supported through our Volunteering Policy. In 2025, our Annual Taylor Wimpey
Challenge, comprising of a hike and a variety of team challenges, raised over £174,000.
Case study
Helping to tackle
homelessness and expand
access to skilled jobs
Our partnership with St Mungo’s, the
homelessness charity, helps people
recovering from homelessness to gain
new skills and find employment in the
construction industry. In 2025, we donated
£200,000, which helped St Mungo’s to
secure a location for their new Bristol Skills
Centre which will open in 2026, and to move
one of their London Skills Centres to a larger
premises where they can help more clients.
At the Skills Centres, St Mungo’s clients
can gain new skills, build their confidence,
work towards an accredited City and
Guilds Construction Skills qualification and
access work placements. A Taylor Wimpey
team also took part in a sponsored rig climb
at the Cutty Sark ship in London raising
further funds.
Taylor Wimpey plc
Annual Report and Accounts 2025
20
Adding value continued
What we do
How we make
money and invest
Critical resources
and relationships
How we are evolving
A model for
the full cycle
We manage the homebuilding process
throughout the value chain, from original land
investment decision to after sales care.
Our business model
Read more on
pages 22 to 23
Read more on
pages 24 to 25
Read more on
pages 26 to 28
Read more on
page 28
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Shareholder information
Our business model continued
What we do
Make the right land investments
We buy land at the right price, using our longstanding
land and planning expertise, creating high-quality
developments in places customers want to live.
Our teams understand local housing needs, select
the right locations and develop these through the
planning system.
How we identify land opportunities
We consider the macro and micro location of our
land. For example, the macro location may be city,
broken down by major suburb, town, village or rural
area. The micro location is the position within the
macro location.
Our land investments can be with us for several years,
so it is vital we get it right. We use an internal rating
system, ranking our sites to ensure we identify the most
suitable locations. This approach applies to how we
continue to target high-quality locations and is a key part
of how we manage the business throughout the cycle.
Detailed upfront financial assessment
Every potential land investment is reviewed for sign off
by our Chief Executive, ensuring tight control over
Group capital. Our experienced land and regional
management teams conduct a detailed commercial
assessment called a Land Purchase Exercise (LPE) to
determine the amount we are prepared to bid. The LPE
is presented to our Chief Executive and other senior
management who provide the challenge and scrutiny
necessary to ensure we invest in the right areas, at
the right returns and with the appropriate risk profile.
Types of land
We develop two main types of land. Short term land has
some form of planning status for residential development,
though it may still be months or years from reaching
implementable planning permission that will allow us
to build.
The second type is strategic land, which does not
have any planning status or approval for residential
development. Our highly experienced strategic land
teams often work on land long before it is earmarked
for development when there is no certainty that it will
achieve planning permission.
Alongside our short term landbank, our strategic pipeline
allows us to develop land in a balance sheet-efficient way,
given that most of our strategic pipeline is controlled via
option agreements. We typically buy this land when we
have achieved a certain planning status, generally at
a discount to market value. This enhances our visibility
of land supply, helps protect our margins and allows us
to be selective in the short term land market.
We have an excellent track record of developing
high-quality locations and only include plots in our
strategic pipeline that we believe have a greater than
50% probability of gaining planning approval.
c.133k
potential plots in the strategic pipeline
as at 31 December 2025
(31 December 2024: c.136k)
Manage the planning process
Our teams work closely with Local Authorities and
other regulators to meet increasingly complex technical,
environmental and health and safety requirements.
We strive to open our sites as efficiently as possible;
however, the time between buying land and opening
our sites is dependent on site-specific planning status
and conditions.
Working with communities
Community consultation is key. While housing is
much needed, development can be disruptive to
local communities. We engage and consult with local
communities throughout the process, highlighting the
benefits our developments bring in terms of employment,
infrastructure, the economic activity they create and
enhancing local biodiversity.
We held over 120 community meetings and events
in 2025. Universal acceptance may not be achieved,
but we do our best to outline the benefits of our project
and to minimise disruption.
Affordable housing
and community facilities
In 2025, 21% of our UK completions were affordable
housing (2024: 22%). We deliver significant local
economic benefits, including employment, and through
our planning obligations build or fund the building of
numerous schools, and leisure and recreational facilities.
Working with Local Authority partners
Progressing our land to detailed and implementable
planning, where we are permitted to start on site, can
take months or even years. During this process, our land,
design, technical, production and legal teams consult
with Local Authority partners and other interested parties
to resolve issues and achieve the required permits.
Appropriately, there is a significant administrative burden
to overcome before we can begin building. For example,
we must work with National Highways and local highways
alongside many other statutory consultees such as the
Environment Agency, the Lead Local Flood Authority, and
Natural England. We must coordinate services such as
electricity, water and sewers, and establish infrastructure
such as roads, before we can start building.
21%
affordable completions in 2025
(2024: 22%)
Taylor Wimpey plc
Annual Report and Accounts 2025
22
Our business model continued
What we do
Design and develop sustainable homes
Getting it right from the outset
Our purpose is to build great homes and create thriving
communities. We add significant economic value to our
areas of operation. We ensure our developments are
in the right location to provide customers with good
access and connections to infrastructure and facilities and
nature. We deliver schemes that become successful and
sustainable new communities, where our customers can
enjoy a good quality of life. We also mitigate environmental
risks such as flood risk as part of our early site and
development evaluation.
Meeting the needs of our customers
We design our homes to meet the needs of our customers
today and in the future. Our energy-efficient homes
meet or exceed regulatory and biodiversity requirements.
We use the digital platform LEADR (Land and Environment
Assessment of Development Risk), to assess and
manage sustainability and technical risks associated
with land during the acquisition and construction process
(read more on page 53).
Thoughtful placemaking
We consider how our developments work as a whole
and how they will contribute to a thriving community.
Thoughtful placemaking includes attractive landscaping
and shared communal and recreational areas, allowing our
customers to feel part of a community and adopt active,
sustainable lifestyles. We design carefully considered street
scenes and consider how our developments interact
with nature. Considered plotting means we use our land
resources efficiently.
Our completed sites are required to have a minimum of
10% more natural habitat than when we acquired them.
We proactively engage in consultations on proposed
regulation (such as the Future Homes Standard) to help
shape effective outcomes and ensure the business is
well prepared ahead of implementation.
10%
minimum natural habitat gain
on our completed sites
Build efficiently and deliver for customers
The health and safety of our employees and
subcontractors is always our number one priority.
Accurate budgeting and active management enable
us to set up our sites to deliver on our targets. Our
Taylor Wimpey Logistics and central procurement
functions support efficient and consistent operations.
Our timber frame factory continues to scale up
production to support our strategic goals.
Driving quality standards
Quality is key to protecting our reputation and the
sustainability of the business and we pride ourselves on
providing a positive experience for customers throughout
their buying journey. Our ‘right first time’ approach results
in strong customer satisfaction scores and we have
consistently been one of the highest independently rated
volume homebuilders in terms of construction quality.
Our standard house types – designed following extensive
consumer research – help us maintain high quality
through supply chain familiarity with our control
processes and materials.
Maintaining excellent supplier and subcontractor
relationships is how we keep up our high standards,
and protect our reputation as the ‘partner of choice’.
Support customers through the buying process
Our highly trained and dedicated sales teams use our
customer relationship management (CRM) system to
identify high-quality customer prospects and optimise
conversion and service levels throughout the buying
journey. This includes real time dashboards, lead scoring
and management reporting.
Tailored solutions
Our sales teams understand and meet customer
needs by offering a range of tailored solutions.
These could include mechanisms to assist the
buying journey and home personalisation.
New homes warranty
Our responsibilities do not end when we have completed
a home sale. Our homes come with our own two-year
warranty and the National House Building Council (NHBC)
Buildmark 10-year warranty as standard. Our Customer
Relations Managers are available to our customers and we
have improved our processes to enhance our customer
service, extending our customer contact to well beyond
the sales period.
10
-year
NHBC warranty on our homes
How our structure adds value
Economies of scale
We are a leading UK homebuilder with a national reach,
operating at a local level. We are financially strong and
have committed and experienced teams. Our high-quality
landbank and strategic pipeline, provide visibility and growth
potential. As a national homebuilder we enjoy benefits of
scale, for example from standardisation and procurement.
Our business benefits from a shared purpose and is
underpinned by a strong Group culture and values.
Supporting the regional businesses
The Board is responsible for establishing and monitoring
our strategy and looks to the Group Management Team
(GMT) to implement strategy on a day to day basis.
The GMT comprises our Chief Executive, Group Finance
Director, Group General Counsel and Company Secretary,
Divisional Chairs and Group Human Resources Director,
and, in 2026 we have added a new role of Group
Customer Experience Director.
Our Divisional Chairs oversee five divisions covering
22 UK regional businesses: Scotland, North East and
North Yorkshire; North West and Yorkshire; Midlands and
Wales; London and South East; and Central and South
West. We have a decentralised structure, with each
regional business led by its own management team.
On top of this, we have a clear operating framework
with key controls in place, such as our health and safety
teams, to maintain consistency across our operations,
to benchmark best practice and achieve efficiencies.
Alongside our 22 Managing Directors, the key regional
functions are: commercial, customer service, finance, land
and planning, production, sales and marketing, and technical.
Centrally, Group department heads are there to support
and optimise operating conditions for our regional
businesses. Our structure includes non-negotiable
processes covering areas such as health and safety
and compliance. This is key to maintaining high standards,
driving value and mitigating risk. In addition, central roles in
sustainability, community, legal, Internal Audit, IT, HR,
communications and administration further support
the regional businesses. Further details on our risk
management processes and internal controls can be
found on pages 68 to 70.
Brand strength
The regional businesses benefit from our strong, trusted
brand and national supplier relationships. Taylor Wimpey
Logistics provides hub and spoke distribution to our
regional businesses to improve efficiency and security
of supply. In addition, our in house timber frame production
facility, Taylor Wimpey Manufacturing, helps address a
critical business dependency.
Underpinned by strong culture
Our values of ‘respectful and fair’, ‘take responsibility’,
‘better tomorrow’ and ‘be proud’, guide the way we work
at Taylor Wimpey. We work hard to maintain our culture
and regularly survey our employees to ensure we are on
the right track. Not only is a positive culture key in driving
high performance, it is also vital in attracting and retaining
high-quality people in an industry with a recognised skills
shortage. Further details on how the Board assesses and
monitors our culture can be found on pages 108 to 110.
23
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Shareholder information
Allocating and recycling capital
Investing in land
We make money by buying land, developing it through
the planning system and completing the sale of the homes
we build. There is typically a period of several years
between our initial land investment decision and the
moment we realise our return. However, as an established
business, our constant flow of maturing land investments
allows us to cycle capital more efficiently than would be
possible from a standing start.
We work hard to establish the economic parameters of a
development before committing to an investment decision.
In every case, our experienced teams identify land where
potential customers want to live. Afterwards, our expertise
and tight operational controls allow us to enhance and
protect that value throughout the value chain.
Deploying capital to site
In the early stages of a development, we deploy capital
to develop infrastructure such as services, sewers, gas,
electricity, water, telecommunications, supply roads,
and general landscaping.
When we have established early site infrastructure, we
build a sales centre, including a number of show homes.
We typically begin our selling processes when we have
opened our sales centre, allowing customers to experience
examples of the homes we will build.
Realising and recycling value
We sell ahead of and alongside production to ensure we
are protecting capital and not building up excess stock.
Forward sales (which typically amount to several months’
worth of sales) provide good visibility of future income.
However, we only receive funds for private sales when
we have completed our sale and handed over the keys
to our customer.
Budgeting processes
Our 22 regional businesses have a good deal of autonomy
and are charged with managing capital efficiently.
Our ‘bottom-up’ budgetary process ensures accountability
– each regional team agrees its budget first with the
Divisional Chair, and then with the Chief Executive
and Group Finance Director.
Our incentive schemes align to shareholder interests
and our medium term targets with measures including
adjusted operating profit*, adjusted operating profit
margin*, return on net operating assets*, cash conversion
and total shareholder returns versus our peer group.
Further measures ensure we run the business sustainably,
with incentives linked to maintaining high customer service
and build quality levels and reducing our carbon emissions.
Controlling work in progress
Each regional business has tight work in progress (WIP)
controls in place, with oversight from our Divisional Chairs
and Executive Directors. Each regional business monitors
site sales rates and other demand indicators to ensure it is
deploying the appropriate level of investment in its build
programmes. This is key, since once we start foundation
works on a home, we have begun the WIP investment
cycle that will typically last around nine months until the
home is completed.
In addition, we invest in building infrastructure such as
roads, services and public facilities. Therefore, it is vital
that we manage WIP effectively, releasing investment
that appropriately reflects the demand environment
we are facing.
Dividends
Our Distribution Policy provides reliable returns to investors
through the cycle. Capital allocation decisions are based
on our long term goals, as well as what we are seeing
on a day to day and month to month basis in our market.
There is a decision hierarchy that defines how we allocate
capital. Our first priority is to ensure we have a strong
balance sheet at all times. We must then satisfy the
requirements of the business for investment in land, WIP
and business needs. We are then able to offer returns
to shareholders via our Distribution Policy (read more on
page 12). Any excess cash will also be returned to
shareholders at the appropriate time in the cycle.
6.8k
homes
in the order book (excluding JVs) as at 31 December 2025
(31 December 2024: 7.3k homes)
Optimising margin
As previously stated, we establish expected returns at
the outset, and to protect and optimise our margin and
returns, we must tightly manage costs throughout.
With an efficient standard house type range, consistent
processes, and the ability to leverage the only logistics
business in the sector, we are able to drive efficiency
and stakeholder value.
A cost control mindset is embedded in our business,
and we have installed management information
systems and leveraged IT to drive further efficiencies.
Operational excellence is not just about driving
efficiencies and cost savings, it is equally about raising
and maintaining high standards to ensure we are
delivering high-quality homes and excellent customer
service. Both are key to protecting our reputation
and the sustainability of the business.
We have driven consistently high build standards
and remain a leader in the volume industry in the
independently assessed Construction Quality
Review (CQR) measure.
Our business model continued
How we make money and invest
Taylor Wimpey plc
Annual Report and Accounts 2025
24
Controlling processes
We have extensive control processes in place to ensure
we are protecting value from land acquisition through to
completed development. We have invested in our customer
service to drive both quality and service, through training
provided by our internal academies. We work throughout
the business to ensure we are well prepared to meet the
challenges of changing regulations well ahead of
their implementation.
When we progress to build stage, day to day responsibility
passes to the local site management team, with oversight
from the regional management teams, including regular
monitoring by commercial and finance, with ultimate
responsibility residing with the regional Managing Director.
The commercial team ensures that costs of labour and
materials are as expected, with regular updates provided
by our commercial teams. Managers have access to an
information dashboard throughout the life of a development,
which allows them to control costs.
National framework agreements
The Group has national framework agreements in place
to access economies of scale, and to ensure consistent
quality. Taylor Wimpey Logistics provides ‘build packs’ that
can be requested on a ‘just-in-time’ basis by site teams,
ensuring standardisation and security of supply.
Typically, our sites are managed by Taylor Wimpey
employees. However, given that we are regularly opening
and closing sites, it is important to have a flexible cost
base. Therefore, the vast amount of our day to day labour
is provided by subcontractors. These subcontractors
like to work with us because of our efficiency, visibility of
earnings, and our no-compromise approach to health and
safety. During 2025, on average c.9.6k operatives worked
with us on our sites (2024: c.9.4k).
Group adjusted operating profit margin
10.9%
(2024: 12.2%)
Key costs
To protect our margin, we tightly manage costs from the
onset and through each subsequent stage in the process
of a development.
Our key costs include land, labour, building materials and
central overheads including design, finance, legal and
administrative functions. We operate with tight cost
discipline and, over the past few years, have invested to
improve management information systems, enabling us
to keep close control of costs across our business.
Against a backdrop of rising regulatory costs, we work
on continuous business improvement to find efficiencies
and cost savings. This allows us to optimise our margin in
times of higher demand while minimising margin impact
in times of lower demand. Standardisation via our standard
house types will help us to drive efficiencies. Increasing
subcontractor familiarity with our processes enables us to
build right first time. Using industry-standard products
and procedures helps us to achieve economies of scale
from our suppliers. Both factors help us control our costs.
We establish framework agreements with our suppliers to
provide visibility on our costs. We tender for subcontractors
at each new development to help establish the economic
parameters of our sites at the outset. Benchmarking across
the Group helps maintain best practice in cost control.
In recent years, our margins have been negatively affected
by falling effective demand and rising costs. If cost increases
are not met with rising house prices, as has happened in
recent years, there is an inevitable impact on margin.
Upgrade options and financial incentives for our customers
are a useful tool to cement interest, particularly in weaker
markets. We carefully manage incentives, since these directly
impact our profit margin. We state reported selling prices
net of incentives.
Investing in our long term success
While we seek to grow, we want to do this in a responsible
way, including protecting our environment, and it is our
target to reach net zero in our operations by 2045.
Our timber frame facility is a good example of how we
have invested to improve both our efficiency and our
environmental performance.
In 2024, we launched Innovate
TW
, a Company-wide
programme aimed at transforming the way we use
technology, freeing up our employees from routine
tasks to allow them to focus on areas of greater value
to the business.
Our internal and customer-facing systems enhance our
ability to support customers. We have continued to advance
our training capabilities, bolstered by a number of best
practice academies. We also continue to invest in business
improvement via standardisation and procurement, and in
implementing operational best practice and benchmarking.
Read more about our performance through our
key performance indicators on
pages 44 to 45
and about our Principal Risks on
pages 71 to 76
Reinvest and return
By protecting and optimising value throughout the
value chain, we are able to both return capital to
our shareholders and reinvest in our business.
Dividends paid in 2025
£330m
2025
202
4
202
3
£330m
£339m
£338m
Updated Distribution policy
Our ‘Distribution Policy’ is to return 7.5% of net
assets per annum, or at least £250 million, in two
equal instalments. It is the Board’s intention to return
a minimum of 5.0% of net assets as an annual ordinary
dividend, with a further 2.5% of net assets returned
annually either by way of ordinary cash dividend
or a share buyback as considered appropriate by
the Board.
In line with our established capital allocation
framework, we remain committed to returning excess
cash to shareholders as the cycle evolves. The method
of return of any excess cash (share buyback or special
dividend) will be considered at the appropriate time.
Our business model continued
How we make money and invest
Optimising margin continued
25
Strategic report
Directors’ report
Financial statements
Shareholder information
Materials
Why it’s important
We rely on third parties for most of our materials.
Ensuring a timely supply of material is key to operating
efficiently and our ability to build high-quality homes.
Key areas
Our key materials include brick, cement and concrete,
timber and roof tiles. We extensively use external and
internal doors, windows and insulation, and increasingly
use solar panels on our homes.
We use a small amount of steel, mostly related to fixings.
Other common materials include gypsum (plasterboard),
flooring, kitchens, sanitary ware and white goods.
How we manage this
We have national supplier partners. Our national
agreements provide valued visibility to our suppliers
and enable us to benefit from bulk discounts.
We seek to minimise supply chain disruption by operating
at least a dual supplier strategy for key components.
Land and environment
Why it’s important
Land is our key resource underpinning our ability to fulfil
our purpose of building great homes and creating thriving
communities. Achieving a reliable supply of land with
planning is key to ensuring continuity of production in our
sites and delivering our strategy and targets. We need to
protect our environment to fulfil our purpose, meet our
stakeholder obligations and protect our land investments.
Key areas
We develop short term land which describes land that
has some form of planning for residential development,
our ‘landbank’. We also have a strategic pipeline (where
we progress land that has no planning for residential
development through the planning system). To operate
sustainably we need to protect the environment, mitigate
environmental risk and meet our regulatory obligations.
How we manage this
We develop long term relationships with land vendors and
Local Planning Authorities. We have a strong landbank and
our experienced teams have an excellent track record of
developing our strategic pipeline. A landbank that is too long
reduces business efficiency and impacts returns. Our current
landbank years of 7.2 (the number of years of land supply in
our short term landbank based on current completion levels)
are longer than we would like. Our target is to reduce
landbank years to between 4.5 and 5 in the medium term.
Our environmental targets ensure we are aligned
throughout the business in protecting the
environment in which we operate.
We are required to ensure at
least 10% natural habitat
gain on new sites or
make an equivalent
contribution.
Workforce
Why it’s important
Our people are what makes us Taylor Wimpey.
They are instrumental in embedding our culture,
driving our performance and fulfilling our purpose.
Key areas
The housebuilding process involves numerous skilled
technical and support personnel. Experience and
competence are key in delivering results in a complex
backdrop with specific regulatory requirements.
Taylor Wimpey UK has around 4.4k employees in the
Group. We have highly experienced and dedicated
teams throughout our 22 regional businesses and in
our Head Office, with expertise in land and planning,
legal, commercial, production, technical, design,
and sales and marketing.
How we manage this
We have a strong and supportive Group culture, and
regularly survey our employees to ensure we remain
an employer of choice. The Board has an Employee
Champion, and we have local and national employee
forums to ensure we are delivering for our workforce.
We have a key priority of retaining and developing our
talent, with a focus on training and development as
well as competitive compensation schemes.
Regulatory and
legal environment
Why it’s important
Given the fundamental nature of housing to UK society
as a whole, there is a significant amount of regulatory
oversight into standards and practices in our industry
(read more on page 35).
Key areas
We recognise the need for strict regulation on health and
safety, both during the development process and in relation
to the homes we deliver. Updated regulation tackles areas
such as limiting climate change. We regularly cooperate
with the Government on consultations.
How we manage this
Health and safety is our number one non-negotiable priority
for all our employees, and our Site Managers are required
to ensure that this is also reflected by our subcontractors,
who are required to sign up to our Code of Conduct.
We focus on driving our build quality standards and
have the highest levels of build quality of the volume
housebuilders, with build quality monitored as a key
performance indicator (KPI).
We ensure build compliance, benchmark our performance
across the Group and have strong oversight from our
management and health and safety teams on every site.
Our business model continued
Critical resources and relationships
Taylor Wimpey plc
Annual Report and Accounts 2025
26
Suppliers and
subcontractors
Why it’s important
Our suppliers and subcontractors play a major role in
our business. While not direct Taylor Wimpey employees,
they are key partners and it is important their values are
aligned with ours to ensure the business operates safely
and efficiently.
Key areas
We rely on subcontractors for a significant proportion of
our roles on site. They are key partners that enable us
to respond with agility to the demand environment.
We provide employment for thousands of skilled
tradespeople, working with, on average, c.9.6k operatives
in 2025 (2024: c.9.4k). We rely on suppliers to provide
high-quality materials in compliance with regulations in
a timely manner to meet our production requirements.
How we manage this
We manage each of our sites with our own team of
Site Managers, sales teams, health and safety personnel
and Production and Technical Managers.
We have a central procurement team that is responsible
for managing our central supplier relationships and
compliance. In addition, each of our businesses has
trusted relationships with local subcontractor partners.
We choose suppliers carefully, selecting partners that share
our values. Key strategic partners have quarterly reviews.
All of our subcontractors are required to sign up to our
Code of Conduct.
Government
Why it’s important
The Government sets the agenda in terms of planning
policy for the UK. It introduces new laws that govern
practices and build standards, as well as taxes that
directly and indirectly impact our operations.
Key areas
Key areas in recent years include the reformed National
Planning and Policy Framework that has reset the
planning backdrop, the Future Homes Standard,
the Building Safety Levy, Landfill tax and Nutrient
Neutrality (read more on page 35).
How we manage this
We work proactively, imputing on Government
consultations on a number of issues connected to
UK housing. We engage on proposed new regulation,
suggesting improvements to help shape the agenda
and highlight any potential unintended consequences
of regulatory change.
Local Authorities and
Housing Associations
Why it’s important
Housing decisions are first made at a Local Authority
level. Developing good working relationships with Local
Authorities and understanding local needs are fundamental
to our business.
Key areas
Within the guidelines set out by the Government in terms
of housing requirements, the Local Authority is responsible
for assessing and managing a Local Plan and maintaining
a five-year land supply for housing development in
accordance with its housing requirement. This helps
develop trust and the foundations of the development
of thriving communities.
How we manage this
Engagement with local government and Housing
Associations forms a key part of our planning process,
enabling us to reflect local priorities in the design and
delivery of our developments.
Our strategic land team work hard to understand local
requirements and work with Local Authorities to submit
high-quality applications for land that will help fulfil local
development requirements and ensure our future outlets.
Customers and
communities
Why it’s important
Customers are the lifeblood of our business. It is vital we
develop high-quality homes that meet their requirements in
areas they want to live. Getting this right fulfils our purpose
of building great homes and creating thriving communities.
Key areas
We compete against the second-hand market, which
takes the largest share of annual housing transactions
(read more on page 32). Customers are increasingly
discerning and are looking for quality product, that is well
located for employment, is energy-efficient and offers
a high quality of living for their families.
How we manage this
We start with the right locations, with excellent
accessibility, close to population centres that need
more housing, transport hubs, local employment and
retail and leisure facilities.
We drive build standards to provide high-quality homes to
our customers to fulfil the first part of our purpose. We seek
to develop excellent placemaking to ensure communities
can thrive to fulfil the second part of our purpose.
High levels of customer service are key to ensuring our
customers’ experience is positive and our reputation and
sustainability are protected. Quality and customer service
are prioritised and are recognised as KPIs measured across
the Group.
Our business model continued
Critical resources and relationships
27
Strategic report
Directors’ report
Financial statements
Shareholder information
Identifying stakeholder
priorities
•
Customers
– quality product and good service
along their journey
•
Investors
– share price growth, reliable and
transparent returns – it is in their interest that the
business is optimised at all stages of the cycle
•
Employees
– a great place to work, the right
remuneration and opportunities for advancement
•
Supply chain partners
– maximise their earning
potential and to grow alongside us in the longer term
•
Local Authorities
– attractive environment for
constituents, affordable homes, minimal disruption,
local employment and tax revenue
•
Government
– more housing that is affordable
for the UK and a planning system that supports
economic growth
•
Local communities
– local employment opportunities
and facilities with minimal disruption to their lives from
our build
Managing trade-offs
between stakeholders
Increasingly, stakeholders want to work with values-based
businesses. This is something that is important to our
customers, employees, investors, local communities,
government and Local Authorities. Our supply chain
appreciates the lengths we go to protect their health and
safety on our sites. However, while there are many areas
of shared stakeholder interest, there are undoubtedly
some trade-offs we need to evaluate.
For example, customers cannot be expected to pay more
for a house to accommodate above-market employee
pay rises, while investors will have a preference about the
size of our cost base. On the other hand, maintaining a
good working environment and staff retention are key.
Balance between these competing demands is critical.
Annual shareholder returns are important, but so is the
long term growth of the business. Therefore, there are
times when the Board will opt to invest in growth rather
than return capital to investors, over and above the level
set in our Distribution Policy.
Safety for employees is non-negotiable and would never
be a trade-off. Relationships with communities are
important, but not all developments are welcomed by
surrounding communities. We mitigate this through
the outreach work we do, but developments can be
disruptive by nature and may still prove unpopular,
particularly during the build stage.
Read more about our stakeholders
on
pages 84 to 86
Our business model continued
Critical resources and relationships
How we are evolving
Evolution in the way we work
Research and development (R&D)
As well as identifying new products, our R&D efforts
have introduced a range of new solutions for
our build processes that improve efficiency and benefit
health and safety. Innovation is also integral to our
Future Homes Standard strategy, developing solutions to
enhance cost-efficiency, sustainability and customer value
(read more in our Sustainability Summary on our website).
Research and product trials help us to keep improving the
homes and places we build for customers, to align with
changing regulation and to benefit from technological
development. Our Director of Research and Technical
Innovation oversees our research strategy and chairs our
Innovation Group for New Ideas, Transformation and
Excellence (IGNITE), and Road to Net Zero Carbon
working group (read more on page 43).
Modern methods of construction
Incorporating more modern methods of construction
(MMC) into our process also constitutes an evolution
of our model. Up to now, modular build has proven
problematic in the UK, given the limitations of road
infrastructure and redundant cost in structural materials
to enable transportation of modules. We have, however,
been pursuing componentisation, where key components
are built off site and then assembled on site and
most of our homes now include some form of
MMC componentisation.
For our ‘room in the roof’ house types, roof structures are
largely constructed off site and craned into place ready for
tiling. Staircases and ceiling and roof cassettes can also
be added in the same way. Another example of an off site
modular solution is SmartPUC, an award winning off site
manufactured utility cupboard designed for loft spaces,
one of a number of our recent innovations. Here we
collaborated with Smartroof on product development.
Vertical integration
Increasingly, we use timber frame to benefit from greater
flexibility and reduce our carbon emissions, and we
established our own timber frame facility in mid-2023.
Delivering new sites
Changes in land availability and planning rules have
affected the way we operate. Attractive locations
can often present significant challenges in terms of
accessibility for building, including more challenging
topographies, such as steep or uneven surfaces or
challenging ground conditions. Our highly experienced
teams are skilled in developing solutions ahead of
upcoming regulatory changes and in addressing
ongoing site challenges.
In our October 2025 Investor and Analyst update, we
outlined our focus on delivering growth from our excellent
landbank without the need for net land investment, cycling
capital into more smaller sites and freeing up working
capital from larger sites to accelerate outlet-led growth.
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements. Please see page 81 for definitions.
Taylor Wimpey plc
Annual Report and Accounts 2025
28
2025 overview
Housing market conditions were robust at the
end of 2024 and the start of 2025, which was
reflected in a strong 2025 opening order book
position. However, conditions softened from the
second quarter, with the second half of the year
more subdued, reflecting uncertainty ahead of
the UK Budget.
During 2025, there were four 25 basis point cuts
to the base rate, reduced borrowing costs for
customers, and with wage growth outpacing
inflation and house price growth, affordability
improved for many potential customers. However,
with no meaningful support for the segment,
first time buyer affordability continued to remain
stretched. In addition, significant levels of
second-hand housing for sale affected demand
and pricing for new homes.
Implementation of the updated NPPF began
in 2025, with some early positive signs. The
Planning and Infrastructure Act became law at
the end of 2025, which should help to streamline
decision making and support the delivery of
planning consents.
The new build market:
sector context
In 2025, private new build completions represented
around 6.4% of transactions in the UK. This is a little
lower than the 7.8% on average over the five year
period from 2020 to 2024, reflecting a significant
uptick in second-hand homes for sale during 2025.
Because the new homes sector remains a small
segment of the overall housing market, pricing is
dictated by the second-hand market. Drivers of
demand tend to follow the same trends in both
the new build and second-hand homes markets.
Therefore, the health of the second-hand market is
key for our sector.
New build supply is impacted by Government
policy, land availability and regulation.
2025 private new home completions as a proportion
of property transactions in the UK
Our market environment
A challenging
backdrop in 2025
Drivers of demand
•
Interest and mortgage rates and
mortgage availability
– impact affordability
and ability for customers to transact and
therefore the health of the market
•
Employment and consumer confidence
– affect the ability and confidence of
consumers to purchase houses
•
House prices
– impacts the affordability of
housing and the profitability of homebuilding
•
Rental cost
– influences the relative
attractiveness of ownership versus renting
and therefore affects demand
•
Second-hand transactions
– set the
price for the overall housing market and
are an indicator of the health and liquidity
of the market
•
Population growth
– affects demand for
housing and therefore pricing dynamics
Drivers of supply
•
Planning backdrop and land availability
– impact the supply and timing of land
available for homebuilding, the industry’s
ability to meet housing demand, and affects
land prices
•
Government policy
– impacts the
political support for the planning system
and development
•
House prices and build costs
– impact
the profitability of homebuilding
•
Labour and material availability
– impact
the resources available to build new homes
•
Industry regulation
– impacts barriers
to entry and cost
6.4%
new home
completions
2024: 7.1%
Sources: HMRC, NHBC
29
Strategic report
Directors’ report
Financial statements
Shareholder information
Following the February 2025 rate cut, mortgage rates trended down throughout the year
0
1
2
3
6
5
4
7
Mortgage rate %
Jan
2024
Mar
2024
May
2024
Jul
2024
Sep
2024
Nov
2025
Dec
2025
Nov
2024
Jan
2025
Mar
2025
May
2025
Jul
2025
Sep
2025
Five-year 75% LTV fixed-rate mortgages
Two-year 75% LTV fixed-rate mortgages
Source: BoE
Easing of interest rates
supporting affordability
Interest rates are one of the key tools the
Bank of England (BoE) uses to manage economic
growth and inflation. The Government mandates
the BoE to target UK inflation of 2%.
Despite the pick up in inflation in 2025, which
continued to exceed the 2% target, the BoE
made four 25 basis point cuts to the base rate.
At the start of 2025, the base rate was 4.75%,
and following cuts in February, May, August and
December it ended the year at 3.75%.
The Consumer Prices Index (CPI) started 2025 at
3.0%, reducing to 2.6% in March 2025. However,
as a result of the increase in the energy price cap
which came into effect in April, the CPI increased
to 3.5% in April and reached 3.8% in July, August
and September, ending the year at 3.4%.
Following the Government’s Budget on
26 November 2025, the Office for Budget
Responsibility (OBR) increased its expectations
for CPI inflation to 2.5% in 2026, which
continues to exceed the BoE target.
Mortgage rates reflect interest rate expectations.
Overall mortgage rate stability and affordability
continued to improve in 2025, and following the
February rate cut, mortgage rates trended down
throughout the year. According to the BoE, the
average monthly mortgage rate for a five-year
fixed mortgage with a 75% loan-to-value (LTV)
decreased from 4.37% in December 2024 to
4.0% in December 2025.
Using the BoE’s average quoted household
interest rates, a five-year fixed 75% LTV mortgage
for a £300k home with a 25-year term would
have cost £1,188 per month in December 2025,
compared to £1,234 in December 2024.
Our market environment continued
3.75%
BoE base rate at the end
of 2025 (source: BoE)
4.0%
average monthly mortgage rate for
a five-year fixed mortgage with a 75% LTV
in December 2025 (source: BoE)
3.4%
CPI inflation in December 2025
(source: Office for National Statistics (ONS))
Taylor Wimpey plc
Annual Report and Accounts 2025
30
Real wage growth increased by 0.5% year on year to October to December 2025
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total real average weekly earnings three-month average annual growth rates in Great Britain
Source: ONS
While mortgage rates have trended down from
the highs seen in 2022 and 2023, affordability
challenges remain for some customers,
particularly first time buyers, who generally require
larger LTV ratios that attract higher mortgage
interest charges. First time buyers are a vital
segment of our market, supporting new demand
and overall liquidity.
Overall mortgage availability remains supportive,
and rates are competitive. In 2025, the Financial
Conduct Authority and Prudential Regulation
Authority made changes to, and opened a
consultation on, proposals to improve mortgage
lending. These included clarifying flexibility within
the stress test and extending the quantity of
high loan-to-income lending which banks are
permitted to undertake.
Demand for mortgages ticked up through 2025,
with a total of c.770k mortgage approvals for
the year for house purchases compared with
c.758k for 2024 (source: BoE).
Further rate reductions should help support more
people in accessing the finance needed to buy
a property, which could stimulate market demand.
However, there will be a lag on our completions
given the time taken for sales in the order book
to be converted into completions.
Real wage growth outpacing
real house price growth is
beginning to repair affordability
A healthy level of real wage growth (growth in
excess of inflation) improves the affordability of
homes for our customers. Coupled with low
unemployment, this can lead to increased
consumer confidence that helps boost
demand for new homes.
According to the ONS, nominal annual growth
in regular earnings was 4.2% from October to
December 2025. This translated to annual growth
in real terms (adjusted for inflation) of 0.5%.
This compares to real house prices (house prices
adjusted for inflation) falling 2.0% year on year in
Q4 2025 (source: Nationwide). This increase in
real wages compared to real house prices
continues to help to repair affordability.
According to Nationwide, in Q4 2025 all buyers
house price to earnings ratio was 5.6, a slight
improvement from 5.8 in Q4 2024 and a
significant reduction from the peak of 6.9 in
Q2 2022. It is now below the 10-year average
of 6.1. However, there is wide regional variation,
with the North of England being the most
affordable region at 3.9 and London the least
affordable, with the highest ratio of 8.8.
UK unemployment was 5.2% in the three months
to December 2025. Though this reflects a rise
from 4.4% in the three months to December
2024, unemployment remains at reasonably
low levels in a historic context (source: ONS).
Our market environment continued
House prices in real terms (adjusted for inflation) fell by -2.0% year on year in Q4 2025
£100,000
£200,000
£300,000
£400,000
1987 Q4
1989 Q4
1991 Q4
1993 Q4
1995 Q4
1997 Q4
1999 Q4
2001 Q4
2003 Q4
2005 Q4
2007 Q4
2009 Q4
2011 Q4
2013 Q4
2015 Q4
2017 Q4
2019 Q4
2021 Q4
2023 Q4
2025 Q4
Real house price
UK house prices adjusted for inflation
Source: Nationwide
31
Strategic report
Directors’ report
Financial statements
Shareholder information
Monthly mortgage costs continue to be below monthly average rental cost for those
with a 75% LTV
£2,000
£1,500
£1,000
£500
£0
Dec 2015
Jun 2016
Dec 2016
Jun 2017
Dec 2017
Jun 2018
Dec 2018
Jun 2019
Dec 2019
Jun 2020
Dec 2020
Jun 2021
Dec 2021
Jun 2022
Dec 2022
Jun 2023
Dec 2023
Jun 2024
Dec 2024
Jun 2025
Dec 2025
Average UK rental value
Monthly mortgage 75% LTV
Monthly mortgage 95% LTV
Sources: Bank of England, Nationwide, HomeLet Rental Index
Our market environment continued
Second-hand
transactions normalising
According to His Majesty’s Revenue and Customs
(HMRC), provisional estimate, in the 12 months
to December 2025, UK residential property
transactions were 1.21 million, 10% higher
than the prior 12-month period (12 months to
December 2024: 1.10 million) and in line with
the 1.21 million per annum average recorded
between 2015 and 2019.
Normalised levels of transactions provide liquidity
to the housing market and this is supportive for
the new build sector.
In November 2025, Rightmove reported that
the number of homes available on the market
was at a decade-high level. This elevated level of
second-hand homes available for sales means
that customers have greater choice.
For Taylor Wimpey, house prices
remained broadly flat in 2025
Incentives remained an important element in
driving customer commitment throughout 2025.
We continued to experience weaker pricing in
the South of England, where affordability has
been most stretched, compared to the North,
where we have captured some price growth.
Rental costs continue to rise,
making home ownership
more attractive
Rental costs are another factor that influence
demand, particularly for first time buyers. For
those with larger deposits, the monthly cost of
servicing a mortgage remained cheaper than
an equivalent rental throughout 2025. Data from
HomeLet shows that, in December 2025, average
monthly rental costs were 2.6% higher than the
year before. For those with smaller deposits,
requiring higher LTV financing, average rental
costs continue to be more affordable.
This suggests that falling interest rates
should unlock additional demand.
+10%
year on year increase in property transactions in
the 12 months to December 2025 (source: HMRC)
Taylor Wimpey plc
Annual Report and Accounts 2025
32
calculate this to a stock-based approach.
This means that housing targets equate to
0.8% of housing stock, and that in areas where
affordability is particularly stretched there is an
uplift to this.
Using these calculations, the UK will require
planning approvals to be granted for c.370k
homes per year. Local Authorities are also
required to demonstrate a five-year housing
land supply, and if they cannot, there will be
presumption in favour of sustainable development
(providing certain sustainability criteria are met).
These reforms were positive; however, as we
expected, they will take time to feed through
to planning decisions and land availability.
Therefore, in 2025, planning approvals continued
to decline, with the number of new project
permissions at the lowest level on record in
Q3 2025. This also translated into a low overall
number of units approved, of c.229k plots
approved in Great Britain in Q4 2024 to Q3 2025,
compared to c.298k on average over the past
five years (source: Glenigan, HBF).
The planning outlook is the most positive it has
been since 2012. These revisions to the NPPF
are supportive of housing delivery, and the
implementation of this across all Local Authorities
remains key to delivering more homes. In terms of
Taylor Wimpey’s planning applications, we saw
some early progress in 2025, with an uptick in
planning decisions, particularly towards the end
of the year.
Population growth continues to underpin demand for housing
0
100
200
300
400
500
600
700
800
900
1,000
Growth in population UK (thousands)
Net additional dwellings England (thousands)
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
Source: ONS, MHCLG
Population growth and structural
undersupply supporting
underlying demand
With population growth continuing to outpace
growth in net additional dwellings, there continues
to be a recognised undersupply of homes in
the UK.
According to the Centre for Policy Studies (CPS),
when comparing the UK’s housing stock to similar
European countries, the UK has a shortage of
6.5 million homes. The CPS estimates that the
number of homes per capita in the UK is 446 per
1,000 people, compared to a weighted average
of similar European countries of 542 per 1,000
people. It also estimates that, in order to close the
gap by 2040, an additional 565k homes per year
would need to be built in the UK. This compares
to the Government target of 300k per annum and
the 209k net additional dwellings in England in the
financial year from 2024-25 (source: MHCLG).
6.5m
estimated shortage of homes
in the UK (source: CPS)
209k
net additional dwellings in England in the financial
year 2024-25 (source: Ministry of Housing,
Communities and Local Government (MHCLG))
NPPF and Government policy
A functioning planning system is key for the
homebuilding sector, supporting the availability
and visibility of land for future homebuilding.
The NPPF sets out the Government’s planning
policies. It was first published in 2012 and marked
a significant change for the sector, resulting in
greater land availability and a more predictable
planning system. Following its introduction,
planning approval units trended up. However,
the NPPF was revised in 2018, 2019, 2021 and
2023, and following those revisions, the number
of housing projects approved has trended down.
The current Government placed growth in the
centre of its manifesto and recognised the
economic benefit of homebuilding. It quickly
resolved to revise National Planning Policy
with the publication of the revised NPPF in
December 2024, which aimed to improve the
planning backdrop.
This included a return to mandatory housing
targets and simplifying the methodology to
Our market environment continued
33
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Shareholder information
Our market environment continued
NPPF timeline
2012
Original NPPF
published
• Consolidated
Planning Policy
Statements
and Guidance into
a single document
• Introduced the
presumption in
favour of sustainable
development
• Plan-led system, with
decision making in
accordance with the
development plan
2018
Full revision of
the NPPF
• Strengthened focus
on housing delivery
and maintaining a
five-year housing
land supply
• Introduced stronger
expectations around
design, quality and
placemaking
• Added environmental
protections, including
biodiversity and
climate change
2019
Updated to clarify
aspects of the
five-year housing
land supply and
housing delivery
• Introduced clearer
treatment of viability
and green belt
flexibility in some
circumstances
• Intended to unblock
stalled plan-making
and delivery
2021
Revised to focus
on design quality
and placemaking
• Stronger emphasis
on design codes
and beauty
• Greater weight to
local character
and community
engagement
• Clarifications on
housing need,
affordability and
First Homes
2023
Update following
Levelling Up and
Regeneration Bill
consultation
• Weakened elements of
housing delivery policy:
— Softer stance on delivery
tests and five-year supply,
with housing need figures
described as an “advisory
starting point”
— Increased flexibility for
Local Authorities to depart
from the standard method
• Reduced certainty on
housing delivery
2024
Publication
of revised NPPF
• Return to mandatory
housing targets
• Simplification of the
methodology to a
stock-based approach:
— Housing targets would
equate to 0.8% of
housing stock
— Additional uplift to
housing target in areas
where affordability is
particularly stretched
2025
Planning and
Infrastructure Act
in law and draft
revised NPPF
issued for
consultation
• A more rules-based
structure
• Clearer separation
between plan-
making policies and
national decision-
making policies
Once the NPPF changes are fully embedded
we expect quicker and more reliable planning
decisions and a better functioning land market.
Five-year housing land supply and emerging Local
Plans should deliver sustained higher numbers of
sites and support housing delivery. We expect the
planning environment to drive more smaller site
opportunities in the early stages of the new NPPF
as a way of delivering homes more quickly in
advance of new Local Plans. We expect more
larger site opportunities to come through in the
medium to long term as Local Authorities look
for anchors to their Local Plans.
In December 2025, MHCLG opened a
consultation to re-write the NPPF. This
would introduce separate plan-making and
decision-making policies and is designed to
speed up plan-making by reducing duplication
and departure from national policy.
In addition, the Planning and Infrastructure Act,
which became law on 18 December 2025,
provides a supportive framework for housing
and infrastructure delivery. In particular, the Act
introduces a national scheme of delegation,
setting out which planning applications should
be determined by officers rather than planning
committees, and this should streamline decision
making and support the delivery of planning
consents. The Act also limits the number of
judicial reviews permitted for major infrastructure
and housing projects, which should help to
reduce delays.
Taylor Wimpey plc
Annual Report and Accounts 2025
34
Build cost
Build costs are driven by several factors, chief
among these being the availability of labour and
materials. Industry volumes and sector profitability
play a large part in determining the supply and
demand characteristics that impact build cost
inflation or deflation.
In times of strong industry growth, house price
growth and tight labour and materials supply
can drive build cost inflation, while surplus
capacity, in times of downturn, can lead to lower
inflation or deflation. However, the movement in
labour and materials prices can often lag behind
changing market conditions. We experience
homebuilding-specific cost impacts as well as
some in relation to the wider construction industry.
For example, certain trades such as bricklayers
and carpenters are more focused on new build,
while other trades such as groundworkers can
have more of a crossover into commercial or
infrastructure projects.
In terms of materials, timber, steel, sand
and cement are also widely employed in
commercial and infrastructure projects.
Therefore, competing demands for labour
and materials (e.g. infrastructure projects
such as HS2, home refurbishment, DIY, etc.)
can also impact our market.
Additionally, underlying inflation in other
input costs such as energy and global
commodities can have a major bearing
on our cost environment.
Underlying build cost inflation on completions in
2025 was c.1.0% (2024: c.1.5%) and we exited
the year with underlying build cost inflation on
new tenders at c.1.5%.
We continue to expect low single digit build cost
inflation in 2026.
In coming years, expected increases in industry
output are likely to lead to pressure on labour
and materials.
We will continue to work with our supply chain
to identify opportunities for cost savings across
the business.
Industry regulation
In 2025, we continued to prepare for the
introduction of the Future Homes Standard (FHS),
which will see our homes become all-electric and
zero carbon ready. We are expecting the FHS
requirements to be published in 2026.
We have been preparing for the changes for
some time, with our first trial of zero carbon ready
homes in 2023. We have been working closely
with our industry partners and supply chain to
identify and develop solutions and specifications
which will support us in meeting the requirements
of the FHS.
We have a meaningful number of fully electric
homes already occupied, with customer feedback
actively informing our approach. As a result, we
are well positioned for the release of the FHS and
for making informed specification decisions.
Building Safety Levy
The Building Safety Levy aims to raise around
£3.4 billion over at least 10 years to contribute
towards remediation of fire safety issues.
In 2025, the Building Safety Levy legislation was
finalised with guidance published. Implementation
of the Levy was postponed from Autumn 2025 to
October 2026. Sites with building regulation initial
notice applications registered before that date
will have three years’ exemption from the Levy,
meaning the cash flow impact will mostly occur
after 2029.
We continue to mitigate and manage risk, insofar
as is possible, in our landbank and strategic
pipeline and in our approach to landbuying.
Nutrient Neutrality
In 2025, the HBF estimated that nutrient and
water neutrality issues are preventing the delivery
of more than 160k new homes, with a moratorium
on development in more than a quarter of Local
Authority areas.
To enable progress, developers and Local
Authorities have increasingly adopted strategic
mitigation measures, including wetland creation,
land-use change, and nutrient credit schemes
supported by Natural England.
The Planning and Infrastructure Act should help
support resolution of Nutrient Neutrality issues by
introducing Environmental Delivery Plans and the
Nature Restoration Fund. Environmental Delivery
Plans will not be produced for every catchment
area of Nutrient Neutrality, but where they are, the
homebuilder will pay the Nature Restoration Levy,
which will replace site by site mitigation measures.
Our market environment continued
35
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Financial statements
Shareholder information
Market trends, opportunities and risks
Key driver
Interest rates and mortgage availability
Employment, skills and labour availability
Link to Principal Risks
B: Mortgage availability and housing demand
C: Availability and costs of materials and subcontractors
Link to Principal Risks
C: Availability and costs of materials and subcontractors
D: Attract and retain high-calibre employees
Interest rates and mortgage availability are key factors determining housing affordability
and accessibility for our customers. The BoE is mandated by the Government to maintain
a 2% inflation target. Interest rates are the BoE’s main tool in managing economic demand to
meet the inflation target.
Mortgage providers use the Bank Rate as a base and charge an additional margin to their
customers, and often move ahead to factor in expectations of future interest rates.
The UK employment rate has implications for consumer confidence and our customers’ desire and
ability to buy homes. A healthy employment outlook is important for general consumer confidence,
the housing market and the wider economy. In previous cycles, higher unemployment has been
a factor in weaker demand for housing.
Labour is a key input into homebuilding and availability tends to tighten during times of strong
industry growth.
2025 backdrop
While inflation in 2025 continued to exceed the 2% target, the BoE made four 25 basis point cuts
to the base rate. We entered 2025 with a base rate of 4.75%, with cuts in February, May, August
and December to end the year at 3.75%, the lowest level since January 2023.
Overall mortgage rate stability and affordability continued to improve in 2025, and following the
February rate cut, mortgage rates trended down through the year.
In 2025, the Financial Conduct Authority and Prudential Regulation Authority made changes to,
and opened a consultation on, proposals to improve mortgage lending. These included clarifying
flexibility within the stress test and extending the quantity of high loan-to-income lending which
banks are permitted to undertake.
UK unemployment was 5.2% in the three months to December 2025. Though this reflects a rise
from 4.4% in the three months to December 2024, unemployment remains at relatively low levels in
a historic context (source: ONS).
According to the ONS, nominal annual growth in regular earnings was 4.2% from October to
December 2025. This translated to annual growth in real terms (adjusted for inflation) of 0.5%.
The trend of reducing job vacancy numbers from mid-2022 continued in the first half of the year.
In the second half they remained relatively stable. Vacancies were 8.3% lower year on year for
the period of October to December, at 736k in 2025 compared to 803k in 2024 (source: ONS).
With sector volumes remaining subdued in 2025, labour availability remained good.
Drivers,
short term
opportunities
and risks
Inflation ended 2025 at 3.4%, ahead of the BoE target of 2%.
Following the Government’s Budget on 26 November 2025, the OBR increased its expectations
for Consumer Prices Index (CPI) inflation to 2.5% in 2026.
Changes to lending rules could help customers to access mortgages, supporting demand.
Real wage growth has supported affordability repair. Against the peak in nominal house prices in
Q3 2022, real house prices (factoring in the impact of inflation) were c.15% lower as at Q4 2025
(source: Nationwide). This compares to real wage growth of c.4% over the same period (source: ONS).
With the sector entering a growth phase, there will be greater demand for labour and skills, which
may lead to labour cost inflation.
Drivers,
long term
opportunities
and risks
Further cuts are expected to the base rate in 2026, however, expectations remain that mortgage
rates will remain higher than those seen in the period between the Global Financial Crisis and the
COVID-19 pandemic.
The employment and wage outlook is key for customer confidence and their ability to transact.
Stability of both of these factors should support demand, assuming that other factors are supportive.
The Government is targeting 1.5 million new homes over this Parliament. If there is a significant
increase in homebuilding, this will raise demand for labour and materials in coming years.
One way that we are preparing for this is our investment in our timber frame factory, which
reduces the pressure for bricklayers.
We invest in skills to help us recruit, retain and develop talented people and to address current
and future skills gaps in our business and subcontractor base. We collaborate with our partners on
skills programmes.
In March 2025, the Government announced a skills and training package, to invest over £600 million
to train up to 60k new construction workers by 2029. This should help labour availability and
sector growth.
Taylor Wimpey plc
Annual Report and Accounts 2025
36
Key driver
Climate change
Land and planning
Link to Principal Risks
A: Government policies, regulations and planning
H: Natural resources and climate change
Link to Principal Risks
A: Government policies, regulations and planning
E: Land availability
The FHS England and Wales and the New Build Heat Standard Scotland outlines new
regulations aimed at making new homes more energy efficient and removing the use of
gas central heating systems. The new build sector will play a major role in the UK’s net zero agenda.
Land is the key component for a homebuilder, therefore the availability of land suitable for
development and the effectiveness of the planning system have a major effect on the medium to
long term development of the industry and the supply of homes.
2025 backdrop
Parts L, F, S and O changes to Building Regulations, which came into effect from 15 June 2023
following a one-year transition period, already deliver a 31% reduction in carbon emissions
compared with a 2013 baseline.
The aim of the FHS is to ensure that new homes are built to be highly energy efficient, using low
carbon heating solutions to achieve 75-80% lower carbon emissions, supporting the UK’s wider
net zero 2050 ambitions. We have been preparing for the changes for some time, and we
completed our first trial of zero carbon ready homes in 2023.
We are expecting the FHS requirements to be published in 2026.
Given our strong landbank, we remained selective and opportunistic in approving land in 2025 and
approved c.8k plots (2024: c.12k plots).
Changes to the NPPF which came into effect in December 2024 are supportive of improving land
supply and delivery of new homes. However, as we expected, they take time to feed through to
planning decisions and land availability and overall planning approvals in England remained at
a low level of c.210k plots for the 12 months to Q3 2025, compared to c.243k for the 12 months
to Q3 2024. In terms of Taylor Wimpey’s planning applications, we saw some early progress in
2025, with an uptick in planning decisions, particularly towards the end of the year.
Drivers,
short term
opportunities
and risks
The FHS marks a major change in the way we will build however, the specific requirements and
transitional period are yet to be confirmed.
The FHS has been well flagged and we started research and development early, with live site
trials in 2023, which gave us a good insight into the technologies and the build methodologies we
can use. We have a meaningful number of fully electric homes already occupied and have received
customer feedback which has been actively informing our preparations and decision making.
We have been factoring the cost of this regulation into our landbuying for some time.
Research by the HBF shows new homes are significantly more energy efficient than older homes,
leading to yearly energy cost savings for residents of, on average, £618. The report suggests that,
on average, most new homes emit 74% less CO
2
than older properties.
The planning outlook is the most positive it has been since 2012. Full implementation of the NPPF
should improve planning approvals granted and ease planning supply. We expect the planning
environment to drive more smaller site opportunities in the early stages of the new NPPF as a way
of delivering homes more quickly in advance of new Local Plans.
In December 2025, the Ministry of Housing, Communities and Local Government (MHCLG) opened
a consultation into further changes to the NPPF. These introduce separate plan-making and
decision-making policies and are designed to speed up plan-making by reducing duplication and
departure from national policy. If these changes are introduced we would expect the updated NPPF
to be in place in 2026.
Drivers,
long term
opportunities
and risks
According to the HBF Watt a Save report, over the past year only 5% of existing older properties
achieved an A or B Energy Performance Certificate rating. We see potential for a competitive
advantage for new, more energy-efficient homes.
Our future homes should benefit consumers who should not be exposed to the retrofit costs
owners of older homes may face. In addition, depending on changes to energy tariffs, our
customers could achieve meaningful savings in the cost of running their homes.
Customers who buy a new, energy efficient home, often qualify for a green mortgage available from
a range of mainstream lenders that offer preferential interest rates and usually include a cashback
style incentive. However, at present, these products offer only very minor savings for customers.
We continue to work closely with lenders to encourage them to reflect the lower running costs and
future proofing of fully electric homes within their proposition. Mortgage savings could make buying
new build homes more appealing when compared to second hand homes.
A combination of these factors may allow new homes to attract a future pricing advantage over
older stock.
Once the NPPF changes are fully embedded, we expect quicker and more reliable planning
decisions and a better functioning land market.
Five-year housing land supply and emerging Local Plans should deliver sustained higher numbers
of sites and support housing delivery. We expect more larger site opportunities to come through in
the medium to long term as Local Authorities look for anchors to their Local Plans.
These measures support greater availability of land and therefore land market stability and should
encourage increased build to meet unsatisfied demand.
Market trends, opportunities and risks continued
37
Strategic report
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Shareholder information
Performance and operational review
Optimising
performance
Our performance and operational review focuses on the UK
(unless stated otherwise) as the majority of metrics are not
comparable in our Spanish business. There is a short summary
of the Spanish business in the Group financial review.
Joint ventures are excluded from the operational review.
Highlights for 2025
Land and planning
c.77k
plots in landbank
(2024: c.79k)
71
new outlets opened in 2025
(2024: 55)
Employees
92%
employee engagement score
(2024: 93%)
11.9%
voluntary employee turnover
(2024: 12.1%)
Customers
5-star
customer satisfaction rating
(2024: 5-star)
4.96
out of six Construction Quality Review score
(2024: 4.93)
Taylor Wimpey plc
Annual Report and Accounts 2025
38
Performance and operational review continued
0.75
homes sold per outlet per week
(2024: 0.75)
£335k
average UK selling price
(2024: £319k)
39
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Optimising performance
2025 was another challenging year for the sector.
The first quarter of the year was strong reflecting
interest rate reductions and wage growth.
However, uncertainty ahead of the late Autumn
Budget impacted sales through the second half
of 2025 and our order book coming into 2026.
While overall affordability is slowly improving,
demand continues to be muted, particularly
in the South and among the important first time
buyer category, which is constraining overall
sector output.
Against that backdrop, UK home completions
excluding joint ventures were in the middle of
our guidance range at 10,614 (2024: 9,972).
We delivered 2,220 affordable homes excluding
joint ventures (2024: 2,178), equating to 21%
of total UK completions (2024: 22%).
UK average selling price on private completions
was £374k (2024: £356k), and the overall
average selling price was £335k (2024: £319k).
We ended the year with an order book valued
at £1,864 million (31 December 2024: £1,995
million), excluding joint ventures, which represents
6,832 homes (31 December 2024: 7,312 homes),
of which 2,902 are private (2024: 3,208) and
3,930 are affordable (2024: 4,104).
Incentives remained an important element in
driving customer commitment throughout 2025.
We continued to experience weaker pricing in the
South of England where affordability has been
most stretched, compared to the North where
we have captured some price growth. As a result,
overall underlying pricing remained resilient.
Pricing on bulk deals entered into in the second
half of the year was softer, reflecting decisive
action taken on certain London schemes,
resulting in pricing in the year end order book
being around 0.5% lower year on year.
In 2025, we made good progress recycling capital
into smaller sites, reducing the scale of the
landbank, increasing outlet numbers and
improving the distribution of our investments
across the country. We reduced WIP investment
in nine greater London apartment schemes from
£270 million to £200 million in the period and
are on track to release the remainder of this
investment over the medium term in addition
to a further £100 million of investment released
from other infrastructure heavy sites.
Our regional businesses continue to work hard to
drive value improvement and embed the efficiency
savings we have made over the past few years.
Low single digit build cost inflation continued to
negatively impact in 2025, but our supply chain
self-help initiatives and increased usage of our
new house type range are driving efficiencies,
resulting in the net build cost inflation of c.1%
in the year (2024: c.1.5%).
Land and planning
In October 2025, we outlined our approach to land
investment with our target to reduce landbank
years to between 4.5 and 5 years. Our medium
term plan will allow us to target increased volumes
with a slightly smaller landbank of between 63k
and70k plots which will increase asset efficiency.
As at 31 December 2025, our short term landbank
stood at c.77k plots (31 December 2024: c.79k
plots). Our strategic land pipeline was c.133k
potential plots (31 December 2024: c.136k
potential plots).
The average cost of land as a proportion of
average selling price within the short term owned
landbank remains low at 12.7% (2024: 12.9%).
The average selling price in the short term owned
landbank in 2025 increased by 0.9% to £347k
(2024: £344k).
As at 31 December 2025, we were building
on, or due to start in the first quarter of 2026,
on 98.7% of sites with implementable planning
(2024: 98.4%).
In 2025, we opened 71 outlets in the year
(2024: 55) and traded from an average of 208
outlets (2024: 216), ending the year with a total
of 219 outlets (31 December 2024: 213).
We continue to expect growth in average outlets
year on year, including in 2026 and beyond.
Early action delivering improved
planning outcomes
Our early action has resulted in an increase in
the pace of planning successes. We have
seen improved sentiment towards our planning
applications and have driven a significant increase
in applications and enjoyed a strong final quarter
with a marked increase in planning successes.
In terms of our overall applications, sentiment has
visibly improved with positive planning progress or
planning achieved on 71% of applications in 2025
compared to 58% in the prior year.
Performance and operational review continued
As outlined in our October 2025 Investor and
Analyst Update, alongside our plan to drive
outlet-led volume growth and increase our
margins, we are executing several actions to
improve capital efficiency. We have pursued a
proactive planning strategy since 2023, well
ahead of any changes to planning with increased
engagement with planning authorities and the
submission of a greater number of targeted,
high-quality planning applications. We currently
have c.32k plots (2024: c.27k plots) in the
planning system for first principle determination.
Since 2023, our focus has evolved to smaller
sites where we see the most opportunity and is
aligned with the emerging planning backdrop,
which requires Local Authorities to establish
a five-year housing land supply. We are also
rebalancing our landbank slightly with a greater
number of approvals in the North where
affordability is stronger.
This enables us to open outlets more quickly,
using less capital for a shorter time period,
compared to larger sites. In 2025 we approved
c.8k plots, at an average site size of 211 plots,
compared to c.12k plots at an average site size
of 224 plots in 2024.
Strategic land
Our success in developing our strategic pipeline
is a key strength and remains an important
component of our strategy. In total, 59% of our
short term landbank has originated from this
source (2024: 56%). In the year, 39% of our
completions were sourced from the strategic
pipeline (2024: 40%). During 2025, we converted
a further c.5k plots from the strategic pipeline to
the short term landbank (2024: c.6k plots).
Customers
We have continued to invest in our customer
offering. As previously reported, the means by
which the industry’s customer service ratings are
calculated has changed and now involves four
questions relating to quality and service from the
8-week survey and four questions on quality and
service from the 9-month survey. The current
basis for a five-star rating is 4.15. We are pleased
to have comfortably exceeded this and are
delivering a five-star performance with our score
of 4.24.
Build quality
We continue to see improvements in our build
quality as measured by the NHBC CQR score,
which measures build quality at key build stages.
In 2025, we scored an average of 4.96 (2024:
4.93) from a possible score of six. This compares
with an industry benchmark group average
score of 4.75.
We aim to maintain high standards by ensuring
our quality assurance processes are embedded at
every stage of the build. We clearly communicate
our quality standards to subcontractors and invest
in training, process improvements and regular
inspections throughout the build process to
ensure consistently high standards and to prevent
quality issues from occurring.
Placemaking
We aim to put people at the heart of our
developments, with a placemaking approach that
creates sustainable, connected neighbourhoods
that provide great places to live for our customers
and integrate well into surrounding communities.
Our Placemaking Charter is a new framework to
further embed strong placemaking standards
across our business based around five key
principles: Connected communities; Places where
life happens; Attractive and welcoming places;
Safe places; and Places designed with nature.
During 2025, we focused on training and
upskilling for our teams to enable them to
implement our Charter and conduct initial
design assessments effectively.
Cladding fire safety
The safety of our customers remains our highest
priority, and this principle has consistently guided
our approach. We have long maintained that
leaseholders should not bear the cost of fire safety
remediation, and our focus has always been on
ensuring that residents in Taylor Wimpey buildings
have a clear path to resolution.
Since 2017, following the Grenfell Tower tragedy,
we took early and proactive steps reviewing
all legacy and current buildings, prioritising
remediation works on those presenting the
greatest risk. As fire safety guidance has evolved,
we have continued to reassess our buildings.
4.5-5
target landbank years
c.8k
plots approved in 2025 (2024: c.12k)
Taylor Wimpey plc
Annual Report and Accounts 2025
40
Performance and operational review continued
During 2025, as part of our ongoing work to meet
the Government’s Remediation Action Plan
deadlines, we have continued to carry out
intrusive investigations and Fire Risk Appraisal
of External Walls (FRAEW) assessments across
our legacy buildings. These assessments and
increased engagement with chartered fire
engineers in the first half of the year led to a
reassessment of our risk exposure on building
remediation, including updated evaluation of
buildings that have not yet undergone intrusive
FRAEW assessments. As previously announced,
in the first half we increased our provision for
cladding fire safety remediation by £222.2 million
to reflect findings from updated fire risk
assessments and investigations. Approximately
two thirds of the increase was to remediate
historical building defects, relating to cavity
barriers behind brickwork and render, which were
not visible in earlier non-intrusive assessments.
In the second half of the year, we have continued
to make good progress with assessments, tenders
and works. Since June 2025, the provision has
increased by £3.6 million as a result of inflation,
legal fees and other minor differences taking
the total increase for 2025 to £225.8 million.
In addition, in the period there was £3.9 million
of unwind of the provision discounting.
The provision represents our current best estimate
to remediate our buildings. While no recoveries
are included in the provision values, we are
actively assessing and, where appropriate,
pursuing claims against those responsible for
poor design, workmanship, or material failures.
Our focus remains on doing the right thing for our
customers, completing these works as quickly
and efficiently as possible, without compromising
on quality or safety.
Employees
Health and safety
Health and safety remains our number one
priority and is covered in every Board, Group
Management Team (GMT) and regional
management team meeting across the business.
Our Annual Injury Incidence Rate (AIIR) for
reportable injuries per 100,000 employees and
contractors was 200 in 2025 (2024: 212).
While we are pleased with this small reduction,
we continue to focus on efforts to reduce the
number of injuries.
Our AIIR for major injuries per 100,000 employees
and contractors was 50 in 2025 (2024: 59).
Culture and people
We have a strong culture at Taylor Wimpey of
which we and our employees are proud. This is
demonstrated in our latest employee survey
with an overall employee engagement score of
92% (2024: 93%), with a 72% response rate
(2024: 73%).
We seek feedback from, and engagement with,
all employees. We have a comprehensive
programme of employee communication including
regular updates and forums with the Chief
Executive and a wide variety of senior
management and supported by a National
Employee Forum, Young Person’s Forum and
Local Employee Forums in our regional
businesses. Employees are encouraged to
provide feedback to, and ask questions of,
members of the Board and other senior
management directly.
During 2025, our voluntary employee turnover
rate reduced to 11.9% (2024: 12.1%).
Taylor Wimpey was once again recognised in the
NHBC Pride in the Job Awards, with 50 Quality
Awards (2024: 62), 12 Seal of Excellence Awards
(2024: 16), three Regional Awards (2024: two) and
the Supreme Award in the Large Builder category
for the second consecutive year.
Skills
During 2025, we directly employed, on average,
4,393 people across the UK (2024: 4,354) and
provided opportunities for, on average, a further
c.9.6k operatives (2024: c.9.4k) on our sites.
Supported by our central functions and shared
Group culture, our local management teams
understand their responsibilities in driving our
people agenda and maintaining our high retention
rates. This includes quarterly reviews and
development programmes for each of our
employees. They also focus on talent identification
and succession planning.
A key priority for our teams is identifying and
strengthening future skills gaps to drive
sustainable delivery.
c.4.4k
on average directly employed in UK
(2024: c.4.4k)
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Taylor Wimpey plc
Annual Report and Accounts 2025
42
Performance and operational review continued
We have invested in technology to aid our
training and development with our online learning
management system allowing us to rapidly
update and deploy training modules when
change is required.
We recognise that building the skills of our current
and future workforce is essential to address
current and potential future skills gaps in our
industry and subcontractor base. We work closely
with our partners, on our skills programmes to
identify and address gaps.
In recognition of this challenge our Chief
Executive, Jennie Daly, has joined other
construction industry leaders on the Government’s
Construction Skills Mission Board.
The Government announced the launch of the
Construction Skills Mission Board in early 2025
and it first met in June 2025. The Board is aiming
to recruit 100k additional construction workers by
the end of this parliament. Comprised of key
Government ministers and industry leaders, the
Construction Skills Mission Board will focus on
five areas: providing confidence for employers to
invest, creating new entry pathways, improving
training access, simplifying funding and ensuring
career reliability.
Equality, diversity and inclusion (ED&I)
We remain committed to creating a more diverse
workforce and will publish our fifth Diversity and
Inclusion Report in 2026. Our aim remains to
create a workplace where colleagues feel
championed and supported regardless of
their background and identity.
As at 31 December 2025, we employed c.4.4k
people of which c.2.9k (65.1%) were male and
c.1.5k (34.9%) were female (2024: c.4.3k
employed, 65.3% male/34.7% female).
Our Board was comprised of 5 males (55.6%)
and 4 females (44.4%), no change from 2024.
Our most senior executive committee the GMT
was comprised of 8 people, 6 males (75.0%)
and 2 females (25.0%) (2024: 6 males and
3 females, 66.7% males/33.3% females).
GMT and direct reports included 71 people,
52 males (73.2%) and 19 females (26.8%).
This compares to 72 people, 53 males (73.6%)
and 19 females (26.4%) in 2024.
Our UK employee base is not yet reflective of the
UK’s ethnic diversity and addressing this remains
a focus for the business. However, proportional
ethnic representation in our workforce increased
to 6.7% as at 31 December 2025 (2024: 5.5%).
At the same date, ethnic minority representation
in the GMT and direct reports was 5.6%
(2024: 6.9%) and was 3.6% in regional business
leadership roles (2024: 2.5%). Ethnic diversity for
graduates was 24.0% (2024: 28.6%) and for
management trainees and apprentices it was
14.3% (2024: 14.4%).
In line with the Gender Pay Gap regulations,
we calculated our 2025 gender pay gap based
on pay and bonus data at the ‘snapshot date’ of
5 April 2025 (paid over the preceding 12 months).
The calculations cover all staff employed by Taylor
Wimpey UK Limited as at 5 April 2025. This data
shows that our mean gender pay gap was 3% in
favour of men (2024: 8% in favour of men) and
Case study
Lee Dewing, Supreme Award Winner,
NHBC Pride in Job Awards
The Pride in the Job awards has been running for
45 years and is the most highly regarded competition
in our industry. The awards recognise exceptional
Site Managers who are driving the highest quality
standards in our industry. We congratulate our
50 Site Managers who achieved awards recognition.
Every award winning development is a testament
to the hard work, attention to detail, and passion
our site teams bring to each project.
We are very proud that Lee Dewing from our North
Yorkshire business, was awarded the NHBC Pride
in the Job Supreme Award, Large Builder category, for
his work at our Oaklands development in Kirklevington,
North Yorkshire – the second time he has won this
award. This is the highest recognition granted in the
national awards programme, with only one award
granted per builder category, making Lee’s win in the
Large Builder category an extraordinary accomplishment
and a moment of real pride for Taylor Wimpey.
This achievement speaks directly to our ongoing
commitment to build high quality homes for our
customers. An exceptional achievement for Lee and
his team, this award, together with our other winners,
reflects the standards we continuously strive for
across our business.
43
Strategic report
Directors’ report
Financial statements
Shareholder information
Performance and operational review continued
median pay gap was 0% (2024: 6% in favour
of men). Further details will be available in our
Diversity Report on our website.
Research and Development
We invest in research and product trials to help us
keep improving the homes and places we build
for customers, to align with changing regulation
and to benefit from technological development.
Our Director of Research and Technical Innovation
oversees our research strategy and chairs our
Innovation Group for New Ideas, Transformation
and Excellence (IGNITE), and Road to Net Zero
Carbon Working Group.
During 2025, we refreshed our research strategy,
incorporating learnings from recent large-scale
research projects such as our Future Homes
Trial at Sudbury. Our updated strategy includes
a focus on regulatory compliance, skills, supply
chain resilience, product innovation, efficiency and
risk mitigation. In 2025, we conducted a number
of research projects in particular, working closely
with our industry partners and supply chain to
identify and develop solutions and specifications
which may support us to meet the requirements
of the Future Homes Standard which is expected
in 2026.
In 2026, we will be running projects focusing on
home water efficiency and water management
on our developments; advancing training and
resources in relation to installation of low carbon
technologies; and a review of processes for
introducing new products, among other topics.
Closure of Competition and
Markets Authority (CMA) investigation
We welcomed the announcement from the
CMA on 30 October 2025 that it closed its
investigation into the conduct of seven
housebuilders including Taylor Wimpey
announced in February 2024, accepting
voluntary commitments from all parties involved.
Taylor Wimpey engaged constructively with
the CMA throughout its investigation and as
previously noted, the CMA did not make any
infringement finding against Taylor Wimpey or any
of the housebuilders subject to the investigation.
The voluntary commitments, which do not
constitute any admission of wrongdoing include:
(i) agreeing not to share certain categories
of information with other housebuilders;
(ii) supporting the Home Builders Federation
and Homes for Scotland to develop and publish
industry-wide guidance on information exchange;
and (iii) a combined financial contribution by the
seven housebuilders of £100 million to the
Government’s Affordable Homes Programme.
Taylor Wimpey’s share of the combined financial
contribution was a payment of £15.8 million,
which together with associated legal and
professional fees of the commitments resulted in
£18.0 million being recognised within exceptional
items in 2025.
Driving
performance
through key
metrics
This section includes the key performance
measures we use to assess our performance
against our strategic cornerstones. Group
financial performance is highly important to
our management teams, and we consider the
KPIs outlined on these pages alongside key
metrics in relation to our financial performance,
including but not limited to those outlined in
Group financial highlights on page 9.
Read more about
our medium term
targets on
page 14
Read more about
our approach to
remuneration on
pages 129 to 158
Land cost as % of average
selling price on approvals
% of completions
from strategically
sourced land
Landbank years
Construction Quality Review
(average score/6)
Objective
To maintain at current levels or
reduce our average land cost.
Definition
Cost of land as a percentage of
average selling price on approvals.
Why it is key to our strategy
Maintaining a sustainable land cost
percentage supports margin stability.
As we cycle through older land
with higher embedded build cost
inflation, over the medium term we
will deliver more completions from
our newer land which is entering
the landbank at higher margin.
This supports the delivery of our
medium term targets.
Objective
To run an efficient landbank being
mindful of the external environment
such as planning environment.
Definition
The number of years of land supply
in our short term landbank based
on current completion levels.
Why it is key to our strategy
We seek to use our high-quality
landbank more efficiently to deliver
growth, both in the number and
quality of homes built for a wider
range of customers.
Our medium term target is to reduce
landbank years to between 4.5 and
5 years, by increasing completion
volumes and slightly reducing
landbank size.
Objective
We aim to source more than
40% of our completions from
the strategic pipeline per annum
in the medium term.
Definition
Number of completions on land
which originally did not have a
residential planning permission
when we acquired a commercial
interest in it, expressed as a
percentage of total completions.
Why it is key to our strategy
The strategic pipeline enhances our
ability to increase the contribution
per legal completion because of the
inherent margin uplift from strategic
plots. It also allows us to take
a long term view of sites.
Objective
To achieve an average score of four
out of six across Taylor Wimpey.
Definition
The average score, out of six,
achieved during an in-depth annual
review of construction quality on
a site-specific basis.
Why it is key to our strategy
Right first time continues to
be a key priority within our
customer-focused approach.
Construction Quality Reviews
focus on construction quality and
understanding ‘why or how’ given
levels of quality have resulted.
Key performance indicators
20
25
20
24
2023
16.9%
17.0%
15.2%
16.9%
20
25
20
24
2023
c.7.2
c.7.8
c.7.7
c.7.2
20
25
20
24
2023
39%
40%
45%
39%
20
25
20
24
2023
4.96
4.93
4.89
4.96
Link to strategic cornerstone
Land
Link to Principal risks
A
Government policies,
regulations and planning
B
Mortgage availability and
housing demand
E
Land availability
Link to strategic cornerstone
Land
Link to Principal risks
A
Government policies,
regulations and planning
E
Land availability
Link to strategic cornerstone
Land
Link to Principal risks
A
Government policies,
regulations and planning
E
Land availability
Linked to remuneration:
Link to strategic cornerstone
Operational excellence
Link to Principal risks
A
Government policies,
regulations and planning
C
Availability and costs of materials
and subcontractors
D
Attract and retain
high-calibre employees
F
Quality and reputation
Medium term target
Taylor Wimpey plc
Annual Report and Accounts 2025
44
Linked to remuneration:
Link to strategic cornerstone
Sustainability
Link to Principal risks
C
Availability and costs of
materials and subcontractors
D
Attract and retain
high-calibre employees
F
Quality and reputation
Linked to remuneration:
Link to strategic cornerstone
Sustainability
Link to Principal risks
A
Government policies,
regulations and planning
F
Quality and reputation
G
Health, safety and environment
H
Natural resources and
climate change
Link to strategic cornerstone
Operational excellence
Link to Principal risks
D
Attract and retain
high-calibre employees
F
Quality and reputation
G
Health, safety and environment
I
IT environment and security
Link to strategic cornerstone
Operational excellence
Link to Principal risks
C
Availability and costs of
materials and subcontractors
D
Attract and retain
high-calibre employees
F
Quality and reputation
G
Health, safety and environment
Link to strategic cornerstone
Operational excellence
Link to Principal risks
C
Availability and costs of
materials and subcontractors
D
Attract and retain
high-calibre employees
F
Quality and reputation
Annual Injury
Incidence Rate
(per 100,000 employees
and contractors)
HBF customer satisfaction score
(revised methodology)
Employee engagement
(annual survey)
Reduction in operational
carbon emissions intensity
(measured at end of year)
Objective
We are committed to providing a
safe place in which our employees
and subcontractors can work and
our customers can live.
Definition
Reportable injuries and incidents
(meeting the HSE criteria), as
reported to the HSE, per 100,000
employees and contractors
over a 12-month period. For more
details on how this metric is
calculated refer to page 50 where
our detailed methodology and
criteria document is linked.
Why it is key to our strategy
Health and safety is our non-
negotiable top priority. As well as
having a moral duty to maintain
safety on site, accidents and
injuries can have a detrimental
impact on the business through
additional costs, delays and/or
reputational damage.
Objective
We aim to maintain a high level of
overall employee engagement.
Definition
Our employee engagement score
measures a range of factors in terms
of employees’ sense of belonging,
how proud they are to work for
Taylor Wimpey and their willingness
to go the extra mile for the business.
Why it is key to our strategy
As a key part of our employee
engagement strategy, the survey
provides an opportunity for
employees to provide feedback
on all aspects of working at
Taylor Wimpey. This leads to clear
action plans at both a national and
local level where improvements can
continue to be made. Ensuring that
the employee voice continues to be
heard remains an important part of
our overall engagement strategy.
Objective
We strive to improve this score and
to understand the reasons behind
(and underlying drivers) of this
customer feedback. We think about
how customers live in the homes
and places we build for longer
than the first few months after they
move in. Ensuring our customer
satisfaction remains high in the
months following completion is
important. We aim to be recognised
as a 5-star housebuilder.
Definition
This is the first year we are reporting
our customer service score under
the revised methodology.
Our HBF rating (as measured by
the National New Homes Survey
undertaken by the NHBC) is now
determined on the basis of 8-week
and 9-month customer service
scores, equally weighted, instead
of the 8-week ‘Would you
recommend?’ score. Our star status
is now derived from the aggregate
score relating to two questions on
quality and service contained in the
8-week survey and the same two
questions contained in the 9-month
survey. Each question will receive a
1-5 score, with 5 being most
favourable. The score for 2025
includes customers who legally
completed between 1 October 2024
and 30 September 2025 for the
8-week survey and customers
who legally completed between
1 February 2024 and 31 January
2025 for the 9-month survey. An
aggregate score of 4.15 will be the
measure of 5-star builder status as
at March 2026, which is the cut-off
date for determining the star status
for the following 12 months.
Why it is key to our strategy
Identifying and serving the needs
of our customers by delivering
a high-quality product and service
is key to our strategy.
Objective
Reduce operational carbon
emissions intensity by 36% by
2025 from a 2019 baseline.
Definition
Our science-based carbon reduction
target for scopes 1 and 2 emissions
intensity tracks tonnes of emissions
per 100 square metres of completed
build. The target has been validated
by the Science Based Targets
initiative.
Why it is key to our strategy
These are the emissions directly
from our own business operations
and as such are an indicator
of our own performance
and commitment.
Average reportable
items per inspection
Objective
Reduce defects found during
build stages.
Definition
The average number of defects
found per plot during National House
Building Council (NHBC) inspections
at key stages of the build.
Why it is key to our strategy
Reducing the number of defects
per plot is crucial to ensuring we
deliver consistently high-quality
homes for our customers,
whilst also minimising the cost
of rectifications.
20
25
20
24
2023
0.17
0.18
0.28
0.17
20
25
20
24
2023
200
212
151
200
20
25
20
24
2023
92%
93%
93%
92%
20
25
4.24
4.24
20
25
20
24
2023
44%
21%
5%
44%
Key performance indicators continued
A
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For further information please see page 50.
No prior year data
45
Strategic report
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Shareholder information
Our sustainability framework
46
Sustainability
framework
Sustainability is one of our strategic cornerstones
and key to achieving our purpose.
We have identified five sustainability priorities and established targets
and metrics for each to guide and drive performance improvements
that benefit the business and our stakeholders. Progress on our
priorities is summarised in this report with more detail in our
Sustainability Summary, available on our website.
Taylor Wimpey plc
Annual Report and Accounts 2025
Homes and places
Our people
Supply chain partners
Environmental impact
Responsible and resilient business
We plan, design, and build our homes and developments to enable our
customers to enjoy a good quality of life, adopt sustainable living habits,
and feel part of a community. We invest in improving our customer service
and work with partners to deliver quality homes and quality places that
enhance nature.
Read more on
pages 19 to 20, and 40 to 41
To be recognised as an employer of choice within our sector and beyond,
by fostering inclusive workplaces, empowering and enabling our people to
be the best they can be.
Read more on
pages 41 to 42
To engage our suppliers and subcontractors to contribute towards growth,
innovation, cost-efficiency, and sustainability, to support our delivery of
quality homes and places.
Read more on
pages 27 and 42
We support a more sustainable future for our customers, colleagues,
and communities by reducing and mitigating environmental impacts
from our business operations, our homes, and our supply chain.
Read more on
pages 47 to 65
We are a responsible business, guided by our values. We put in place
robust policies and governance processes and engage with our
stakeholders to help us deliver quality homes and places in a safe
and responsible way.
Read more on
pages 41, and 91 to 99
• Build quality
• Customer services
• Placemaking
• Nature
• Energy-efficient homes
• Social value
• Attraction
• Development and succession
• Reward and remuneration
• Equality, diversity and inclusion
• Engagement and retention
• Subcontractor engagement
• Supplier relationship management
• Future skills
• Sustainable procurement
• Modern slavery
• Climate change and carbon
• Waste reduction
• Water
• Health, safety and environment
• Corporate governance
• Internal audit and business continuity
• External report
• Digital innovation/cyber security
• Charitable endeavours
Priority issues
Priority issues
Priority issues
Priority issues
Priority issues
Our purpose
To build great
homes and
create thriving
communities
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47
Strategic report
Directors’ report
Financial statements
Shareholder information
Our
environmental
impact
Our commitment to the environment
How are we rated?
We participate in many investor and stakeholder
disclosure initiatives and benchmarks, sharing
details of our policies and performance on
environmental, social and governance issues.
Our latest ratings include:
• Carbon Disclosure Project (CDP) Climate
Change A (2024: A-) recognised as an A List
company, CDP Water B (2024: C), and CDP
Forests B for deforestation and forest risk
commodities (2024: B-)
• Constituent of the Dow Jones Sustainability
Europe Index (Standard & Poor’s Corporate
Sustainability Assessment) and included in the
S&P Sustainability Yearbook 2026
• Constituent of FTSE4Good, and recognised in
Sustainalytics 2025 ESG top rated companies,
with an ESG Risk Rating of Low
• Member of Next Generation, the sustainability
benchmark for UK housebuilders, with a silver
rating in 2024, the latest score available
• Included on the Financial Times Europe’s
Climate Leaders list 2025
Environmental impact is one of the five priorities in
our sustainability framework. We work to reduce
and mitigate environmental impacts from our
business operations, our homes, and our supply
chain and integrate sustainability into our
developments to benefit stakeholders and
reduce risks to our business.
We recognise the urgency of the climate crisis and
are committed to aligning our business with the
1.5°C pathway of the Paris Climate Agreement.
We have committed to reach net zero emissions
across our value chain by 2045, five years ahead
of the UK’s national target, with a near term target
of reducing absolute scope 1 and 2, and scope 3
emissions by 46.2% by 2030.
We have published our Net Zero Transition Plan
and four-stage roadmap, detailing the actions
we will take up to 2045. Focus areas include:
• Reducing carbon emissions from our homes
• Use of low carbon construction materials
and establishing decarbonisation plans
for key materials
• Transitioning to 100% renewable
electricity sourcing
• Reducing and replacing fossil fuels
• Decarbonising our fleet
We are also focused on reducing waste
and resource use, and supporting nature on
our developments.
We want to play our part in creating a greener,
healthier future for customers, colleagues and
communities and for future generations.
44%
reduction in operational
(scope 1 and 2) carbon
emissions intensity
since 2019
8,800
wildlife enhancements
installed on our sites
since 2021
21%
reduction in waste
intensity in 2025
since 2019
25%
reduction in water
intensity in 2025
since 2019
Our commitment to the environment continued
Taylor Wimpey plc
Annual Report and Accounts 2025
48
Our environment targets
Our environment strategy
Our Environment Strategy, Building a Better
World, was launched in 2021 with ambitious
targets for taking action to reduce our
environmental impact. Since then, we have made
strong progress in many areas including reducing
our carbon footprint and waste and embedding
nature initiatives into our developments to create
homes for wildlife. A summary is provided on
page 49.
Many of the targets in our strategy concluded in
2025 and we have taken the opportunity to review
and refresh our approach. In updating our targets,
we considered our business development,
regulatory shifts and movement in market
conditions since 2021, as well as improved
data, and sector-wide developments like the
Future Homes Delivery Plan.
Our new targets will drive our teams to further
reduce our climate, waste and water impacts
across our operations, homes, developments
and supply chain and to support nature. By
setting strategic, focused targets supported by
implementation work plans, we will provide clarity
and direction to our teams, empowering them to
deliver significant performance improvements.
We have also updated our environmental
governance to further strengthen oversight and
accountability, see page 52.
Our targets will be reviewed annually and updated
where needed to ensure they continue to drive
performance improvements against our priorities.
Topic
Environmental objectives
Targets from 2026
Nature
• Embed nature enhancements on our developments and
manage our upstream biodiversity impacts
•
Install a bird-nesting brick or box for every new house
we build
•
Create a hedgehog highway on every new development
•
100% of timber purchased through Group suppliers to
be FSC or PEFC certified
Waste
and water
• Reduce construction waste through smarter resource use
and efficient design
•
Reduce the use of water from our construction activities
and the homes we build
•
Reduce construction waste intensity by 2% in 2026
compared with 2025
•
Reduce operational water use intensity by 5% in 2026
compared with 2025
•
Design all new homes to use a maximum water
use of 100 litres per person per day
Climate
change
• Achieve our science-based carbon reduction targets and
progress towards our 2045 Net Zero Carbon commitment
•
Reduce our carbon footprint by constructing more homes
using timber frame
•
Design energy efficiency into the homes we build
•
Reduce our carbon footprint by transitioning to 100%
renewable electricity use
•
By 2045 we will reach net zero greenhouse gas emissions
on a 2019 base year, with near term target of reducing
absolute scope 1 and 2, and scope 3 emissions by 46.2%
by 2030
•
Increase timber frame usage to 30% of our completions
by 2030
•
Achieve an average Energy Performance Certificate (EPC)
rating of at least B for new homes
•
Purchase 100% of UK electricity from Renewable Energy
Guarantees of Origin (REGO) backed renewable sources
Our approach to reducing emissions encompasses our operations,
our homes in use and our supply chain. We have committed to
reaching net zero emissions ahead of the UK’s national target,
published our Net Zero Transition Plan, and our net zero target for
2045 has been validated by the Science Based Targets initiative.
We are reducing direct emissions from our operations by focusing
on purchasing electricity from sources backed by REGO certificates,
increasing our use of hydrotreated vegetable oil (HVO) to replace
diesel, rolling out hybrid generators and switching to electric vehicles
(EV) and hybrid vehicles in our fleet. To tackle scope 3 emissions, we
are working with suppliers to reduce embodied carbon in the materials
we use to construct our homes, and rolling out homes built to our
latest specification which is more carbon- and energy-efficient.
How have we performed?
•
44% reduction in operational (scope 1 and 2) carbon
emissions intensity (tonnes CO
2
e/100sqm) since 2019 and
29% since 2024
•
60% reduction in absolute emissions from our operations
(scope 1 and 2 market based) since 2019
• 88% electricity purchased from REGO-backed renewable
sources in 2025 (2024: 85%)
•
19% reduction in our scope 3 emissions intensity
(tonnes CO
2
e/100sqm) since 2019 and 8% since 2024
•
Average EPC rating of B for new homes built in 2025
•
18% of homes built using timber frame in 2025 (2024: 16%)
We aim to design and deliver beautiful spaces where wildlife and
nature can thrive and people can benefit from being closer to nature.
In England, new sites submitting their first planning application now
include a minimum biodiversity net gain (BNG) of at least 10% in line
with regulation. In addition, we integrate wildlife enhancements on
suitable sites to support native species. We helped to develop and
are a signatory of the Homes for Nature commitment set up by the
Future Homes Hub, committing to install a bird-nesting brick or
box for every home built, and hedgehog highways as standard on
new developments.
We are committed to responsible sourcing of timber in line with FSC
and PEFC standards to help protect biodiversity in our supply chain.
We partner with nature organisation Hedgehog Street, to help us
ensure our actions reflect best practice.
How have we performed?
•
Over 8,800 wildlife enhancements installed on our sites
since 2021 (2024: 5,500) including hedgehog highways,
bird-nesting bricks and boxes, bat boxes and bug hotels
•
Over 7,800 home welcome packs distributed to customers
since 2022, with wildflower seeds, bug hotels and other
products to help them create a more nature-friendly garden
We aim to reduce resource use and waste. During 2025, we have
continued to focus on improving waste segregation, site waste
audits, performance monitoring and designing out waste from our
processes, for example by specifying plasterboard sizes to reduce
waste from offcuts.
To engage our teams on the importance of reducing waste and
increasing recycling, waste is integrated into induction training and
regular communications for site teams. Each site has a waste score
which is updated quarterly and displayed on site, and we use internal
waste league tables to encourage action on waste across our
business units.
We are working to reduce water use from our operations,
protect water quality during construction and integrate measures
to manage surface water on developments such as sustainable
drainage systems.
How have we performed?
• 98.8%
A
waste sent to be diverted from landfill in 2025
(2024: 97.9%)
•
21% reduction in waste intensity in 2025 against our 2019
baseline, and 8% reduction compared with 2024
•
46% decrease in total waste volumes since 2019
•
Water consumption has reduced by 25% since 2019
(2024: 31%); however, water intensity (m
3
/100sqm) has
increased by 9% over the same period (2024: 7%)
Our commitment to the environment continued
Read more
Further information on progress
against our previous environmental
targets is included on
pages 62 and
63
and in our Sustainability Summary.
Reducing our environmental impact – progress so far
Climate change
Nature
Waste and water
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For further information please see page 50.
49
Strategic report
Directors’ report
Financial statements
Shareholder information
We are committed to transparent reporting on
environmental, social and governance (ESG) issues.
We publish a range of information and performance
data each year to enable investors and other
stakeholders to assess our strategy and progress.
We conduct materiality assessments to help
us identify and manage sustainability risks and
opportunities, impacts and dependencies for our
business and our stakeholders and to focus our
reporting on the topics that matter most.
External assurance
We are continually working to improve the quality
of our data and disclosures, to align with changing
regulation and to meet stakeholder expectations.
High-quality data also supports us to make
well-informed decisions. In addition to our own
internal processes and governance, we have
extended the number of ESG metrics which
undergo external assurance.
PricewaterhouseCoopers LLP (PwC) performed
external independent limited assurance
procedures over selected ESG performance
metrics for the year ended 31 December 2025,
in accordance with International Standard on
Assurance Engagements 3000 (Revised)
‘Assurance engagements other than audits or
reviews of historical financial information’ (ISAE
3000 (Revised)), issued by the International
Auditing and Assurance Standards Board and
‘Assurance Engagements on Greenhouse Gas
(GHG) Statements’ (ISAE 3410). A copy of PwC’s
report and our Methodology and Criteria
Document is available on our website at:
www.taylorwimpey.co.uk/corporate/investors/
ESG-assurance
. The ESG performance metrics
subject to limited assurance procedures are
marked with the
A
symbol.
Assured metrics
ESG performance metric
31 December 2025
Health and safety
Annual Injury Incidence Rate (per 100,000 employees
and contractors)
200
A
Diversity and inclusion
Female representation in GMT and direct reports (%)
27
A
Diversity and inclusion
Ethnic representation in GMT and direct reports (%)
5.6
A
Environmental impact
Scope 1 GHG emissions (tCO
2
e)
8,607
A
Environmental impact
Scope 2 location based GHG emissions (tCO
2
e)
4,487
A
Environmental impact
Scope 2 market based GHG emissions (tCO
2
e)
1,223
A
Environmental impact
Scope 1 and 2 market based GHG emissions (tCO
2
e)
9,829
A
Environmental impact
Scope 1 and 2 market based intensity (tCO
2
e per
100 sqm completed build)
0.90
A
Environmental impact
Scope 3 – Category 1 Purchased goods and
services (tCO
2
e)
861,435
A
Environmental impact
Scope 3 – Category 11 Use of Sold Goods (tCO
2
e)
707,025
A
Environmental impact
Carbon emissions of homes (kgCO
2
e per sqm
completed build per year)
11.42
A
Environmental impact
Construction waste intensity (tonnes per 100 sqm
completed build)
5.9
A
Environmental impact
% waste sent to be diverted from landfill
98.8
A
Environmental impact
Number of timber frame homes completed
1,947
A
EU Corporate Sustainability
Reporting Directive (CSRD)
Following publication of the EU Omnibus
package, our Spanish operations are no longer
expected to fall within the scope of the EU CSRD.
Materiality assessment
Our most recent materiality assessment in 2023
assessed the socio-economic, environmental and
governance issues that have most impact on our
business, and those where our business activities
have most impact on people or the environment.
A summary of the issues identified is included in
our supporting Sustainability Summary 2025,
available on our website.
We are preparing for the introduction of the UK
Sustainability Reporting Standards (UK SRS)
which are expected to introduce new
requirements for materiality assessment.
Taylor Wimpey plc
Annual Report and Accounts 2025
50
Reporting our progress
ESG reporting
and disclosure
Sustainability Summary 2025
Our Sustainability Summary 2025 includes detailed
ESG performance information and data.
Task Force on Climate-related
Financial Disclosures (TCFD)
recommendations
In preparing this statement, we have used the
TCFD framework, in line with the Financial
Conduct Authority requirements for UK
commercial companies with a listing of
equity shares (Listing Rule 6.6.8R).
We believe our disclosures are consistent with
the four recommendations and 11 recommended
disclosures set out in the ‘Recommendations of
the TCFD’ report, (see page 64 for more details).
We have taken into account the guidance in
the TCFD Annex, including the Guidance for
All Sectors and the Supplemental Guidance for
Non-Financial Groups in relation to the Materials
and Buildings Group.
In preparing our disclosures we also refer to the
Sustainability Accounting Standard Board (SASB)
standards, the outcomes of our materiality
assessment from 2023, our risk assessment
process, our climate scenario analysis and
stakeholder feedback.
Preparing for the UK SRS
In the near future, the UK is expected to introduce
Sustainability Reporting Standards (UK SRS),
which are based on the IFRS S1 and S2
standards issued by the International Sustainability
Standards Board.
Task Force on Climate-related Financial Disclosures
Climate risks
and opportunities
Climate change presents risks and opportunities for our business from
the physical impacts of global warming and the transition to a lower
carbon economy. This statement summarises our approach to identifying
and mitigating climate-related risks and capitalising on opportunities.
Where possible, we have aligned our climate risk
disclosures with the requirements of the IFRS S2
(Sustainability Disclosure Standard 2 – Climate-
related Disclosures) and Industry-based Guidance
on implementing Climate-related Disclosures.
During 2026, we will conduct a gap analysis and
review of data in preparation for the introduction of
the UK SRS.
Further information
Further information is available on our
website, including:
• Our Sustainability Summary which includes
a report against the criteria set by the SASB
Standard for the Home Builders sector
• A summary disclosure against the
recommendations of the Taskforce on
Nature-related Financial Disclosures
• Our Net Zero Transition Plan and four-stage
roadmap detailing the actions we will take up
to 2045 to reduce emissions in our operations,
the homes we build and our supply chain
51
Strategic report
Directors’ report
Financial statements
Shareholder information
Governance for climate change
Board level:
Our Board of Directors is responsible
for oversight of ESG, including climate-related
risks and opportunities, as stated in the schedule
of Matters Reserved for the Board. The Board
receives an ESG update at every meeting,
including a quarterly ESG scorecard with key
performance indicators and progress towards
climate targets. ESG competencies are indicated
in the Board skills matrix on page 91.
The Audit Committee supports the Board in
the management of risk, reviewing the Company’s
internal controls and risk management systems,
including in relation to our Principal Risk,
‘Natural resources and climate change’. The
Remuneration Committee reviews and approves
the inclusion of the carbon reduction performance
measures in our variable incentive schemes, and
associated targets. It ensures that targets are at
least as ambitious as, or exceed, the level of
decarbonisation required to meet the Company’s
existing public carbon reduction commitments.
Executive level:
Our Chief Executive has ultimate
responsibility for achieving our climate targets.
The Group Management Team (GMT) receives
a monthly update from the Group Communities
Director on sustainability, including climate.
The GMT’s role in our risk management process
is described on page 69.
Environmental Governance Group (EGG):
This Committee, established in 2025, replaces
our previous Legacy, Engagement and Action for
the Future Committee. It sets climate strategy,
oversees performance against our environmental
targets and reviews our Sustainability Risk
Register, see page 55. It is chaired by a member
of our GMT (currently Ian Drummond, Divisional
Chair for Scotland, North East and North
Yorkshire). Its members are appointed by the
GMT and include senior leaders from Group
functions (sustainability, finance, technical,
production, procurement, commercial, customer
and design) and representatives from our strategic
land division and regional businesses. The EGG
meets quarterly and is supported by three working
groups – Net Zero Carbon, Sustainable
Operations, and Homes for Nature – that oversee
the delivery plans for specific environmental
targets and report progress back to the EGG.
The Director of Sustainability is responsible for
monitoring climate-related issues, updating our
Climate Change and Sustainability Risk and
Opportunity Register, overseeing reporting and
disclosures on climate change and the assurance
of climate data. They report to our Group
Communities Director, who has responsibility
for the business’s approach to sustainability
(including our response to climate change and
carbon reduction), masterplanning and affordable
housing strategies, and reports directly to our
Chief Executive.
Task Force on Climate-related Financial Disclosures continued
Board of Directors
Audit
Committee
Remuneration
Committee
Oversight of the business
response to climate risks
and opportunities
Group
Management Team
Sets climate strategy,
analyses climate risk and
opportunity and oversees
performance against
environmental targets
Responsible for
achieving our
climate change
targets at the
local level
Reviews and approves
climate strategy, scrutinises
performance, and reviews
progress on climate
strategy and targets
Oversee delivery
of specific
environmental targets
Executive oversight
Environmental
Governance Group
Drive delivery of
targets at local level
Managing Directors
(operational
implementation)
Functional oversight
Cross-functional
working groups
Net Zero Carbon,
Sustainable Operations,
and Homes for Nature
Taylor Wimpey plc
Annual Report and Accounts 2025
52
Operational level:
The Managing Director in each
regional business has responsibility for achieving
our climate change targets in their business
unit. They are assisted by a nominated senior
Sustainability Sponsor and a Sustainability
Champion. Each regional business has annual
energy and carbon reduction targets up to 2027.
Management teams at all levels of the business
are updated on climate-related issues, including
carbon emissions and performance against
targets, by our sustainability team. This includes
quarterly reports, information provided through
functional monthly and quarterly meetings with
operational management across the business,
functional conferences, and updates directly
with regional business management teams.
The land we buy and develop is our most
important asset. Potential climate risks, including
flood risks, are one of the factors considered in
deciding which land we invest in. We have
a digital platform, LEADR (Land and Environment
Assessment of Development Risk), that supports
our teams to assess and manage climate,
sustainability and technical risks associated
with land during acquisition and construction.
During construction, climate risks are managed
through our environmental management system.
Incentivising performance
A scope 1 and 2 carbon reduction measure
was included in the incentive plans for Executive
Directors, senior management and regional
management in 2025 (Performance Share Plan
and medium term incentive plan), to support
progress on our carbon reduction targets.
Stakeholder engagement
Climate change mitigation and adaptation are
systemic issues that require a cross-industry
response. We engage with others in our industry
and supply chain through the Future Homes Hub
(FHH) and Supply Chain Sustainability School.
We are involved in a number of FHH working
groups, including those focused on grid capacity,
heat networks, sustainability metrics, overheating
risks, Home Energy Model (HEM), photovoltaics
(PVs) and ventilation. Our procurement team
works with our Group suppliers to identify and
mitigate climate-related risks in our supply chain.
Read more about our stakeholder engagement
on pages 84 to 86.
We participate in CDP Climate Change
and publish our submission on our website.
We received a score of A for 2025 (2024: A-).
We were included on the Financial Times
Europe’s Climate Leaders list 2025.
Strategy
Climate change presents both transition and
physical risks and opportunities for our business.
We have assessed these using short term (to the
end of 2025), medium term (to 2030) and long
term (beyond 2030) horizons, looking at their
potential impacts on our business and value
chain, strategy and financial position and planning.
We align with our strategic business planning
timelines, which use a five-year horizon.
Our approach is informed by climate scenario
analysis and our 2023 materiality assessment.
We also refer to industry-based guidance including
the SASB Standard for the Home Builders sector,
the industry-based Guidance on Implementing
IFRS S2 Volume 35 – Home Builders, the Next
Generation benchmark and the work of the FHH.
A summary of our materiality assessment and
our report against SASB are included in our
Sustainability Summary. We will be updating
our climate scenario analysis in 2026.
Climate-related risks and opportunities did
not significantly affect our business planning
or strategy in 2025 and we do not foresee a
significant impact in the next reporting period.
Changes to Government policy on planning,
housing and energy can significantly impact
our response to climate-related risks and
opportunities. We engage regularly with regional
and central Government on climate-related
issues, both directly and via the Home Builders
Federation (HBF). Read more about our
stakeholder engagement on pages 84 to 86.
We recognise that multiple and complex
interdependencies can influence climate risk
and make it difficult to assess potential future
impacts. We have not yet carried out a full review
of these interdependencies.
Climate scenario analysis
We have analysed the resilience of our business
model and strategy, taking into consideration
different climate-related scenarios. We conducted
climate scenario analysis in 2022, commissioning
external experts to conduct an assessment of
climate transition risks and opportunities across
short term (to 2025) and medium term (to 2030)
horizons. Risks were identified based on input
from internal and external experts and public
domain research.
The analysis:
• Considered our level of exposure to 15
transition risks in a low carbon economy where
temperature rises would be limited to 1.5°C
this century (in line with the Paris Agreement).
Assumptions were based on the IEA
(NZE2050), IPCC SSP1-2.6 and NGFS Net
Zero by 2050 Scenario. The scenario assumes
proactive and sustained action to reduce
carbon emissions, including public and private
investment into green technologies, mandatory
energy conservation building codes for existing
and new buildings, and significant growth in
renewable energy generation
Task Force on Climate-related Financial Disclosures continued
53
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Shareholder information
Task Force on Climate-related Financial Disclosures continued
• Modelled the physical impacts of climate
change on our assets and supply chain in
two temperature scenarios (1.5°C and 4°C
warming). Scenarios were based on the
Representative Concentration Pathways (RCP)
designed by the IPCC in their Fifth Assessment
Report (AR5), mapped to the IPPC AR6 report’s
Shared Social Economic Pathways (SSPs).
The climate risks were derived from sources
including Willis Towers Watson’s Global Peril
Diagnostic and Climate Diagnostic tools,
MunichRe hazard databases, SwissRe CatNet,
the Environment Agency and research findings
from UKCP18, CCRA, ABI and the IPCC
Impacts were estimated and likelihoods assessed
and aligned to our ERM (Enterprise Risk
Management) rating criteria. The process involved
subject matter experts from across our key
functions as well as members of our GMT. The
findings informed development of our Net Zero
Transition Plan (including the cost of investment
needed to achieve our targets) and have been
integrated into our risk assessment process.
In relation to transition risks, the analysis showed
a moderate to high level of residual risk exposure
in the short term, levelling out to moderate
exposure in the medium term. This reflects,
among other factors, the expected impact from
complying with the Future Homes Standard (FHS),
now expected in 2026, as well as from moving
to lower emission technologies and securing
sufficient electrical power supply. It also showed
minor to moderate opportunities from the
transition to a low carbon economy, including
market share gains as demand for low carbon
homes grows, and potential reputational benefits
with employees, investors and other stakeholders.
In relation to physical risks, it showed moderate
exposure to risks relating to windstorms, flooding
and drought, with the costs mitigated by building
to the standards of the day and by including
additional build costs within the assessment of
land values. A summary of the actions we are
taking to mitigate these risks is included on
pages 56 to 59.
Some climate risks and opportunities are
concentrated on particular aspects of our
business model or value chain, and this is
indicated in the tables on pages 56 to 59
and in metrics and targets on pages 60 to 61.
Our approach is also informed by preliminary
scenario analysis conducted with the Carbon
Trust in 2020. This reviewed three scenarios:
orderly transition (the goals of the Paris Agreement
are met); climate breakdown (warming of
4°C-6°C); and disorderly transition (the goals
of the Paris Agreement are not met in time
but climate breakdown is avoided).
Climate transition plan
Our Net Zero Transition Plan sets out how we
will respond to our identified climate risks and
opportunities and achieve our net zero target.
It includes our roadmap for key workstreams
such as the construction of lower carbon homes,
embodied carbon, transitioning to 100%
renewable electricity and decarbonising our
fleet. Our plan states our commitment to a just
transition. Read our Net Zero Transition Plan
at
www.taylorwimpey.co.uk/corporate/
sustainability/net-zero
Impact on financial statements
Climate-related risks and opportunities have
not significantly affected our financial position,
financial performance or cash flows during the
year and we do not foresee any significant
financial impact over the next annual reporting
period. We are reviewing how we can enhance
our reporting on the anticipated financial effects
of climate-related risks and opportunities in the
medium and long term.
Cost allocation and margin recognition
We include known costs associated with
regulation designed to affect the impact of
climate change, e.g. building regulations Part L
(conservation of fuel and power) and Part F
(ventilation), within the assessment of the value
of inventory charged to cost of sales, including
expected Future Homes Standard costs. Where
a forecast site margin is affected by a change
in estimated costs to complete, the impact is
recognised across all plots completed on that site
in the current and future years. See page 185 for
further details of the accounting policies in relation
to cost allocation and recognition.
Inventories
The carrying value of work in progress and land is
assessed via a net realisable value exercise and
any adjustments required are made within the
financial statements. In particular, in relation
to land and the possible impact from climate
change, the Group uses the latest environmental
reports to assess the impact from flooding on the
viability of the land. The accounting policy for
inventories is described on page 183 and the
outcome of the net realisable value exercise is
disclosed on page 196.
Goodwill and intangible assets
The Group does not have goodwill, or other
intangible assets, that would be subject to an
annual impairment assessment and thus the
impact of climate change on the future cash
flows required to perform this assessment is
not required.
Taylor Wimpey plc
Annual Report and Accounts 2025
54
Task Force on Climate-related Financial Disclosures continued
Going concern and viability
‘Natural resources and climate change’ is one of
the Group’s Principal Risks, but given the time
frame over which both going concern and viability
are considered (at least 12 months and five years,
respectively, from the date of signing the financial
statements) the future impact of climate change
on the operating costs of the business and its
supply chain, beyond those costs (such as
estimates for the Future Homes Standard) already
included within the Group’s forecasts, are not
considered financially material.
In addition, the Group’s viability assessment
considers a reduction in volumes which,
although not explicitly linked, could come about
through tighter planning requirements to address
the impact of climate change or through the
reduced availability or increased cost of materials
due to restrictions in the supply chain due to
climate change.
Sustainability linked loan
Our £600 million Revolving Credit Facility contains
sustainability linked performance targets for the
years 2023 to 2025 which adjusted the margin
up or down by a small amount. The revolving
credit facility will cease being considered as a
‘sustainability linked loan’ following delivery of
the final sustainability certificate for 2025.
Risk management
The identification, assessment, prioritisation,
mitigation and monitoring of climate-related risks
is integrated into our overall risk management
process, which is described on pages 68 to 70.
The Board has overall responsibility for risk
management, holds formal risk reviews at least
half-yearly and routinely considers risk at
each Board meeting as appropriate. Our risk
management approach involves a top-down
review of risks by senior management and the
Board, combined with a bottom-up review by
each individual function and regional business.
The Group’s Principal Risk ‘Natural resources and
climate change’ (see page 75) recognises the
increasing significance of the transition to a low
carbon economy for both our operations and the
world in which we live and conduct business.
This Principal Risk is monitored by the Audit
Committee and senior management, together
with all other Principal Risks, as detailed on pages
68 to 69, assessing their impact on the Group’s
strategic objectives and ensuring appropriate
mitigations are in place. The heat map on page 71
illustrates the relative inherent and residual
positioning of our Principal Risks (including Natural
resources and climate change) from an impact
and likelihood perspective. A risk scoring matrix is
used to ensure risks are evaluated on a consistent
basis, see page 69 for details.
The top-down review of key, Principal and
emerging risks by our GMT considers their relative
significance to the business. This process includes
climate-related risks and covers the whole of
Taylor Wimpey. Individual sustainability and
climate-related risks are considered through
functional and regional business risk registers,
including our Climate Change and Sustainability
Risk and Opportunity Register. Management
considers the impact they may have on the
Group’s strategy, looking at short, medium and in
particular longer term emerging risks which may
arise as the area continues to evolve. In identifying
risks, both internal and external factors are
considered, and they are assessed using
quantitative and qualitative (reputational, customer,
health and safety, employees, environmental,
operational, legal and regulatory, and IT) criteria.
Our Climate Change and Sustainability Risk and
Opportunity Register guides the climate change
adaptation of our business practices and the
homes we build. Our climate scenario analysis is
one of the inputs into the risk register. For each
risk and opportunity, the register identifies: risk
driver, description of risk, potential impact, time
frame, whether the risk or opportunity is direct
or indirect, likelihood and magnitude of impact.
This is a standing item for EGG meetings.
The EGG makes recommendations to the
GMT on how to mitigate, transfer, accept or
control climate-related risks.
We review scope 1 and 2 emissions for
each regional business quarterly to monitor
short term risks relating to performance against
climate targets.
In 2025, there were no significant changes to
the processes used to identify, assess, prioritise
and monitor risks compared with the prior
reporting period.
Read more about our risk management process on
pages 68 to 70
55
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Task Force on Climate-related Financial Disclosures continued
Policy and legal
Time frame analysed:
short term (to end of 2025), medium term (up to 2030)
Risk type:
transition (policy and legal)
Residual risks or opportunities (moderate to high):
see rows below
Description
Example risks/opportunities
Our mitigations
Residual risk after mitigation (1.5°C scenario unless stated)
R
Increasingly stringent
regulatory requirements
(e.g. the FHS).
Risk of delays and more expensive design
in order to deliver homes in accordance
with the FHS.
Potential for unexpected national policy
actions to impact the value of strategic
land pipeline.
•
Engage and consult regularly with Government to understand its priorities
•
Research and Development (R&D) programme and Net Zero Carbon Working
Group established to prepare our business for regulatory changes
•
Participate in the FHH to support the Future Homes Delivery Plan – a sector-wide
plan to embed key environmental issues into housebuilding
•
Engage with landowners to ensure that the cost of regulation/compliance with
latest standards is reflected in the assessment of land values
Short term moderate risk exposure and almost certain likelihood,
with the impact on the financial statements considered immaterial
as costs associated with the known regulatory changes have been
included in current costs and forecasts as appropriate.
Medium term moderate risk exposure, balanced likelihood, with any
financial impact considered within the future cost of land and, where
appropriate, sales price of new homes.
R
Increasingly stringent local
planning requirements
(e.g. in relation to flooding
and biodiversity) and potential
for variation in standards
between authorities.
Risk of delay and increased cost as local
councils introduce additional local planning
requirements or go beyond the
requirements of the FHS.
•
Engage with planning authorities to understand and integrate their requirements,
including participating in the development of strategic frameworks, Local Plans
and Neighbourhood Plans
•
Engage with landowners to ensure that the cost of planning compliance is
reflected in the assessment of land values
•
Our regional businesses receive guidance on biodiversity net gain, flooding and
other matters to address planning requirements
•
Engage with the FHH and Government to encourage a consistent approach for
the sector
Short term moderate risk exposure, likely, with impact on the
financial statements not considered material as risk impacts local
areas rather than nationwide.
Medium term moderate risk exposure, balanced likelihood,
with any financial impact considered within the future cost of land.
R
Climate change-related litigation
claims brought by stakeholders.
Risk of claims relating to our approach to
climate change adaptation, our disclosure
of climate-related material financial risks or
green marketing claims.
•
Disclose our climate change approach and performance and continually review
and improve our data
•
Require our agencies to have a review process in place to ensure compliance
with regulation and the Green Claims Code guidance issued by the UK’s
Competition and Markets Authority (CMA)
Short term moderate risk exposure, likelihood considered rare,
with impact on the financial statements considered immaterial as
we build to latest regulations.
Medium term moderate risk exposure, unlikely, with impact on the
financial statements considered immaterial as we comply with the
latest building regulations and any associated costs would be
embedded within the future cost of land.
Other residual risks or opportunities (currently identified as low):
•
Enhanced emissions reporting obligations
•
Potential future carbon pricing
•
Cost of purchasing emissions offsets
Our risks and opportunities
The table below summarises the risks and opportunities identified in our 2022 climate scenario analysis (see description on pages 53 to 54), primarily in relation to our UK operations. It summarises our mitigating actions and the impact and
likelihood of the more significant risks and opportunities that were identified. Residual risk after mitigation relates to a 1.5°C scenario unless stated. The impact and likelihood ranges and scores are based on ERM rating scales. We have listed
additional risks or opportunities that were identified but not currently considered significant.
Key
R
Risk
O
Opportunity
Taylor Wimpey plc
Annual Report and Accounts 2025
56
Task Force on Climate-related Financial Disclosures continued
Technology
Time frame analysed:
short term (to end of 2025), medium term (up to 2030)
Risk type:
transition (technology)
Residual risks or opportunities (moderate to high):
see rows below
Description
Example risks/opportunities
Our mitigations
Residual risk after mitigation (1.5°C scenario unless stated)
R
Power supply and infrastructure
– increasing focus on electricity
as an energy source for homes,
transport, machinery and
infrastructure as the economy
moves away from fossil fuels.
Potential risk of delays and costs due to
restrictions to capacity and distribution
of power across the electricity grid to
service new homes, construction sites
and other industry.
Risk of increased costs and delays
associated with needing to build or
upgrade primary substations.
•
Power supply and infrastructure integrated into site planning, accounting for
the shift to lower emission alternatives. Securing point of connection early to
reserve capacity
•
Engage with industry stakeholders and Government on national electricity grid
capacity and distribution and the exploration of smart networks as we move
towards electrification of homes
•
Exploring and implementing innovative energy approaches, including plot-based
energy storage and generation solutions and site wide network solutions
(e.g. community air source and ground source heat networks)
•
Communicate risk and mitigations to regional teams
Short term major risk exposure, almost certain likelihood. The
impact on the financial statements is not considered material as risk
considered to be localised rather than national.
Medium term major risk exposure, balanced likelihood, with impact
on financial statements mitigated through assessment of future land
purchases and planning requirements.
R
Substitution of existing
technologies with lower emission
alternatives (e.g. all-electric
homes and construction
equipment) to comply with the
FHS (England and Wales) or New
Build Heat Standard (Scotland)
and emissions reduction targets.
Risk of increased costs associated
with new technologies and potential
supply chain availability challenges.
Risk that current new technology solutions
quickly become outdated.
•
Ongoing R&D and supplier engagement programme to identify beneficial new
low carbon technology and test its performance against our quality, safety,
sustainability and technical standards
Short term moderate risk exposure, almost certain likelihood, with
the impact on financial statements considered immaterial as known
costs associated with regulatory change are included in current
costs and forecasts as appropriate.
Medium term moderate risk exposure, balanced likelihood, with
impact on financial statements considered immaterial where any
cost of change in regulation is included in the future cost of land or
passed on through house prices.
R
Skills and competencies shortages
impacting ability to install,
commission and maintain low
carbon technologies.
Risk of shortfall in supply of suitably
qualified professionals, particularly for
new low carbon technologies.
•
Mapped the expected skills profile for our business and subcontractor base and
are addressing potential skills and competence gaps through training,
recruitment and work with subcontractors
•
Worked with other housebuilders, the Construction Industry Training Board and
the HBF to create the Home Building Sector Skills Plan
Short term insignificant risk exposure, almost certain likelihood,
with impact on financial statements considered immaterial based on
timing of implementation of current regulations.
Medium term minor risk exposure, almost certain likelihood,
with impact on financial statements dependent on extent of
skills shortage.
Key
R
Risk
O
Opportunity
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Task Force on Climate-related Financial Disclosures continued
Market and reputation (stakeholder)
Time frame analysed:
short term (to end of 2025), medium term (up to 2030)
Risk type:
transition (market, reputation)
Opportunity type:
products, markets
Residual risks or opportunities (moderate to high):
see rows below
Description
Example risks/opportunities
Our mitigations
Residual risk after mitigation (1.5°C scenario unless stated)
O
Changing customer demands in
relation to low carbon homes as
sustainability awareness grows,
green mortgages evolve, and
existing building stock becomes
comparatively more expensive
to run.
Opportunity if more efficient and lower
emission homes become more attractive to
customers than second-hand market.
•
Conduct regular research to monitor and understand changing
customer attitudes to sustainability issues, including low carbon homes
(e.g. post-occupancy research on our Sudbury Future Homes Trial)
•
Engage customer, sales and marketing teams and marketing agencies to ensure
benefits of new low carbon homes are communicated effectively
•
Partner with peers through the FHH and engage with Government to ensure
benefits of low carbon homes are communicated and to support further
development of green mortgages
Short to medium term minor opportunity, considered likely,
with impact on financial statements potentially reflected in
increased revenue which could be material, but is not possible to
quantify reliably.
Medium term major opportunity and considered balanced
likelihood, with impact on financial statements potentially reflected in
increased revenue which could be material, but is not possible to
quantify reliably.
R
Changing customer demands in
relation to low carbon homes.
Risk that customers may resist installation
of new low carbon technologies or be
dissatisfied with their performance.
Risk of reputational damage if low carbon
homes are not delivered to customers in
line with changing expectations.
•
Communication with customers and training for customer, sales and
marketing teams to ensure customers are supported to use and understand
new technologies
•
‘Fabric-first’ approach to home energy efficiency to minimise complexity and
maintenance for customers where possible
•
Investment in research and product trials to ensure quality, performance and
ease of use (e.g. our Future Homes Trial)
Short term minor risk exposure, likely, with impact on financial
statements expected to be immaterial based on current
regulatory changes.
Medium term major risk exposure, unlikely, with impact on financial
statements dependent on extent to which customer demands
change, which is not possible to reliably estimate.
R
Increased cost of raw materials
as carbon pricing and investment
in low carbon plant, equipment
and facilities impact the cost
of materials such as steel
and cement.
Risk of increased development costs that
the business will need to absorb.
•
Monitoring carbon pricing developments and engaging with suppliers on impact
of carbon taxes and transition costs on raw material prices
•
Ongoing R&D programme looking at embodied carbon and resource-efficient
ways of working
•
Purchasing 100% REGO-backed electricity for all new sites, reducing carbon
taxation on energy consumption
Short term major exposure, balanced likelihood, with impact on
financial statements potentially material on existing developments.
Medium term major exposure, unlikely, with impact on financial
statements dependent on ability to include costs in land valuations
and/or pass on to customers via house prices.
R
Increased investor expectations
in relation to sustainability
performance and disclosure.
Risk that failing to meet changing investor
expectations affects revenue and
investment streams.
•
Sustainability (including climate change) is one of the four strategic cornerstones
of the business and embedded across the Group
•
Disclose climate strategy and ESG performance to investors through reporting,
benchmarks, meetings and investor roadshows
•
Regular materiality update to ensure we focus on priority ESG topics
Short term minor exposure, unlikely, and medium term major
exposure, unlikely. Impact on financial statements considered to
be indirect through potential reputational damage from poor
performance, which is not possible to quantify reliably.
O
Increased investor expectations
in relation to sustainability
performance and disclosure.
Opportunities to attract increased
investment by differentiating on
sustainability performance.
•
Sustainability (including climate change) is one of the four strategic cornerstones
of the business and embedded across the Group
•
Disclose climate strategy and ESG performance to investors through reporting,
benchmarks, meetings and investor roadshows, and climate data is subject to
external assurance
•
Regular materiality update to ensure we focus on priority ESG topics
Short term minor opportunity and likelihood considered balanced,
with medium term opportunity increasing to moderate and no
change to likelihood. Impact on financial statements would be the
opportunity of increased revenues through enhanced reputation in
the market, but this is not possible to quantify reliably.
Other residual risks or opportunities (currently identified as low):
•
Cost of capital impacted by sustainability performance
•
Risks and opportunities associated with growing interest and expectations in relation to climate change performance among employees
•
Risks and opportunities associated with meeting changing Local Authority and central Government expectations on climate change
Key
R
Risk
O
Opportunity
Taylor Wimpey plc
Annual Report and Accounts 2025
58
Task Force on Climate-related Financial Disclosures continued
Physical impacts
Time frame analysed:
medium term (up to 2030), long term (beyond 2030)
Risk type:
physical (acute and chronic)
Residual risks or opportunities (moderate to high):
see rows below
Description
Example risks/opportunities
Our mitigations
Residual risk after mitigation (1.5°C scenario unless stated)
R
Changing weather patterns and an
increase in number and severity of
extreme weather events including
issues relating to heat stress,
flooding, drought, wildfire,
windstorm and subsidence.
Risk of production delays or damage to
construction sites from storms, floods,
wildfires and droughts.
Risk of increased costs relating to adapting
sites and homes to the changing climate
(e.g. due to increased subsidence risk,
impact of heat and water stress, increased
dust levels due to drought).
Risk that climate change impacts sites
in the strategic land pipeline, which means
that the carrying value of land may need
to be written down and land costs
may increase.
Risk of supply chain disruption and
increased costs of materials due to
climate-related impacts e.g. flooding
of supplier facilities or shortages of
raw materials.
•
Flood risk considered from the start of the landbuying process and potential
flood risk identified as part of our site selection process. We do not buy land
unless we can mitigate flood risk. We use the Environment Agency’s flood
mapping tools and integrate sustainable drainage features on our sites to
manage water run-off and reduce flow rates. We are complying with the UK’s
updated National standards for sustainable drainage systems (SuDS).
•
Monitor weather conditions and have safety procedures in place to prevent
injuries or damage to our sites due to windstorms
•
Increasing the amount of sustainability-related data we collect from suppliers to
inform our approach to mitigating material supply risks
•
Environment Policy guides our approach to climate change mitigation and
adaptation risks and opportunities
•
Longer term impacts, including flooding, heat, drought and drought-related
subsidence, are best managed through updating industry-wide standards. We
continue to work collaboratively with organisations that set or influence standards
We did not categorise likelihood for physical risks, and the
assessment of the impact below shows an increasing exposure to
physical risks as temperatures rise.
•
Assets 1.5°C (medium and long term) – impact from
windstorm considered moderate
•
Assets 4°C (long term) – impact from flooding, drought and
windstorm moderate
•
Supply chain 1.5°C (medium and long term) – impact from
flooding and windstorm moderate
•
Supply chain 4°C (medium and long term) – impact from
flooding high, windstorm and drought moderate
Impact on financial statements to be mitigated through assessment
of land viability and associated cost of land during acquisition and
planning stages.
Other residual risks or opportunities (currently identified as low):
• Assets 1.5
o
C (2030 and beyond 2030) – flooding, heat stress, drought, wildfire and subsidence
• Assets 4
o
C (beyond 2030) – heat stress, wildfire and subsidence
• Supply chain 1.5
o
C (2030 and beyond 2030) – heat stress, drought and wildfire
• Supply chain 4
o
C (2030 and beyond 2030) – heat stress and wildfire
Key
R
Risk
O
Opportunity
59
Strategic report
Directors’ report
Financial statements
Shareholder information
Task Force on Climate-related Financial Disclosures continued
Metrics and targets
Our metrics and targets support the business to
manage and mitigate identified climate risks and
opportunities. Metrics and targets apply to the
whole Group unless stated.
Targets are reviewed and approved by our GMT
and Board of Directors, who also review progress
against targets quarterly. Several of our existing
environmental targets concluded in 2025 and we
have developed new targets to replace these.
Our new targets are listed on page 48.
Performance against our previous targets
is summarised on page 49.
We take a science-based approach to
carbon reduction:
•
Net zero:
Our net zero target for 2045 has
been validated by the Science Based Targets
initiative (SBTi), confirming that it is aligned
with the SBTi’s 1.5°C mitigation pathways
for reaching net zero by 2050 or sooner, the
most ambitious designation available through
the SBTi process and aligned with the Paris
Climate Agreement. The target was developed
with the Carbon Trust in line with the
requirements of the SBTi Corporate Net
Zero Standard, taking into account the
‘Metrics, Targets, and Transition Plans’
guidance issued by TCFD
1
. We have modelled
the costs and investment required to reach our
goals as well as our approach to neutralising
residual emissions
•
Near term target:
Our scope 1 and 2 reduction
target for 2025 was approved by the SBTi, and
is in line with a 1.5°C trajectory. It is based on
absolute emissions reduction and is expressed
as an intensity reduction to enable us to monitor
progress during different stages of the housing
cycle. Our near term target concluded in
2025 and we are in the process of setting
a new target which will be submitted in 2026
for validation by the SBTi
•
2030 targets:
Our 2030 targets for scope
1, 2 and 3 are aligned with the trajectory for
our net zero target for 2045, to ensure we
achieve the emissions reductions needed to
remain on track to meet our target
Assurance
Certain metrics were subject to external
independent limited assurance by
PricewaterhouseCoopers LLP (PwC),
as part of their assurance over selected
ESG performance metrics in the Annual
Report 2025. The relevant metrics are listed
on page 50. A copy of PwC’s report and our
Methodology Document is on our website at
www.taylorwimpey.co.uk/corporate/investors/
ESG-assurance
. The figures that have been
covered by this assurance process are indicated
in the table on page 50 by the
A
symbol.
Our baseline
Our 2019 carbon footprint (used as our baseline)
was calculated in accordance with the
measurement requirements of the Carbon Trust
Standard and in accordance with the principles
of the World Resources Institute (WRI)/World
Business Council for Sustainable Development
GHG Protocol.
Measurement approach,
inputs and assumptions
We measure progress against our targets
by calculating emissions, aligning with the
Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard (2004). We
use emission factors from the UK Government’s
GHG Conversion Factors for our corporate
reporting and data from Environmental Product
Declarations provided by our Group suppliers
where these are available and up to date.
The majority of our footprint is CO
2
but N
2
O
and CH
4
are included in conversion factors,
for example in relation to gas and diesel usage.
We currently exclude refrigerants (HFCs, PFCs,
SF
6
) from our footprint as these are not significant
for our business. More detail is included in the
footnotes on page 65. We also publish our
carbon reporting methodology on our website
at
www.taylorwimpey.co.uk/corporate/
sustainability
1
Sectoral guidance for housebuilding had not been published when our targets were developed.
Taylor Wimpey plc
Annual Report and Accounts 2025
60
Recognised as an
A list
company for our climate change
disclosures by CDP
We have achieved a place on the CDP A List for the
first time, recognising our leadership in environmental
transparency and climate action. We also improved
our CDP Forests and CDP Water Security scores to B,
reflecting progress across all environmental reporting
areas. This achievement reflects our ambition to reach
net-zero emissions by 2045, and commitment to keep
strengthening our governance, ethical practices and
sustainability reporting.
Task Force on Climate-related Financial Disclosures continued
TCFD cross-sector metrics
The TCFD ‘Metrics, Targets, and Transition
Plans’ guidance includes seven categories of
cross-sector metrics. These are:
•
Greenhouse gas emissions:
Absolute scope
1, 2 and 3 emissions and emissions intensity
reported on page 65
•
Transition risks:
Risks and mitigation actions
are explained on pages 56 to 58. Up to 100%
of business activities may be impacted by
transition risks in relation to changing regulatory
requirements, low carbon homes and
increasing pressure on power generation
and distribution during the net zero transition
(2024: up to 100%)
•
Physical risks:
Risks and mitigation actions
are explained on page 59. The proportion of
business activities vulnerable to physical risks
varies by impact. For example, any site could
be impacted by windstorms and we estimate
that c.38% of our plots are built in areas of high
water stress, based on the WRI Water Risk
Atlas tool, Aqueduct (2024: c.42%)
•
Climate-related opportunities:
Up to 100% of
our business activities and revenues are aligned
with climate-related opportunities in connection
with the delivery of low carbon, energy-efficient
homes (2024: up to 100%). Currently around
28% of our UK completions achieve an EPC A
rating, the most carbon efficient rating available,
and the average rating is EPC B
•
Capital deployment:
Not currently reported.
The nature of our business means that our
main investment is in land. Our business model
and financial forecasts take account of the
latest regulatory requirements, including those
directly linked to reducing the impact of climate
change, to satisfy these regulations. While we
do not separately disclose the quantum of this
investment, it is embedded within our build
costs and land values reported in the financial
statements and included within the annual
budget and forecasting process. We believe
this incorporates all known significant
investments relating to the potential impacts
of climate change
•
Internal carbon prices:
We do not currently
set an internal carbon price
•
Remuneration:
A carbon reduction measure is
included in incentive plans, see page 150
Industry-based metrics
We report against the criteria and metrics
established by the Sustainability Accounting
Standards Board (SASB) Standard for the Home
Builders sector (which are also included in the
industry-based Guidance on Implementing
IFRS S2) in our Sustainability Summary.
We are active participants in the FHH, an industry
collaboration working to deliver the targets
established in the Future Homes Delivery
Plan – the UK homebuilding sector’s climate
and environment plan. Our Chief Executive
Jennie Daly, will take over the role of Chair of
the FHH in June 2026, further strengthening
our commitment. We participate in the working
group established to develop a shared set of
metrics on climate change and sustainability
performance for the industry and will integrate
these into our reporting.
Use of carbon credits
We do not currently use carbon credits. Our
intention is to reduce emissions as much as
possible and by at least 90%, and only then
to neutralise remaining emissions through
the removal and storage of carbon from the
atmosphere, in line with SBTi requirements.
We view use of carbon credits as a last resort,
but recognise we are likely to need to use some
carbon removal offsets from 2045 for residual
value chain emissions. In our Net Zero Transition
Plan we have set out three principles to guide our
approach to neutralising emissions. We will use
standards such as the Verified Carbon Standard,
Gold Standard Verified Emissions Reduction,
Voluntary Offset Standard and Climate
Community and Biodiversity Standards.
61
Strategic report
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Financial statements
Shareholder information
Task Force on Climate-related Financial Disclosures continued
Progress against climate targets
Several of our climate targets concluded in 2025 and we have introduced a number of new targets. Our updated environmental targets are listed on page 48, and a full description of changes to our targets is
included in our Sustainability Summary.
Target
Progress in 2025
Link to TCFD
risks and opportunities
By 2045 we will reach net zero greenhouse gas emissions (scope 1, 2 and 3) across our value chain
on a 2019 base year (comprising at least a 90% reduction and neutralising residual emissions).
This target has been approved by the SBTi.
Our total footprint, including scope 3 emissions was 1,785,587 tCO
2
e
(2024: 1,813,618), a 1.5% reduction compared with 2024. This reflects the impact
of our carbon reduction measures on our scope 1 and 2 emissions. Absolute
emissions were 42.0% lower than in 2019, however, this also reflects the lower
number of completions in 2025 (around a third fewer than in 2019).
Policy and legal
Technology
Market and reputation
Physical
Operational emissions (scope 1 and 2)
36% reduction in operational carbon emissions intensity by 2025 from a 2019 baseline
(science-based target) and be net zero aligned by 2035.
The emissions reduction element of this target has been approved by the SBTi.
We have reduced operational carbon emissions intensity (scope 1 and 2) by 44.2%
against our baseline (2024: 21.1%) and absolute operational emissions by 60.0%
(2024: 47.1%), exceeding our target. This reflects fewer completions in 2025
compared with 2019 as well as the impact of carbon reduction measures such as
our sourcing of renewable electricity and a reduction in the use of diesel due to the
roll-out of hybrid generators and use of HVO. In 2025, this target was integrated
into our Performance Share Plan and medium term incentive plan.
This target concluded in 2025 and we are in the process of updating it.
Policy and legal
Technology
Market and reputation
Physical
32% reduction in operational energy intensity for UK building sites by 2025.
Operational energy use intensity on UK building sites has reduced by 5.4% against
our 2019 baseline and by 15.0% year on year. Despite making progress we did not
meet our target, which partly reflects the lower number of completions compared
with 2019 but continued energy use needed to run our sites. Absolute energy use
reduced from 98,197 MWh in 2019 to 64,994 MWh in 2025.
Policy and legal
Technology
Purchase 100% REGO-backed green electricity for all new sites.
We purchased 100% REGO-backed renewable electricity for new sites during
construction, and in offices, show homes, sales areas and plots before sale.
This equates to 88% of purchased electricity in 2025 (2024: 85%).
Policy and legal
Technology
Market and reputation
50% reduction in car and grey fleet emissions by 2025.
We have reduced car and grey fleet emissions by 26.8% since 2019 (2024: 28.2%).
While we are disappointed not to meet our target, we are pleased that 91% of
vehicles in our fleet are now electric or hybrid (2024: 88%).
Policy and legal
Technology
Taylor Wimpey plc
Annual Report and Accounts 2025
62
Target
Progress in 2025
Link to TCFD
risks and opportunities
Homes in use and supply chain emissions (scope 3)
Reduce scope 3 emissions by 52.8% per 100 m
2
of completed floor area by 2030 from a 2019 base
year (based on a reduction of 46.2% in absolute emissions against the base year).
This target has been approved by the SBTi.
We have reduced scope 3 carbon emissions intensity by 7.6% compared with
2024 and by 18.7% against our baseline. Absolute scope 3 emissions decreased
by 1.4% compared with 2024 and by 41.8% against our baseline. This reflects
improvements in the carbon efficiency of the homes we build, wider grid and supply
chain decarbonisation, improvements in our footprinting methodology, and the lower
number of completions in 2025 than in 2019.
Policy and legal
Technology
By 2030 all our homes will be zero carbon ready (becoming truly net zero on decarbonisation of the
electricity grid).
We are rolling out homes built to our new specification (in line with the updates
to Building Regulations Parts L and F in England) which are, on average, 31% more
carbon efficient in use compared to our previous specification, with similar reductions
in Scotland and Wales. We will move towards zero carbon ready homes in England
and Wales following the introduction of the Future Homes Standard (which is
now expected in 2026) and the New Build Heat Standard in Scotland (rolling out
from 2024).
Policy and legal
Technology
Market and reputation
Reduce emissions from customer homes in use by 75% by 2030.
The average dwelling emission rate (DER) for our homes was 11.42 kgCO
2
e per m
2
per year (2024: 13.22), a 25.8% reduction on 2019.
Policy and legal
Technology
Market and reputation
Reduce embodied carbon per home by 21% by 2030.
We are not currently able to report progress on this target. However, emissions from
scope 3 category 1 (purchased goods and services) have reduced by 38.5% since
2019 and by 2.6% since 2024.
Policy and legal
Technology
Adaptation and beyond our value chain
Make it easier for close to 40,000 customers to work from home and enable more sustainable transport
choices through 36,000 EV charging points and 3,000 additional bike stands by the mid 2020s.
We have installed over 13,200 EV charging points since 2021 (2024: 7,400) and
around 280 additional bike stands. Over 4,400 homes have included a study in their
floorplan since 2021. We were disappointed not to meet this target which was partly
due to lower annual completions compared with 2019 and a later than anticipated
start to the roll out of our updated standard house types and latest specification.
We also identified a need for clearer communication of targets to business unit
teams and this is a focus in our updated environment strategy.
Technology
Market and reputation
Cut our waste intensity by 15% by 2025 and use more recycled materials
1
.
Our waste intensity has reduced by 21.4% against our 2019 baseline, and 8.1%
compared with 2024. Total waste volumes decreased year on year and by 45.7%
against our baseline. The decrease year on year reflects work to engage our site
teams on waste and to encourage reuse of inert waste on site. The decrease since
2019 also reflects the lower number of completions in 2024 compared with our
baseline year. 98.8% of construction waste was sent to be diverted from landfill
(2024: 97.9%).
Policy and legal
Reduce operational mains water intensity by 10% from a 2019 baseline by 2025.
Water consumption has reduced by 24.7% since 2019 (2024: 31.1%); however,
water intensity has increased by 9.0% over the same period (2024: 6.6%). We believe
the increase in intensity reflects the lower number of completions relative to 2019.
While we completed fewer homes, we continued to use water for activities such as
dust suppression and in our offices and site compounds.
Physical
1
This target previously included a commitment to publish a ‘towards zero waste’ strategy for our sites by 2022. We met this part of the target in 2023 and therefore no longer report progress against it.
Task Force on Climate-related Financial Disclosures continued
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Strategic report
Directors’ report
Financial statements
Shareholder information
Task Force on Climate-related Financial Disclosures continued
Implementing the TCFD recommendations – progress to date
TCFD recommendation
TCFD recommended disclosures
Compliance position
Page reference
Governance
Disclose the organisation’s governance around climate-related risks and opportunities.
a. Describe the Board’s oversight of climate-related risks and opportunities.
52 to 53
b. Describe management’s role in assessing and managing climate-related risks and
opportunities.
52 to 53
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on
the organisation’s businesses, strategy, and financial planning where such information
is material.
c. Describe the climate-related risks and opportunities the organisation has identified over
the short, medium, and long term.
56 to 59
d. Describe the impact of climate-related risks and opportunities on the organisation’s
businesses, strategy, and financial planning.
54 to 55
e. Describe the resilience of the organisation’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario.
53 to 54
Risk management
Disclose how the organisation identifies, assesses, and manages climate-related risks.
f. Describe the organisation’s processes for identifying and assessing climate-related risks.
55
g. Describe the organisation’s processes for managing climate-related risks.
55 and 75
h. Describe how processes for identifying, assessing, and managing climate-related risks
are integrated into the organisation’s overall risk management.
55 and 75
Metrics and targets
Disclose the metrics and targets used to assess and manage relevant climate-related
risks and opportunities where such information is material.
i. Disclose the metrics used by the organisation to assess climate-related risks and
opportunities in line with its strategy and risk management process.
60 to 63, and 65
j. Disclose scope 1, scope 2, and, if appropriate, scope 3 greenhouse gas (GHG) emissions,
and the related risks.
65
k. Describe the targets used by the organisation to manage climate-related risks and
opportunities and performance against targets.
48, and 62 to 63
In addition to the disclosures included in this Annual Report, we use a number of supporting documents to provide further detail on our roadmaps, policies and performance and additional data. These include our
Sustainability Summary, Net Zero Transition Plan, Carbon Reporting Methodology and submission to CDP Climate which are all available on our website at
www.taylorwimpey.co.uk/corporate/sustainability
.
Disclosure consistent with the recommended disclosure
Disclosure consistent with the recommended disclosure, further improvement opportunities planned
Disclosure not consistent with the recommended disclosure
Taylor Wimpey plc
Annual Report and Accounts 2025
64
Task Force on Climate-related Financial Disclosures continued
Greenhouse gas emissions (tonnes of CO
2
e) and energy use (MWh)
2025
2024
2023
2022
2019
Scope 1 and 2 emissions
Scope 1 GHG emissions (tCO
2
e)
8,607
A
11,787
14,275
15,975
21,018
Scope 2 market based GHG emissions (tCO
2
e)
1,223
A
1,218
1,628
2,331
3,563
Scope 2 location based GHG emissions (tCO
2
e)
4,487
A
5,078
4,649
4,279
6,172
Scope 1 and 2 market based GHG emissions (tCO
2
e)
9,829
A
13,005
15,902
18,306
24,581
Scope 1 and 2 market based intensity (tCO
2
e per 100 sqm completed build)
0.90
A
1.27
1.53
1.37
1.62
Scope 3 emissions
Total scope 3 emissions** (tCO
2
e)
1,775,758
1,800,612
1,977,848
2,519,102
3,051,378
Scope 3 – Category 1 Purchased goods and services (tCO
2
e)
861,435
A
884,166
908,238
1,309,017
1,400,568
Scope 3 – Category 3 Fuel and energy-related activities (tCO
2
e)
3,453
4,440
4,591
4,886
5,677
Scope 3 – Category 4 Upstream transport and distribution (tCO
2
e)
55,195
53,434
46,064
34,351
62,283
Scope 3 – Category 5 Waste generated in operations (tCO
2
e)
12,013
11,911
18,294
15,089
17,550
Scope 3 – Category 6 Business travel (tCO
2
e)
1,988
2,023
2,087
1,553
2,647
Scope 3 – Category 7 Employee commuting (tCO
2
e)
121,196
57,312
52,521
74,348
121,655
Scope 3 – Category 11 Use of sold goods (tCO
2
e)
707,025
A
760,145
914,417
1,044,293
1,404,544
Scope 3 – Category 12 End of life treatment of sold products (tCO
2
e)
6,819
20,366
24,627
29,166
33,798
Scope 3 – Category 13 Downstream leased assets (tCO
2
e)
6,633
6,816
7,008
6,399
2,656
Emissions per 100 sqm completed homes (scope 1, 2 and 3) (tCO
2
e)
164
178
192
190
202
Energy use
Operational energy use (fuel and electricity consumption from sites, offices and fleet) (MWh)
74,188
79,904
85,741
92,312
116,207
Operational energy intensity (fuel and electricity consumption from sites, offices and fleet per 100 sqm completed homes)
6.81
7.83
8.27
6.90
7.64
Data is provided as tonnes of carbon dioxide equivalent (tCO
2
e) for all operations. Scopes 1 and 2 emissions are from our sites, offices,
show homes and sales areas, plots before sale, car fleet, logistics and manufacturing facilities and other infrastructure such as feeder
stations and streetlights where these have remained unadopted. We have used the GHG Protocol Corporate Accounting and Reporting
Standard (revised edition) for data gathered to fulfil our requirements under the Mandatory Carbon Reporting (MCR) requirements, and
emission factors from the Government’s GHG Conversion Factors for our corporate reporting. We use the market-based method of the
revised version of the GHG Protocol scope 2 Guidance for calculating our scope 2 emissions. We also disclose scope 2 emissions
calculated using the location-based method. This reporting meets the SECR (Streamlined Energy and Carbon Reporting) requirements.
We have reported on the emissions sources required under the Companies Act 2006 (Strategic Report and Directors’ Reports)
Regulations 2013 apart from the exclusions noted below. The reported sources fall within our Consolidated Financial Statements and
are for emissions over which we have financial control. We do not have responsibility for any emissions sources that are not included
in our consolidated statement. The following sources of emissions were excluded or part-excluded from this report:
1. Fugitive emissions (refrigerant gases): excluded on the basis of expected immateriality and difficulty in acquiring data.
2. Gas and electricity of part-exchange properties: excluded on the basis of immateriality due to very few completions of this type.
3. Certain emissions from District Heating Schemes: where we receive a rebate from customers prior to handover to the long
term operator.
4. Emissions from diesel use where we have a contractual agreement to use fuel that has been purchased by a groundworker.
Based on advice from the Carbon Trust we previously updated our methodology for calculating emissions in relation to some
joint ventures, joint projects and central London sites from 2023 onwards. Under the previous methodology the scope 1 and 2
market-based intensity figure for 2023 would be 1.56 tonnes CO
2
e/100 sqm completed build.
Biogenic emissions from our use of HVO are outside our scope 1, 2 and 3 footprint. These accounted for an additional 2,105.84 tCO
2
e
in 2025 (2024: 316.67 tCO
2
e).
**Scope 3 emissions
We report on nine of the 15 scope 3 categories identified in the GHG Protocol. The remaining six categories are not material to our
business. In 2022, we developed a more accurate methodology for measuring scope 3 supply chain emissions (Purchased Goods and
Services), using a combination of quantity-based data (drawing on data on the quantity of materials purchased and emissions data from
environmental product declarations) as well as spend data. Our previous methodology relied on spend data only. We have updated our
baseline 2019 scope 3 footprint using the new methodology. Our 2019 baseline using our previous scope 3 emissions methodology
was 3,869,583 tCO
2
e. In 2024, we also re-stated the 2023 scope 3 footprint to reflect a change to the methodology used to calculate
emissions from purchased goods and services. For more detail on our footprint and scope 3 methodology, see our Carbon Reporting
Methodology Statement at www.taylorwimpey.co.uk/corporate/sustainability.
Energy data and energy efficiency measures
The energy consumption figure in the table is a Group figure. 97.7% of this total energy consumption is from the UK and offshore areas
and 2.3% from Spain. 95.4% of total scope 1 and scope 2 emissions are from the UK and offshore areas and 4.6% from Spain.
During the last year, we have worked to reduce energy and emissions. Actions include: mandating hybrid generators on new sites;
increasing use of HVO; our purchase of green tariff electricity for sites during construction; using our Energy Dos and Don’ts Guide;
setting energy use targets for each regional business and integrating carbon reduction targets into our PSP and MTIP schemes; and
our Sustainability Champions working with Site Managers to increase the use of natural ventilation methods for drying out homes and
checking thermostats in show homes to ensure heating is only used when necessary.
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For further information please see page 50.
65
Strategic report
Directors’ report
Financial statements
Shareholder information
Non-financial and sustainability information statement
The following table constitutes our Non-Financial and Sustainability Information Statement in compliance with Sections 414CA and 414CB of the Companies Act 2006. The information listed is included by
cross-reference. Further non-financial Information is available in our Sustainability Summary and on our website.
Reporting requirement and
key performance information
Relevant policies
Read more on pages
Environmental matters
• 60% reduction in direct carbon emissions
since 2019 (2024: 47%)
• 98.8%
A
waste sent to be diverted from landfill
(2024: 97.9%)
• Over 8,800 wildlife enhancements installed on our
sites since 2021 (2024: 5,500)
• 1,947
A
number of timber frame homes completed
(2024: 1,624)
Environment Policy –
Outlines our commitment to the environment and incorporates our policies on
climate change, nature, waste and resources, sustainable timber and water
Health, Safety and Environmental (HSE) Policy –
Outlines our ongoing commitment to continual
improvement of our HSE performance
Supply Chain Policy –
Sets out our commitment to work with trusted partners and ensure our homes
are built using carefully sourced materials
More information can be found within:
Our environmental impact
47 to 49
TCFD
51 to 65
Related Principal Risks:
H: Natural resources and climate change
G: Health, safety and environment
Climate-related financial disclosures
• Reported against the recommendations of
the Task Force on Climate-related Financial
Disclosures (TCFD) and IFRS Sustainability
Disclosure Standard 2 criteria
Environment Policy
More information can be found within:
TCFD
51 to 65
Related Principal Risks:
H: Natural resources and climate change
Employees
• 27%
A
female representation in GMT and
direct reports (2024: 26%)
• 5.6%
A
ethnic representation in GMT and
direct reports (2024: 6.9%)
•
95% of employees feel proud to work for
Taylor Wimpey (2024: 96%)
•
95% of employees feel that they can be themselves
at work (2024: 96%)
Equality, Diversity and Inclusion Policy –
Outlines our commitment to create an inclusive workplace
and a workforce that reflects the diversity of the communities in which we operate
Grievance and Harassment Policy –
Ensures that any reports are investigated and
addressed appropriately
More information can be found within:
Performance and operational review
41 to 43
Stakeholder engagement and
Section 172 (1) statement
85, 88 and 89
Monitoring our culture
108 to 110
Related Principal Risks:
D: Attract and retain high-calibre employees
Human rights
• Continue to train employees to identify signs
of modern slavery and human trafficking for
which we operate a zero tolerance policy
Anti-Slavery, Human Trafficking and Human Rights Policy –
The measures we uphold to safeguard
against modern slavery
Supplier Code of Conduct –
The principles that our suppliers, contractors and business partners are
required to adhere to in ensuring human rights are respected and modern slavery is not taking place
Supply Chain Policy
More information can be found within:
Performance and operational review
41 to 43
Stakeholder engagement and
Section 172 (1) statement
85
Related Principal Risks:
A: Government policies, regulations and planning
C: Availability and costs of materials and subcontractors
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For further information please see page 50.
Taylor Wimpey plc
Annual Report and Accounts 2025
66
Non-financial and sustainability information statement continued
Reporting requirement and
key performance information
Relevant policies
Read more on pages
Social matters
• Contributed £359 million to communities via our
planning obligations (2024: £345 million)
• 21% of our UK completions were designated
affordable (2024: 22%)
Community Policy –
Outlines our commitment to be a responsible homebuilder, building homes
and communities that enhance the local area to meet the needs of new and existing residents
Donations Policy –
Our approach to making charitable donations and our policy not to make
political donations
Charity and Community Support Policy –
Our commitment to supporting charities and local
community groups in the areas we operate
More information can be found within:
Adding value
Performance and operational review
19 to 20
40 to 41
Stakeholder engagement and
Section 172 (1) statement
86, 88 and 89
Related Principal Risks:
B: Mortgage availability and housing demand
Anti-bribery and anti-corruption
• Continue to train our employees and raise
awareness of the procedures in place
•
Strict rules in relation to recording, giving or
receiving of gifts
Anti-Corruption Policy –
Our approach to combat risks of bribery, including the key principles
employees should follow
Fraud Mitigation and Response Policy –
This policy formalises the Company’s attitude to fraud
and its response to instances, or allegations, of fraud against its employees or third parties
Whistleblowing Protected Disclosure Policy –
Includes the procedures to be followed in making
a disclosure of wrongdoing within the Company or related to its business
More information can be found within:
Board leadership
99
Related Principal Risks:
A: Government policies, regulations and planning
Business model
•
10.7k new homes completed for customers
in the UK in 2025, including joint ventures
(2024: 10.1k)
•
Strong short term landbank of c.77k plots,
as at 31 December 2025 (2024: c.79k)
Community Policy
Environment Policy
Customer Service Policy –
Our approach and commitments to provide excellent customer service
More information can be found within:
Business model
21 to 28
Related Principal Risks:
E: Land availability
Non-financial KPIs
•
Achieved a HBF customer service score of 4.24 in
2025, equating to a five-star rating (2024: five-star)
• Our Annual Injury Incidence Rate (per 100,000
employees and contractors) was 200
A
in 2025
(2024: 212)
Customer Service Policy
Health Safety and Environmental Policy
Communications and Investor Relations Policy –
Sets out our commitment to conduct clear,
open and accurate communication with all of the Company’s stakeholder groups
More information can be found within:
Key performance indicators
44 to 45
Stakeholder engagement and
Section 172 (1) statement
84 to 86
Monitoring our culture
108 to 110
Related Principal Risks:
F: Quality and reputation
G: Health, safety and environment
A
This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For further information please see page 50.
67
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Directors’ report
Financial statements
Shareholder information
Governance
The Board has overall responsibility for risk
oversight, for maintaining a robust risk
management and internal control system,
and for determining the Group’s appetite and
tolerance for exposure to the Principal Risks
in the achievement of its strategy.
The Audit Committee supports the Board in
the management of risk and is responsible
for reviewing the effectiveness of the risk
management and internal control processes
during the year.
The Board recognises the importance of
identifying and actively monitoring our strategic,
reputational, financial and operational risks,
and other longer term threats, trends and
challenges facing the business.
The Board takes a proactive approach to the
management of these and regularly reviews
both internal and external factors to identify
and assess the impact on the business and,
in turn, identify the Principal Risks that would
impact delivery of the Group’s strategy.
The Chief Executive is primarily responsible for
the management of the risks, with the support of
the Group Management Team (GMT) and other
senior managers located in the business. In line
with the 2024 UK Corporate Governance Code,
the Board holds formal risk reviews, at least
half-yearly, and routinely considers risk at each
Board meeting as appropriate.
The formal assessment includes a robust
consideration of the Principal Risks and
uncertainties, to ensure they remain appropriate,
a review of the key risks identified by the business,
their risk profiles and mitigating factors, and an
annual review of the established risk appetite
and tolerance levels. At the Board meeting in
March 2026, the Board completed its annual
assessment of risks. This followed the Audit
Committee’s formal assessment of risks in
December 2025, which was supported by
a detailed risk assessment by the GMT and its
review of the effectiveness of internal controls in
mitigating the risks. The diagram on page 69
illustrates our approach to risk management.
Identification of risks
Our risk management and internal control
frameworks define the procedures to manage
and mitigate risks facing the business, rather than
eliminate risk altogether, and can only provide
reasonable and not absolute assurance against
material misstatement or loss.
Identifying risks is a continual process and risk
registers are maintained throughout the Group
at an individual site level, at the regional business
level and at Group-wide functional levels.
The regional business and functional registers are
reviewed twice a year as part of our formal risk
assessment process. In determining the risk,
consideration is given to both internal and
external factors.
The registers document both the inherent
risks before consideration of any mitigations
and residual risks after consideration of
effective mitigations.
A consolidated view of the risk environment,
including potential emerging risks, is discussed,
challenged and approved by the GMT and
Audit Committee before being presented to the
Board. This ensures all significant risks known
to the Group are being actively monitored and
appropriate mitigations/actions are in place to
ensure each risk falls within the tolerance set by
the Board.
Effectively
managing
our risks
As with any business,
Taylor Wimpey faces risks
and uncertainties in the
course of its operations.
It is only by timely
identification, effective
management and
monitoring of these
risks that we are able
to deliver our strategy.
Taylor Wimpey plc
Annual Report and Accounts 2025
68
Risk management
Risk management process
Our risk management approach involves
a top-down review of risks by senior
management and the Board, combined
with a bottom-up review by each Group
function and regional business.
Risk management continued
Board
• Sets the ‘tone from the top’,
defining our risk awareness,
culture and appetite and
overseeing processes designed
to ensure compliance
• Responsible for ensuring sound
risk management and internal
control systems are in place and
ongoing monitoring of suitability
and performance
• Approves the biannual risk
assessment of the key,
Principal and emerging risks
Audit Committee
• Reviews the risk management
and internal control systems
• Reviews and approves the
statements to be included in the
Annual Report and Accounts
concerning internal control and
risk management
• Reviews the biannual risk
assessment output and the key,
Principal and emerging risks
GMT
• At least biannually, reviews and
debates the consolidated risk
management output
• Reviews the key, Principal and
emerging risks
• Takes appropriate action to improve
the management of risk
Regional businesses and Group functions
• Prepares and reviews individual
regional business unit and Group
functions risk submissions, in
accordance with the risk
management process
• Ensures that appropriate resources
have been assigned to meet
the requirements, and that roles
and responsibilities have been
clearly defined
• Defines the level of residual risk
acceptable to the regional business
unit or Group function
• Ensures that appropriate monitoring
is in place to provide an early
warning mechanism for increasing
risk levels
• Ensures that appropriate action
plans are defined and reviewed to
reduce risk to the target levels
Evaluation of risks
A risk scoring matrix is used to ensure risks are
evaluated on a consistent basis. Our matrix
considers likelihood based on probability of
occurrence and impact based on financial,
reputational, customer, health and safety,
employee, environmental, operational, legal and
regulatory and IT perspectives, to help determine
those risks that are considered to be key in
delivering our strategy. Key risks are defined as
those with a residual score equal to or greater
than 12, and these are reviewed and monitored
by the Board as part of our biannual risk
assessment process.
Each risk is evaluated at the inherent and residual
levels, with consideration given to the target risk
based on our risk appetite and tolerance levels.
All identified risks are aligned to our Principal Risks
to help validate the continuance of such, or the
identification of potential new Principal Risks.
Report
Monitor
Mitigate
Assess
Identify
Top-down
Bottom-up
69
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Shareholder information
Risk management continued
Management of risks
Ownership and management of the key, Principal
and emerging risks is assigned to members of
the GMT or senior management as appropriate.
They are responsible for reviewing the operating
effectiveness of the internal control systems,
for considering and implementing risk mitigation
plans, and for the ongoing review and monitoring
of the identified risk. This includes the monitoring
of progress against agreed key performance
indicators (KPIs) as an integral part of the business
process and core activities.
Risk appetite and tolerance
The risk appetite and tolerance levels for the
Group are set by the Board. In setting these,
the Board has considered the expectations of
its shareholders and other stakeholders and
recognises the distinction between those risks
we can actively manage (for example, around our
landbank) and those against which the Group
would need to be responsive as and when
they became known (for example, transitional
arrangements for changes to building regulations).
As part of the risk management process, the risk
appetite and tolerance levels were reviewed and
approved by the Board in December 2025 to
ensure they were still appropriate in the current
operating climate. The conclusion was reached
that no changes were required and that they
represented an appropriate level of risk
acceptance for the Group.
Approved risk appetite levels for each of our
Principal Risks are detailed in the Principal Risk
tables on pages 72 to 76. The residual risk
ratings of all our Principal Risks continue to
be within their respective established risk
tolerance levels.
Emerging risks
Emerging risks are defined as those where
the extent and implications are not yet fully
understood, with consideration given to the
potential time frame of occurrence and velocity
of impact that these could have on the Group.
As part of our risk management process, these
are identified, monitored and reviewed on an
ongoing basis and discussed with and agreed
by the Board.
Our emerging risks are grouped into the
categories listed in the table below, which also
contains some narrative description against
each category indicating example focus areas
that the identified emerging risks fall into.
Specific risk areas other
than Principal Risks
The Group considers other specific risk areas,
recognising the increasing complexity of the
industry in which it operates, which are
in addition to its identified Principal Risks.
We continue to monitor and mitigate the impacts
on our supply chain and labour force and the
overall economic market impacting mortgage
availability and demand.
Housing and fire safety still remain high on
the agendas of the Government and the main
political parties, with the sector continuing to
face scrutiny and pressure from social media and
campaign groups, together with greater oversight
from the Government through a single New
Homes Ombudsman. We endeavour to deliver
both the letter and the spirit of regulations and
maintain this same ethos in our relationships
with our customers.
Emerging risks
Category
Example focus area
Environmental/
climate
Unpredictable weather
patterns
Operational/build
Adaptation of building
methodologies
Political/economic
Geopolitical uncertainty
Social
Customer demographics
and preferences
Governmental
Changing Government
policies
Taylor Wimpey plc
Annual Report and Accounts 2025
70
Provision 29 of the
UK Corporate Governance
Code 2024
A change to Provision 29 was introduced as part of
the UK Corporate Governance Code 2024, which
comes into effect for the Group’s 2026 Annual
Report and Accounts. The change introduced
a requirement for Boards to monitor and review
all material controls across financial, operating,
compliance and reporting, and to make a
declaration on their effectiveness in the Annual
Report or to disclose any material control failures
at the balance sheet date, together with plans
for remediation.
When the initial BEIS (Business, Energy and
Industrial Strategy) consultation was issued, the
Group commenced a project, supported by a
strong governance process, that has enabled
it to determine its material controls methodically
and precisely. The process has involved extensive
engagement, discussion and challenge across the
Group, including regional businesses and central
functions. The project steering committee used
the output of the engagements to arrive at the
proposed material controls covering the areas
noted above and presented them to the Audit
Committee for their review and consideration.
During the second half of 2025, a dry run
assessment was carried out to test the
effectiveness of the identified material controls,
with the outcomes and learnings incorporated,
where relevant, into the material control framework.
In addition to the outcome of the dry run
assessment, a test plan for 2026 was also
presented to the Audit Committee during 2025.
Through 2026, the agreed testing regime for the
material controls will be implemented. Alongside
this, periodic reporting will be made to the Board
outlining overall status on the effectiveness of the
material controls at that time. These processes
will provide ongoing visibility of the effectiveness of
the Group’s material controls and will facilitate the
Board in making the declaration of effectiveness
statement at the end of the year.
Principal Risks overview
The table to the right summarises the Group’s
Principal Risks and uncertainties, showing how
each links to our corporate values, strategic
cornerstones and our sustainability priorities,
which are detailed on page 46. Control of
each of these Principal Risks is critical to the
ongoing success of the business. As such, the
management of them is primarily the responsibility
of the Chief Executive and the GMT, together with
the roles noted in the Principal Risks tables on
pages 72 to 76.
During the year, two of our Principal Risks saw
increases in their inherent and residual profiles.
The increase in the ‘Government policies,
regulations and planning’ Principal Risk was
driven by a combination of further Future Homes
Standard announcements and the impact of
the Building Safety Regulator. The increase in the
‘Natural resources and climate change’ Principal
Risk was driven by matters arising within the
environmental space, for example increasing
wastewater capacity issues.
The Board has finalised its assessment of these
risks and of any changes to the risk profile during
the year.
Principal Risks heat map
The heat map opposite illustrates the
relative inherent and residual positioning
of our Principal Risks from an impact
and likelihood perspective. Further
information on our Principal Risks is
detailed in the Principal Risk tables
on pages 72 to 76.
Key
Inherent
Residual
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to our strategic
cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to risk change
Increased risk
No change
Decreased risk
Key to sustainability
priorities
Homes and places
Our people
Supply chain partners
Environmental impact
Responsible and
resilient business
Category
Risk change in year
Our values
Strategic
cornerstones
Sustainability
priorities
Inherent
risk change
in year
Residual
risk change
in year
A
Government policies, regulations and planning
B
Mortgage availability and housing demand
C
Availability and costs of materials and subcontractors
D
Attract and retain high-calibre employees
E
Land availability
F
Quality and reputation
G
Health, safety and environment
H
Natural resources and climate change
I
IT environment and security
Low
Likelihood
High
Low
Impact
High
C
F
I
Principal Risks and uncertainties
B
G
A
H
D
C
H
A
B
I
D
F
E
E
G
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Strategic report
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Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
A
Government policies, regulations and planning
Description
The industry in which we operate is becoming
increasingly regulated. Failure to adhere to
Government regulations could impact our
operational performance and our ability to
meet our strategic objectives.
Changes to the planning system or planning
delays could result in missed opportunities to
optimise our landbank, affecting profitability
and delivery of new homes.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low
Link to values
Link to strategic
cornerstones
Key mitigations
• Research conducted to update technical
specification of our standard house type range, in
preparation for the Future Homes Standard (FHS),
including a trial of five FHS-compliant plots
• Consultation with Government agencies
• Cladding fire safety remediation and signing of
the Developer Remediation Contracts in England
and Wales
• Engagement with national and local Government
• Working with the Home Builders Federation (HBF),
the Building Safety Regulator and other stakeholders
• Member of the Future Homes Hub
Example risk indicators
• New Government
regulations (e.g. around
planning and climate)
• Delays in planning
• Sentiment towards the
industry (e.g. cladding fire
safety remediation)
Opportunities
• To build enhanced
collaborative networks
with stakeholders
and peers, to monitor
the implications of
regulatory change
• Lead the business in
addressing pressing
environmental issues,
including reducing our
carbon footprint and
targeting biodiversity
Link to sustainability
priorities
Environmental
impact
Responsible and
resilient business
Accountability
• Group Technical Director
• Director of Planning
• Regional Managing
Directors
• Group Cladding Director
B
Mortgage availability and housing demand
Description
A decline in the economic environment,
driven by sustained growth in interest rates,
increased cost of living, low wage inflation
or increasing levels of unemployment, could
result in tightened mortgage availability and
challenge mortgage affordability for our
customers, resulting in a direct impact on
our volume targets.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low
Link to values
Link to strategic
cornerstones
Key mitigations
• Increase outlets to provide greater customer
choice and flexibility to respond quickly to
changing market conditions
• Review of pricing and incentives offered
• Monitor external market data (e.g. HBF and
mortgage lenders)
• Strong relationships with mainstream lenders
• Work with financial services industry to ensure
customers receive appropriate advice on
mortgage products
Example risk indicators
• Interest rate increases
• Levels of unemployment
• Volume of enquiries/people
visiting our developments
• UK household spending/
levels of disposable income
• Loan-to-value metrics
• Number and value of
bids from affordable
housing providers
Opportunities
• To continue to develop
strong working
relationships with
established mainstream
lenders and those wishing
to increase volume in
the new build market
Link to sustainability
priorities
Homes and places
Responsible and
resilient business
Accountability
• UK Sales and
Marketing Director
• Regional Sales and
Marketing Directors
Principal Risks and uncertainties continued
Taylor Wimpey plc
Annual Report and Accounts 2025
72
C
Availability and costs of materials and subcontractors
Description
Increase in housing demand and production
or a breakdown within the supply chain
may further strain the availability of skilled
subcontractors and materials and put pressure
on utility firms to keep up with the pace of
installation, resulting in increased costs
and construction delays.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low-moderate
Link to values
Link to strategic
cornerstones
Key mitigations
• Central procurement and key supplier agreements
• Supplier and subcontractor relationships
• Disaster recovery and business continuity plans
with all key suppliers
• Buffer stock with key suppliers
• Contingency plans for critical path products
• Direct trade and apprenticeship programmes
• Key commodity risk assessment matrix
• Regular checks on all key suppliers
• Continual monitoring of the supply chain
• Multi-source strategies
Example risk indicators
• Material and trade
shortages
• Material and trade
price increases
• Level of build quality and
waste produced from sites
• Longer build times
• Number of skilled trades
Opportunities
• To develop and implement
different build methods
as alternatives to
conventional brick
and block
Link to sustainability
priorities
Supply chain
partners
Accountability
• Supply Chain Director
• Procurement Director
• Group Commercial
Director
D
Attract and retain high-calibre employees
Description
An inability to attract, develop, motivate
and retain high-calibre employees, together
with a failure to consider the retention and
succession of key management, could result
in a failure to deliver our strategic objectives,
a loss of corporate knowledge and a loss
of competitive advantage.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Low
Risk appetite
Moderate
Link to values
Link to strategic
cornerstones
Key mitigations
• Production Academy and Production Manager
succession development programme
• Schools outreach strategy
• Collaboration with major organisations on
a sector skills plan
• Graduate and apprenticeship programmes
• Management training
• Enhanced remote working procedures
• Educational masterclasses
• Salary benchmarking
• Long term manpower planning
Example risk indicators
• Employee engagement
score
• Number of, and time
to fill, vacancies
• Employee turnover levels
Opportunities
• To further develop
in-house capability,
expertise and knowledge
Link to sustainability
priorities
Our people
Accountability
• Group HR Director
• Every employee
managing people
Principal Risks and uncertainties continued
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
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E
Land availability
Description
An inability to secure land at an appropriate
cost, the purchase of land of poor quality or
in the wrong location, or the incorrect timing
of land purchases in relation to the economic
cycle could impact future profitability.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Low
Risk appetite
Moderate
Link to values
Link to strategic
cornerstones
Key mitigations
• Critically assess opportunities
• Land quality framework
• Engagement with national and local Government
• Review of land portfolio
• Obtaining specialist environmental and legal advice
Example risk indicators
• Movement in landbank
years
• Number of land approvals
• Timing of conversions from
strategically sourced land
Opportunities
• A strong balance sheet
allows us to invest when
land market conditions
are attractive
Link to sustainability
priorities
Homes and places
Accountability
• Divisional Chairs
• Group Land Director
• Regional Managing
Directors
• Regional Land and
Planning Directors
• Managing Director
Group Strategic Land
F
Quality and reputation
Description
The quality of our products is key to a strategic
objective of being a customer-focused business
and in ensuring that we do things right first time.
If the Group fails to deliver against these
standards and its wider development
obligations, it could be exposed to reputational
damage, as well as reduced sales and
increased costs.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low
Link to values
Link to strategic
cornerstones
Key mitigations
• Customer-ready Home Quality Inspection
• Consistent Quality Approach
• Quality Managers in the business
• Customer-driven strategy
• Enhanced data analytics
• Ombudsman readiness
Example risk indicators
• Customer satisfaction
scores
• Number of National
House Building Council
(NHBC) claims
• Construction Quality
Review (CQR) scores
• Average reportable items
per inspection found
during NHBC inspections
at key stages of the build
Opportunities
• To better understand the
needs of our customers,
enabling increased
transparency of our
build profile
• To lead the industry in
quality standards (our
CQR score) and reduce
the number of reportable
items identified through
monitoring defects at
every stage of build
Link to sustainability
priorities
Homes and places
Supply chain
partners
Responsible and
resilient business
Accountability
• Group Customer
Experience Director
• Customer Director
• UK Head of Production
• Director of Design
Principal Risks and uncertainties continued
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
Taylor Wimpey plc
Annual Report and Accounts 2025
74
G
Health, safety and environment
Description
The health and safety of all our employees,
subcontractors, visitors and customers is of
paramount importance. Failure to implement
and monitor our stringent health, safety and
environment (HSE) procedures and policies
across all parts of the business could lead to
accidents or site-related incidents, resulting in
serious injury or loss of life.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Low
Risk appetite
Low
Link to values
Link to strategic
cornerstones
Key mitigations
• Embedded HSE system
• HSE training and inductions
•
Mental health training and support for all employees
• Robust monitoring and reporting procedures
• Utilisation of certified operatives
• Identification, review and evaluation of the impact
of new construction methods and materials
Example risk indicators
• Increase in near misses
and fatalities
• Health and safety
audit outcomes
• Number of reportable
health and safety incidents
Opportunities
• To lead the industry in
health and safety and to
reduce the amount and
level of incidents
Link to sustainability
priorities
Our people
Supply chain
partners
Environmental
impact
Responsible and
resilient business
Accountability
• Head of Health, Safety
and Environment
• Regional Managing
Directors
H
Natural resources and climate change
Description
An inability to reduce our environmental
footprint, the challenges of a degraded
environment, including the impacts of climate
change, nature loss and water scarcity on
our business, supply chain scarcity due to
environmental change, and the increasing
desire of our customers to live more sustainably
could impact our reputation, our ability to attract
investment and obtain planning permission,
and the delivery of our strategic targets.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low
Link to values
Link to strategic
cornerstones
Key mitigations
• Net Zero Transition Plan
• Published Environment Strategy
•
Adopted and validated net zero science-based targets
• Climate change governance, including Environmental
Governance Group and Sustainability Champions
• HBF and investor liaison
• Training and development in-house and in our
supply chain
• External benchmarking
• Collection and interpretation of data to drive
relevant actions
Example risk indicators
• Energy use and
greenhouse gas emissions
• Biodiversity net gain %
• Construction waste
generation and waste
to landfill
Opportunities
• Sustainable homes and
developments attractive
to customers
• A sustainable business
of choice for investors
• Advantageous
planning positions
Link to sustainability
priorities
Homes and places
Environmental
impact
Responsible and
resilient business
Accountability
• Group Communities
Director
• Regional Managing
Directors
Principal Risks and uncertainties continued
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
75
Strategic report
Directors’ report
Financial statements
Shareholder information
I
IT environment and security
Description
The Group places increasing reliance on IT to
conduct its operations and the requirement to
maintain the accuracy and confidentiality of its
information systems and the data contained
therein. A cyber attack leading to the corruption,
loss or theft of data could result in reputational
and operational damage.
Inherent risk
change in year
Residual risk
change in year
Residual rating
Moderate
Risk appetite
Low-moderate
Link to values
Link to strategic
cornerstones
Key mitigations
• Complex passwords policy and multi-factor
authentication for remote access
• Regular security patching and penetration testing
• Risky logins check
• Intrusion detection and prevention systems
• Suspected phishing emails process
• Mandated cyber training for all staff
• Cyber insurance
• Dedicated Head of Cyber Security
• Cyber security KPIs
• Enhanced end-point protection software
implemented across the IT estate
• Blocked traffic originating from countries
deemed a threat to the UK
• Disaster recovery process
Example risk indicators
• Number of devices with
critical and high open
vulnerabilities
• Number of devices without
latest patching in place
• Phishing test results
• Cyber training
completion statistics
• Number of users with
administrative privileges
to critical systems
Opportunities
• Together with our service
partners, provide a level
of security to reinforce
our reputation as
a trusted partner
Link to sustainability
priorities
Responsible and
resilient business
Accountability
• IT Director
Principal Risks and uncertainties continued
Key to our strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Key to our values
Respectful and fair
Take responsibility
Better tomorrow
Be proud
Key to risk change
Increased risk
No change
Decreased risk
Taylor Wimpey plc
Annual Report and Accounts 2025
76
Income statement
Group revenue was £3,844.6 million in 2025
(2024: £3,401.2 million), with Group completions,
excluding joint ventures, 6.0% higher at
11,108 (2024: 10,476). The UK ASP for private
completions increased by 5.1% to £374k
(2024: £356k), due mainly to regional mix.
The UK ASP for affordable housing increased
modestly to £187k (2024: £186k). Affordable
housing accounted for 20.9% of total
completions, slightly lower than the prior year
(2024: 21.8%). The total UK ASP was 5.0%
higher at £335k (2024: £319k).
Group gross profit increased to £658.4 million
(2024: £648.7 million), the current year including
an unexpected £20.0 million charge in relation to
historical defective workmanship by a principal
contractor at one of our London developments and
the combined impact of ongoing low single digit
build cost inflation alongside softer pricing in the
opening orderbook. These factors contributed to a
decrease in gross margin to 17.1% (2024: 19.1%).
Value distributed during 2025
£359.4m
Contributions to local communities
via planning obligations
(2024: £345.1m)
£283.2m
Employment
(2024: £275.2m)
£330.4m
Dividends paid in year
(2024: £339.4m)
2025 Group results
UK
Spain
Group
Completions including joint ventures
10,735
494
11,229
Revenue (£m)
3,652.0
192.6
3,844.6
Adjusted operating profit* (£m)
368.9
51.7
420.6
Adjusted operating profit margin* (%)
10.1
26.8
10.9
Profit before tax and exceptional items (£m)
394.2
Profit for the year (£m)
100.4
Basic earnings per share (p)
2.8
Adjusted basic earnings per share* (p)
8.0
Group financial review
Resilient
performance
in challenging
market conditions
“Disciplined operational focus and consistent
execution of our strategy enabled us to deliver
a robust set of results.”
Chris Carney
Group Finance Director
77
Strategic report
Directors’ report
Financial statements
Shareholder information
Net operating expenses were £483.7 million
(2024: £314.8 million), which includes
£225.8 million (net of discounting) of costs relating
to the cladding fire safety provision, as described
on pages 40 to 41, (2024: £68.9 million) and
£18.0 million relating to the CMA information
sharing investigation commitments, including
associated legal and professional fees
(2024: nil). Excluding exceptional costs,
net operating expenses were £239.9 million
(2024: £232.3 million), mainly made up
of administrative costs of £247.4 million
(2024: £242.0 million), which increased due to
annual salary reviews and the higher employers’
National Insurance rate. This resulted in a profit
on ordinary activities before financing of
£174.7 million (2024: £333.9 million),
£418.5 million (2024: £416.4 million)
excluding exceptional items.
Completions from joint ventures in the year were
121 (2024: 117). The Group’s share of joint
ventures’ results in the year was a £2.1 million
profit (2024: £15.9 million loss, £0.2 million loss
before exceptional items). The total order book
value of joint ventures as at 31 December
2025 decreased to £10 million (31 December
2024: £28 million), representing 38 homes
(31 December 2024: 104 homes).
When including the share of joint ventures’
results in the profit on ordinary activities before
financing and exceptional items, the resulting
adjusted operating profit was £420.6 million
(2024: £416.2 million), delivering an adjusted
operating profit margin of 10.9% (2024: 12.2%).
The net finance expense before exceptional items
was £26.4 million (2024: £2.3 million income) and
is predominantly made up of imputed interest on
land acquired on deferred terms, bank interest
and interest on the pension scheme. In the prior
year, this was more than offset by interest earned
on the higher cash balances held through that
year. The unwinding of the discounting of the
cladding fire safety provision in the year was
£3.9 million (2024: nil), recognised as an exceptional
item. The total net finance expense for the year
was £30.3 million (2024: £2.3 million income).
Profit on ordinary activities before tax was
£146.5 million (2024: £320.3 million). The total
tax charge for the year was £46.1 million
(2024: £100.7 million), an effective rate of 31.5%
(2024: 31.4%); the current year includes a credit
of £65.5 million in respect of the exceptional
charges recognised (2024: £20.2 million). The
pre-exceptional tax charge was £111.6 million
(2024: £120.9 million), representing an underlying
tax rate of 28.3% (2024: 28.9%).
As a result, the profit for the year was
£100.4 million (2024: £219.6 million).
Basic earnings per share was 2.8 pence
(2024: 6.2 pence). The adjusted basic earnings
per share was 8.0 pence (2024: 8.4 pence).
Spain
Our Spanish business primarily sells second
homes to European and other international
customers, with a small proportion of sales
being primary homes for Spanish occupiers.
The business completed 494 homes
(2024: 504 homes) with the ASP increasing to
€455k (2024: €440k), due to regional and product
mix. The order book as at 31 December 2025
decreased to 361 homes due to the timing of
site openings (31 December 2024: 491 homes).
Gross margin was 29.6% (2024: 28.2%), which
flowed through to an adjusted operating profit of
£51.7 million (2024: £47.4 million) and an adjusted
operating profit margin of 26.8% (2024: 25.4%).
The total plots in the landbank stood at 3,157
(31 December 2024: 3,214), with net operating
assets* of £89.3 million (31 December 2024:
£89.5 million).
Group financial review continued
£23.5m
Pension contributions
(2024: £22.1m)
£85.2m
Taxes
(2024: £132.1m)
Taylor Wimpey plc
Annual Report and Accounts 2025
78
As at 31 December 2025, the UK short
term landbank comprised 76,772 plots
(31 December 2024: 78,626), with a net
book value of £2.8 billion (31 December 2024:
£2.9 billion). Short term owned land had a net
book value of £2.7 billion (31 December 2024:
£2.9 billion), representing 62,402 plots
(31 December 2024: 65,521). The controlled
short term landbank represented 14,370 plots
(31 December 2024: 13,105).
The value of strategic owned land decreased to
£157 million (31 December 2024: £180 million),
representing 29,401 plots (31 December 2024:
31,764), with a further total controlled strategic
pipeline of 103,610 plots (31 December 2024:
104,375). Total potential revenue in the owned
and controlled landbank was £61 billion
(31 December 2024: £60 billion).
Work in progress (WIP)
Total WIP investment, excluding part exchange
and other, increased to £2,019.7 million
(31 December 2024: £1,949.3 million), due
to an increase in the number of open outlets
and build cost inflation. Average WIP per
UK outlet increased marginally to £9.1 million
(31 December 2024: £8.9 million).
Provisions and deferred tax
Provisions increased to £492.1 million
(31 December 2024: £306.7 million) due primarily
to the increase recognised in the cladding fire
safety provision noted on pages 40 to 41.
There were also increases from costs for
remediation at one of the Group’s historical
London developments where the original principal
contractor was carrying out the works, but
ceased operations on site, and the costs
associated with the commitments made to the
CMA. These increases were partly offset by
utilisation of the cladding fire safety provision
(£49.4 million) as works have been carried out,
as well as utilisation of other provisions.
The net deferred tax asset of £25.6 million
(31 December 2024: £20.6 million) relates
to the pension deficit and UK and Spanish
provisions that are tax deductible when the
expenditure is incurred.
Balance sheet
Net assets at 31 December 2025 decreased
to £4,186.8 million (31 December 2024:
£4,405.2 million), with net operating assets
decreasing marginally by £3.9 million to
£3,813.1 million (31 December 2024:
£3,817.0 million). Return on net operating
assets* increased to 11.0% (31 December 2024:
10.9%). Group net operating asset turn*
was 1.01 times (31 December 2024: 0.89),
reflecting the increase in revenue in the year.
Land
Land reduced by £187.1 million to
£3,200.4 million at 31 December 2025, primarily
reflecting strong recoveries on completions, which
exceeded investment in new land in the year.
In addition, routine land disposals contributed
to the reduction, with proceeds reinvested into
smaller, higher returning sites in line with our
disciplined capital allocation strategy. Land
creditors decreased to £522.5 million as payment
of existing creditors exceeded new commitments
arising from the acquisition of land (31 December
2024: £627.9 million). Included within the gross
land creditor balance is £40.4 million of UK land
overage commitments (31 December 2024:
£39.9 million). £296.4 million of the land creditors
is expected to be paid within 12 months and
£226.1 million thereafter (31 December 2024:
£355.9 million and £272.0 million).
Group financial review continued
In 2025 we made good
progress recycling capital
into smaller sites, reducing
the scale of the landbank,
increasing outlet numbers
and improving the
distribution of our
investments across
the country.”
Chris Carney
Group Finance Director
79
Strategic report
Directors’ report
Financial statements
Shareholder information
Group financial review continued
Pensions
During 2023, the Group engaged with the Trustee
of the Taylor Wimpey Pension Scheme (TWPS)
on the triennial valuation of the Scheme with
a reference date of 31 December 2022. The
valuation was concluded in March 2024 and
showed that the TWPS had a surplus of
£55 million on its Technical Provisions funding
basis and a funding level of 103%. As a result,
no deficit contributions were required to be paid to
the TWPS or to the escrow account established
following the 2019 valuation. The escrow account
will remain in place until 30 June 2028, at which
point a funding test will be conducted and funds
will either be paid to the TWPS or returned to
the Group.
The Group continues to provide a contribution for
Scheme expenses (£2.0 million per annum) and
also makes contributions via the Pension Funding
Partnership (PFP) (£5.1 million per annum until
2029). The PFP also has seven annual payments
due of up to £12.5 million each from 2029 to
2035; these are only payable if the TWPS has
a deficit on its Technical Provisions funding basis
at the prior 31 December.
Total Scheme contributions and expenses in
the year were £7.1 million (2024: £7.1 million).
At 31 December 2025, the IAS 19 valuation of
the Scheme was a surplus of £107.0 million
(31 December 2024: £90.2 million). Due to the
rules of the TWPS, any surplus cannot be
recovered by the Group and therefore a deficit
has been recognised on the balance sheet under
IFRIC 14. The deficit is equal to the present value
of the remaining committed payments and any
forecasted distributions from the PFP.
Retirement benefit obligations of £18.1 million
at 31 December 2025 (31 December 2024:
£22.2 million) comprise a defined benefit pension
liability of £17.8 million (31 December 2024:
£22.0 million) and a post-retirement healthcare
liability of £0.3 million (31 December 2024:
£0.2 million).
The Group continues to work closely with the
Trustee in managing pension risks, including
management of interest rate, inflation and
longevity risks.
Net cash and financing position
Net cash decreased to £342.6 million at
31 December 2025 (31 December 2024:
£564.8 million), reflecting the reduction in land
creditors and other payables, the payment
of dividends and cash outflows related to
exceptional charges. Average net cash for the
year was £220.5 million (31 December 2024:
£494.5 million).
Cash conversion* decreasing to 63.7% of
adjusted operating profit for the year ended
31 December 2025 (2024: 74.9%) reflects
a lower cash generated from operations due
to the decrease in land creditors, as payments
have been made, and the increase in receivables
arising from land sales and bulk deals.
Net cash, combined with land creditors, resulted
in an adjusted gearing* of 4.3% (31 December
2024: 1.4%).
At 31 December 2025, our committed
borrowing facilities were £687 million, of which
the £600 million revolving credit facility was
undrawn at the end of the year. The weighted
average maturity of the committed borrowing
facilities at 31 December 2025 was 4.5 years
(31 December 2024: 4.6 years). During the year
an extension of one year to 2030 was agreed for
the revolving credit facility.
*
Definitions and reconciliations of our APMs to the equivalent statutory measures are included in Note 32 of the financial statements.
Please see page 81 for definitions.
Taylor Wimpey plc
Annual Report and Accounts 2025
80
Group financial review continued
Distributions
Subject to shareholder approval at the AGM
scheduled for 28 April 2026, the 2025 final
ordinary dividend of 2.95 pence per share will be
paid on 15 May 2026 to shareholders on the
register at the close of business on 7 April 2026
(2024 final dividend: 4.66 pence per share). In
combination with the 2025 interim dividend of
4.67 pence per share, this gives total ordinary
dividends for the year of 7.62 pence per share
(2024 ordinary dividend: 9.46 pence per share).
In addition, the Group has announced the
intention to commence a buyback of £52 million,
to be commenced shortly and intended to be
completed by the end of June 2026. Combined
with the 2025 final ordinary dividend, this forms
part of the Group’s policy to annually return 7.5%
of the Group’s net assets.
The dividend will be paid as a cash dividend, and
shareholders have the option to reinvest all of their
dividend under the Dividend Re-Investment Plan
(DRIP), details of which are available on our
website www.taylorwimpey.co.uk/corporate.
Going concern
The Directors remain of the view that the Group’s
financing arrangements and balance sheet
strength provide both the necessary liquidity
and covenant headroom to enable the Group
to conduct its business for at least the next
12 months from the date of signature of the 2025
financial statements. Accordingly, the financial
statements are prepared on a going concern
basis. See Note 1 of the Financial Statements
for further details of the assessment performed.
Alternative Performance Measures
A reconciliation of Alternative Performance Measures to statutory measures is disclosed in Note 32
of the financial statements. In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure
in Financial Statements’ in 2027, which for the first time defines an operating profit subtotal, the
Group has renamed the measures of operating profit and operating profit margin to adjusted
operating profit and adjusted operating profit margin respectively. The calculation methodologies
for the measures are unchanged.
• Adjusted operating profit is defined as profit
on ordinary activities before financing,
exceptional items and tax, after share of
results of joint ventures.
• Adjusted operating profit margin is
defined as adjusted operating profit
divided by revenue.
•
Net operating assets is defined as basic net
assets less net cash, excluding net taxation
balances and accrued dividends. Average
net operating assets is the average of the
opening and closing net operating assets
of the 12-month period.
• Return on net operating assets (RONOA)
is defined as rolling 12-month adjusted
operating profit divided by average net
operating assets.
•
Tangible net assets per share is defined as
net assets before any accrued dividends,
excluding intangible assets, divided by the
number of ordinary shares in issue at the
end of the period.
• Adjusted basic earnings per share
represents earnings attributed to the
shareholders of the parent, excluding
exceptional items and tax on exceptional
items, divided by the weighted average
number of shares in issue during the period.
•
Net operating asset turn is defined as total
revenue divided by the average of opening
and closing net operating assets, based on
a rolling 12-month period.
• The Annual Injury Incidence Rate (AIIR) is
defined as the number of incidents per
100,000 employees and contractors,
calculated on a rolling 12-month basis,
where the number of employees and
contractors is calculated using a monthly
average over the same period.
•
Net cash is defined as total cash less
total borrowings.
• Cash conversion is defined as cash
generated from operations divided by
adjusted operating profit, based on
a rolling 12-month period.
• Adjusted gearing is defined as adjusted
net debt divided by net assets. Adjusted
net debt is defined as net cash less
land creditors.
81
Strategic report
Directors’ report
Financial statements
Shareholder information
Viability disclosure
In accordance with the 2024 UK Corporate
Governance Code, the Directors and the senior
management team have assessed the prospects
and financial viability of the Group for a period
longer than the 12 months required for the
purpose of the ‘going concern’ assessment.
Time period
The Directors have assessed the viability of the
Group over a five-year period, taking account of
the Group’s current financial position, current
market circumstances and the potential impact
of the Principal and emerging risks facing the
Group. The Directors have determined this as
an appropriate period over which to assess the
viability based on the following:
• It is aligned with the Group’s bottom-up
five-year budgeting and forecasting cycle
• Five years represents a reasonable estimate
of the typical time between purchasing land,
its progression through the planning cycle,
building out the development and selling
homes to customers from it
Five years is also a reasonable period for
consideration given the following broader
external trends:
• The cyclical nature of the market in which
the Group operates, which tends to follow
the economic cycle
• Consideration of the impact of government
policy, planning regulations and the
mortgage market
• Long term supply of land, which is
supported by our strategic land pipeline
• Changes in technology and
customer expectations
Assessment of prospects
We consider the long term prospects of the
Group in light of our business model. Our
strategy to deliver sustainable value is achieved
through delivering high-quality homes for our
customers, in the locations where people want
to live, while carefully managing our cost base
and the Group’s balance sheet.
In assessing the Group’s prospects and long
term viability, due consideration is given to:
• The Group’s current performance and the
Group’s financing arrangements
• The wider economic environment and
mortgage market, as well as changes to
government policies and regulations, including
those influenced by sustainability, climate
change and the environment, that could
impact the Group’s business model
• Strategy and business model flexibility,
including customer dynamics and approach
to land investment
• Principal Risks associated with the Group’s
strategy and business model, including those
which have the most impact on our ability to
remain in operation and meet our liabilities as
they fall due
Principal Risks
The Principal Risks to which the Group is
subject, have undergone a comprehensive
review by the GMT and Board in the current year.
Consideration is given to the risk likelihood based
on the probability of occurrence and potential
impact on our business, together with the
effectiveness of mitigations.
The Directors identified the Principal Risks that
have the most impact on the longer term
prospects and viability of the Group, and as such
these have been used in the modelling of a
severe but plausible downside scenario, as:
• Government policies, regulations
and planning (A)
• Mortgage availability and housing demand (B)
• Availability and costs of materials and
subcontractors (C)
• Quality and reputation (F)
• IT environment and security (I)
Viability statement
Taylor Wimpey plc
Annual Report and Accounts 2025
82
Viability statement continued
A range of sensitivity analyses for these risks,
together with likely mitigating actions that would
be adopted in response to these circumstances,
were modelled, including a severe but plausible
downside scenario in which the impacts were
aggregated together.
The impact from ‘Natural resources and climate
change’ (H) is not deemed to be material within
the five-year forecast period, as costs associated
with the regulatory changes have been included
in the modelling.
Assessment of viability
The Group adopts a disciplined annual business
planning process involving the management
teams of the UK regional businesses and Spain,
and the Group’s senior management, and is
built on a bottom-up basis. This planning
process covers a five-year period comprising
a detailed budget for the next financial year,
together with a forecast for the following four
financial years.
The financial planning process considers the
Group’s profitability and Income Statement,
Balance Sheet including landbank, gearing and
debt covenants, cash flows and other key
financial metrics over the forecast period.
These financial forecasts are based on a number
of key assumptions, the most important of
which include:
• Timing and volume of legal completions of
new homes sold, which includes annual
production volumes and sales rates over
the life of the individual developments
• Average selling prices achieved
• Build costs and cost of land acquisitions
• Working capital requirements
• Capital repayment plan, where we have
assumed the payment of the ordinary
distribution in line with the current policy,
which is a minimum of £250 million or 7.5%
of the Group’s net assets per annum,
throughout the period
Stress testing our
risk resilience
The assessment considers sensitivity analysis on
a series of realistically possible, but severe and
prolonged, changes to principal assumptions.
In determining these, we have included
macroeconomic and industry-wide projections
as well as matters specific to the Group.
The severe but plausible downside scenario
reflects the aggregated impact of sensitivities,
taking account of a further decline in customer
confidence, disposable incomes and mortgage
availability. To arrive at our stress test we have
drawn on experience gained from managing the
business through previous economic downturns.
We have applied the market dynamics
encountered at those times, as well as the
mitigations adopted, in order to test the resilience
of our business. As a result, we have stress
tested our business against the following severe
but plausible downside scenario, which can be
attributed back to the Group’s Principal Risks
that have been identified as having the most
impact on the longer term prospects and viability
of the Group.
Volume
(Principal Risk: A, B, C, F) – a decline in
total volumes of 10% in 2026 from 2025 levels,
before recovering back to 2025 levels by 2028.
Price
(Principal Risk: B) – a reduction to current
selling prices of 10%, remaining at these levels
across 2026 and 2027 before recovering to
current levels by 2028.
One-off costs
(Principal Risk: A, F, I) –
a one-off exceptional charge and cash cost of
£150 million for an unanticipated event, change
in government regulations or financial penalty
has been included in 2026.
The mitigating actions considered in the
model include a reduction in land investment,
a reduction in the level of production and work in
progress held and reducing our overhead base
to reflect the lower volumes.
If this scenario were to occur, the Directors also
have a range of additional options to maintain
financial strength, including a more severe
reduction in land spend and work in progress,
the sale of assets, reducing the distributions
and/or raising debt.
At 31 December 2025, the Group had
a cash balance of £430 million and access
to £600 million from a fully undrawn revolving
credit facility, together totalling £1,030 million.
The combination of both of these is sufficient to
absorb the financial impact of each of the risks
modelled in the stress and sensitivity analysis,
individually and in aggregate.
Confirmation of viability
Based on the results of this analysis, the
Directors have a reasonable expectation that
the Group will be able to continue in operation
and meet its liabilities as they fall due over the
five-year period of their assessment.
83
Strategic report
Directors’ report
Financial statements
Shareholder information
Stakeholder engagement and Section 172 (1) statement
Buying a home is likely to be the biggest and most
personal purchase any of us ever make. Customer
engagement, at all stages of the journey, is very
important to ensure we are delivering the high-quality
product and service our customers expect.
While we strive to deliver excellent customer service,
we know we don’t always get it right. Feedback is key
to ensure we continue to improve.
How we engage
• We engage with customers throughout the customer
journey – at our developments, over the phone,
via email, letters, our customer portal (Touchpoint)
and throughout website
• We have a dedicated Customer Hub
• We monitor customer views through focus groups,
satisfaction surveys, Trustpilot reviews and customer
research on specific issues to better understand
their needs
•
We have a clear complaints process and are fully
signed up to the New Homes Quality Board and
New Homes Ombudsman Service
• Our website is updated with relevant information
and ‘how to’ videos
•
All customers receive a full ‘From House to Home’
pack with information on their home and
contact details
How the Board directly engages
• Visits to regional businesses and sites enable
the Directors to see the homes that we build for
our customers
How the Board indirectly engages
•
Updates on customer matters are included in each
Chief Executive report, including progress against
customer service KPIs
• Customer Director provides an update on customer
initiatives and feedback from focus groups once
a year
Key challenges
• Maintaining high levels of customer satisfaction
• Increasing longer term customer satisfaction
Engagement performance metrics
and highlights in 2025
• Continued to deliver high customer satisfaction scores
and achieved five-star status for 2025
• Transitioned to new HBF customer satisfaction
rating which is calculated using four questions
on quality and service from the 8 week survey
and four questions on quality and service from
the 9 month survey
• Continued to increase construction quality scores
and lead the volume homebuilders
• Continued to engage constructively with the
New Homes Ombudsman
• Welcomed the CMA’s conclusion of investigation
by accepting voluntary commitments
• Focused on embedding a consistent sales journey
communication plan
Priorities for 2026
• Ensuring swift resolution of customer issues
• Maintaining high construction quality scores
• First Customer Experience Director appointed to
the GMT in February 2026
Sustainability priorities
Homes and places
Environmental impact
Responsible and resilient business
Relevant KPIs
• HBF customer satisfaction score
• Construction Quality Review
• Average reportable items per inspection
Strategic cornerstones
Land
Operational excellence
Sustainability
Engaging with
our stakeholders
Engaging with all our stakeholders and hearing their feedback
makes us a better business.
During 2025, we continued to engage with all our stakeholders,
seeking their views, listening to and responding to their feedback.
Read more about stakeholder engagement and climate change on
page 53
Our customers
Taylor Wimpey plc
Annual Report and Accounts 2025
84
Stakeholder engagement and Section 172 (1) statement continued
Our employees are key to our success and we strive
to ensure all our employees have a voice, and feel
supported and valued.
How we engage
• Annual employee survey
• Company-wide emails
• Regular Q&A Teams meetings with Chief Executive
and senior management
•
Dedicated employee helpline available to all employees
• National Employee Forum, Local Employee Forums,
Young Persons Forum
• System of employee networks sponsored by senior
management to support employees and actively
promote diversity, alongside a system of dedicated
champions across the business, including charity
and mental wellbeing
• GMT and Operational Management Team (OMT)
conduct visits to regional businesses
How the Board directly engages
• Executive Directors engage through regular
visits, conferences, emails, presentations and
Q&A Teams meetings
• The Employee Champion directly engages with our
employees and keeps the Board apprised of any
matters relating to the workforce
• Non Executive Directors engage with employees
during visits to regional businesses and sites
• Employee-shareholders have the opportunity to meet
the Board and submit questions at the AGM
How the Board indirectly engages
• Reports from the Chief Executive, Group
Human Resources Director and Divisional Chairs
on employee engagement activities are tabled at
each Board meeting
• The Board considers employee survey results and
steps taken to respond to feedback received
Key challenges
•
Ensuring employees at all levels across the business,
including on site, feel heard
• Attracting, retaining and progressing the best people
in the industry
• Driving high engagement with site-based employees
• Increasing diversity
Engagement performance metrics
and highlights in 2025
• High employee engagement score of 92%
(2024: 93%)
• Low voluntary turnover of 11.9% (2024: 12.1%)
•
50 Pride in the Job Quality Awards (2024: 62),
15 Seals of Excellence (2024: 16), three Regional
Awards (2024: two) and won the Supreme award for
the second consecutive year
• Refreshed the Young Persons Forum and
National Employee Forum
• Embedded development support for our
Female successors
•
Made accessibility of learning easier with the launch
of a Learning Management System
• Enhanced the digital capability of our leaders
• Enhanced the career paths and development
available, in particular for site management
•
Rolled out competition law training to all employees
Priorities for 2026
• Continue to embed our employee value proposition
and our Learning Management System
•
Identify and strengthen future skills gaps to drive
sustainable delivery
Sustainability priorities
Our people
Responsible and resilient business
Relevant KPIs
• Annual Injury Incidence Rate
• Employee engagement
Strategic cornerstones
Operational excellence
Sustainability
We value collaboration with our partners to ensure they
align with our standards and seek to support them.
How we engage
• Supply Chain Sustainability School
• Letters, emails, calls, meetings, conferences, site visits
• Training sessions
• Supporting our local and national charities, overseen
by our Charity Committee
• Through membership of industry organisations such
as the HBF and the British Property Federation
• Working with Local Authorities and registered provider
partners (housing associations) to integrate
high-quality social housing on our developments
How the Board indirectly engages
•
The Chief Executive provides an update on key supply
chain matters at each Board meeting
Key challenges
• Understanding and highlighting risks across whole
supply chain
Engagement performance metrics
and highlights in 2025
• Introduction of quarterly and national supply
chain awards
• Refreshed our research strategy, incorporating
learnings from recent large-scale research projects
such as our Future Homes Trial at Sudbury
•
Working closely with our industry partners and supply
chain to identify and develop solutions and
specifications which may support us in meeting the
requirements of the Future Homes Standard which is
expected in 2026
•
Donated and fundraised c.£1 million for national and
local charities (2024: c.£1 million)
• Continued to support suppliers and subcontractors,
including with new regulation
• National employee Christmas charity campaign
collected over 14k winter essentials for the homeless
•
Raised over £174k for charity via our annual
Taylor Wimpey Challenge (2024: £157k)
Priorities for 2026
•
Continue our focus on improving health and safety
and environmental protection
• Continue to engage with local stakeholders
• Continue to engage with national stakeholders,
including Government across political parties,
and with industry bodies on key areas
Sustainability priorities
Homes and places
Our people
Supply chain partners
Environmental impact
Responsible and resilient business
Relevant KPIs
• Annual Injury Incidence Rate
• Reduction in operational carbon emissions intensity
Strategic cornerstones
Land
Operational excellence
Sustainability
Our employees
Our partners
85
Strategic report
Directors’ report
Financial statements
Shareholder information
Stakeholder engagement and Section 172 (1) statement continued
While homebuilding can be disruptive it also delivers
huge long term benefits for existing communities.
Engaging with new and existing communities throughout
the life cycle of a development enables us to hear their
aspirations, concerns and, where possible, incorporate
their feedback in our plans.
How we engage
• Meetings, exhibitions, workshops
• Newsletters, information boards
• Surveys
• Social media
How the Board indirectly engages
• During site visits, Non Executive Directors
see first-hand how the investments we make
positively impact the communities that we build
Key challenges
• Ensuring communities understand the value
that Taylor Wimpey can bring to their local area
Engagement performance metrics
and highlights in 2025
• Invested £359 million in local communities via
planning obligations (2024: £345 million)
• Continued to support local community organisations
• Appointed Taylor Wimpey’s first Communities Director
Priorities for 2026
• Continued commitment to local engagement
• Remain focused on strong placemaking
Sustainability priorities
Homes and places
Our people
Supply chain partners
Environmental impact
Responsible and resilient business
Relevant KPIs
• HBF customer satisfaction score
• Reduction in operational carbon emissions intensity
Strategic cornerstones
Land
Sustainability
Engaging with investors at regular intervals ensures
they are well informed and have access to accurate
information. We aim to be accessible and transparent.
How we engage
• Results presentations, meetings, roadshows
and conferences
• Emails, calls and video conferences
• Site visits
• Website
• Benchmarks and disclosure initiatives
How the Board directly engages
•
The Chief Executive and Group Finance Director meet
with investors at organised investor roadshows
throughout the year, including US investor roadshow
•
The Chair of the Board and Remuneration Committee
Chair meet with institutional shareholders
• The AGM continues to provide an important
opportunity to engage with all shareholders,
particularly our retail shareholders
How the Board indirectly engages
• Annual presentations from the Company’s brokers
on their views of the shareholder base
Key challenges
• Ensuring investors understand the investment
proposition and what differentiates Taylor Wimpey
Engagement performance metrics
and highlights in 2025
•
Investor and Analyst Update in October 2025 with
Chief Executive and Group Finance Director, together
with senior management, setting out medium term
targets with a clear path to achieve these
• Received Highly Commended Award for the
2024 Annual Report
• Further increased the number of ESG metrics
that were subject to independent limited
assurance procedures
•
In addition to UK, we completed a North American
roadshow with management and a European
roadshow with Investor Relations
Priorities for 2026
• Continued commitment to best practice disclosure
• Continue to regularly engage with existing and
prospective investors and analysts
• Updated Distribution Policy
Sustainability priorities
Homes and places
Our people
Environmental impact
Responsible and resilient business
Relevant KPIs
•
Land cost as % of average selling price on approvals
• Landbank years
• % of completions from strategically sourced land
• HBF customer satisfaction score
• Employee engagement
• Construction Quality Review
• Average reportable items per inspection
• Reduction in operational carbon emissions intensity
• Annual Injury Incidence Rate
Strategic cornerstones
Land
Operational excellence
Sustainability
Capital allocation
Our investors
Our communities
Taylor Wimpey plc
Annual Report and Accounts 2025
86
Stakeholder engagement and Section 172 (1) statement continued
In performing their duties during our 2025 financial year, the Directors have had regard to the matters set
out in Section 172 (1) of the Companies Act 2006 as appropriate, with the principles underpinning the
Board’s general approach to decision making. Each Director of the Board confirms that, during the year,
they have acted in the way they consider, in good faith, would be most likely to promote the success of
the Company for the benefit of its members as a whole, and in doing so, have had regard (among other
matters) to the Section 172 (1) matters.
Section 172 (1) factor
Relevant disclosure
Page
A.
The likely consequences of
any decision in the long term
Our business model
Market trends, opportunities and risks
Our commitment to the environment
21 to 28
36 and 37
47 to 49
B.
The interests of the
company’s employees
Our business model
Monitoring our culture
Performance and operational review
Stakeholder engagement and Section 172 (1) statement
21 to 28
108 to 110
41 to 43
84 to 89
C.
The need to foster the
company’s business
relationships with suppliers,
customers and others
Our business model
Market trends, opportunities and risks
Principal Risks and uncertainties
Performance and operational review
Stakeholder engagement and Section 172 (1) statement
21 to 28
36 and 37
71 to 76
40 to 41
84 to 89
Section 172 (1) factor
Relevant disclosure
Page
D.
The impact of the
company’s operations
on the community and
the environment
Our business model
Our sustainability framework
Our commitment to the environment
Task Force on Climate-related Financial Disclosures
Stakeholder engagement and Section 172 (1) statement
21 to 28
46
47 to 49
51 to 65
84 to 89
E.
The desirability of the
company maintaining
a reputation for high standards
of business conduct
Our business model
Task Force on Climate-related Financial Disclosures
Non-financial and sustainability information statement
Risk management
Audit Committee report
21 to 28
51 to 65
66 and 67
68 to 70
120 to 128
F.
The need to act fairly
as between members
of the company
Our business model
Stakeholder engagement and Section 172 (1) statement
Engaging with our shareholders
Remuneration Committee report
21 to 28
84 to 89
106 and 107
129 to 158
87
Strategic report
Directors’ report
Financial statements
Shareholder information
Stakeholder engagement and Section 172 (1) statement continued
Context of the decision
During the year, the Board considered and
approved the Company’s updated medium
term strategy and targets ahead of the
Investor and Analyst Update in October
2025. In developing the medium term
strategy and targets, the Board worked
closely with senior management to ensure
that the aims are grounded in operational
reality, disciplined capital deployment and a
clear understanding of the market, regulatory
and policy environment in which the
Group operates.
To deliver the medium term targets we
will use our strong existing landbank to
increase sales outlets to grow our volumes
and profits. We are also targeting a reduction
in landbank years from c.7.2 to 4.5-5 years,
increasing capital efficiency to drive a
significant improvement in our return on
net operating assets.
Read more about our medium term strategy
and targets on
pages 3 and 14
How the Board considered the impact of the decision
on our stakeholders
Our customers
The Board considered that the target to
increase UK completions to 14,000 homes
through outlet led growth will enable
Taylor Wimpey to operate a larger number
of outlets across a broader geographic area.
This will provide customers with greater choice
of locations and improve the availability of new
homes. The UK has a major housing shortage
and, as one of the UK’s largest homebuilders,
we have a major role to play in providing
high-quality, energy-efficient homes.
Our employees
Employees are at the heart of delivering
our medium term strategy and targets
and enabling sustainable growth. We have
a consistent goal of being an employer of
choice in our industry and have established
excellent training and development plans
to enable us to retain and attract talent.
We have also invested in technology to
improve our operations and free up employee
time for more value added tasks (such as
introducing artificial intelligence to help our
employees fulfil repetitive tasks more easily).
A successful, efficient and growing business
is in the best interests of our current and
future employees.
Our partners
The Board considered the impact on our
partners, noting that disciplined growth and
clearer forward planning support stronger and
more collaborative supply chain relationships.
Early supplier engagement, standardisation
and scale efficiencies were recognised
as enabling more effective procurement,
cost management and delivery across the
supply chain.
Our investors
The medium term targets provide transparency
on achievable growth, margins, capital
efficiency and possible returns for our investors
and potential new shareholders.
The plans we outlined show our confidence in
the market opportunity ahead and provided
greater clarity on how the business can rebuild
towards prior volume levels, supported by
strong cash generation and disciplined
capital allocation.
Our communities
Disciplined landbank management and
regulatory readiness were considered
important in ensuring responsible
development that supports resilient
and high-quality communities.
Conclusion
The Board concluded that approving the
Company’s medium term targets is in the
long term interests of the Company and its
stakeholders. The land market conditions and
regulatory changes present both challenges
and opportunities to differentiate our product,
improve efficiency, and adopt a proactive,
disciplined and collaborative approach to
regulation. The targets provide a clear
framework for delivering sustainable growth,
unlocking value and maximising returns,
while maintaining financial resilience.
Board decision:
Approval of
medium term
strategy and targets
Taylor Wimpey plc
Annual Report and Accounts 2025
88
Context of the decision
During the year, the Board considered and
approved our new environmental objectives
and 2026 environmental targets.
The proposed environmental objectives
considered by the Board are set across three
topics: climate change, nature, and waste
and water. They are designed to be realistic
yet ambitious, providing a clear long term
vision for improved environmental outcomes.
The Board also considered a proposal to
streamline the environmental targets to a
focused set of 10 to be delivered in 2026.
This simplification was recognised by the
Board as a way to embed consistent
behaviours across the business and to
communicate commitments more clearly
to our stakeholders.
Read more about our environmental objectives
and targets on
page 48
How the Board considered the impact of the decision
on our stakeholders
Our customers
Rising customer expectations for sustainable,
energy and resource-efficient homes were
considered and the Board noted that the
updated targets are designed to improve
environmental performance in our homes
alongside enhancing customer satisfaction
and long term value.
Embedding these targets into design, planning
and construction processes would support the
delivery of homes that are more efficient to run,
contribute to healthier living environments, and
maintain Taylor Wimpey’s competitive position in
a market that is placing greater emphasis on
environmental responsibility.
Our employees
Given the nature of our business, our
employees are essential to delivering our
objectives and targets. The Board considered
feedback from the extensive internal
consultation programme and noted that the
new objectives and targets are clearly defined,
easy to communicate and understand, and
provide clarity on the actions required locally
in order to achieve them.
The Board also recognised that clearly-defined
environmental targets help strengthen
employees’ sense of purpose, giving them
a clearer understanding of how their
daily work contributes to meaningful
environmental outcomes.
Our investors
The Board carefully considered investors’
ESG expectations, recognising that investors
increasingly view strong sustainability
governance, credible environmental targets
and transparent reporting as essential
components of long term value creation.
Our new environmental objectives and 2026
environmental targets provide a clearer,
aligned and deliverable set of targets, reducing
operational uncertainty and supporting long
term value creation.
Our communities
The Board assessed the environmental and
social implications of the decision, noting
that our new environmental objectives and
2026 environmental targets would reduce the
Company’s carbon footprint, support nature
and deliver more responsible use of resources.
The Board considered the environmental
implications across resource consumption,
carbon emissions and waste generation and
recognised the opportunity to enhance long
term community benefit through environmental
stewardship. The Board also recognised
that nature initiatives would support
Taylor Wimpey’s wider placemaking strategy.
Conclusion
The Board concluded that approving our
new environmental objectives and 2026
environmental targets were in the long
term interests of the Company and its
stakeholders. The targets are challenging yet
realistic, providing a clear focus on expected
outcomes. By clearly defining our objectives,
simplifying targets and enhancing operational
implementation across the business, the Board
believes the environmental objectives and targets
will deliver long term value for customers,
communities, employees and shareholders,
while supporting Taylor Wimpey’s continued
transition to Net Zero Carbon by 2045 and to
a more sustainable and resilient business.
Board decision:
Approval of
new environmental
objectives and 2026
environmental targets
Stakeholder engagement and Section 172 (1) statement continued
Approval of the Strategic report
This Strategic report on pages 3 to 89
was approved by the Board of Directors and
signed on its behalf by
Jennie Daly,
Chief Executive
89
Strategic report
Directors’ report
Financial statements
Shareholder information
Audit Committee
“The Committee has balanced its
oversight of financial reporting with
its review of the effectiveness of the
Group’s risk management and internal
control framework.
”
Scilla Grimble
, Audit Committee Chair
Nomination and
Governance Committee
“We remain focused on ensuring that
there are strong succession pipelines
into our various senior leadership roles.”
Robert Noel
, Nomination and
Governance Committee Chair
Remuneration Committee
“We seek to ensure executive
remuneration outcomes are fair, support
long term value creation and reflect
the views of our shareholders.
”
Lord Jitesh Gadhia
,
Remuneration Committee Chair
In this section
Governance at a glance
91
Board of Directors
92
Group Management Team
95
Chair’s introduction to the Directors’ report
96
Our governance structure
97
Division of responsibilities
98
Board leadership
99
UK Corporate Governance Code compliance statement
100
Strategic focus in 2025
102
Board in action
105
Engaging with our shareholders
106
Monitoring our culture
108
Nomination and Governance Committee report
111
Audit Committee report
120
Remuneration Committee report
129
Statutory, regulatory and other information
159
Read more on
pages 120 to 128
Read more on
pages 111 to 119
Read more on
pages 129 to 158
Directors’
report
Taylor Wimpey plc
Annual Report and Accounts 2025
90
Governance at a glance
Fully compliant
In 2025, we complied with all of
the principles and provisions set
out in the 2024 UK Corporate
Governance Code (the 2024
Code), published by the Financial
Reporting Council on its website,
which sets out standards of good
practice for listed companies such
as Taylor Wimpey.
Read more on
pages 100 and 101
Chair and Non Executive Director tenure
6 years
3 years
1 year
6 years
5 years
5 years
3 years
Robert Noel
Irene Dorner
Lord Jitesh Gadhia
Scilla Grimble
Mark Castle
Clodagh Moriarty
Martyn Coffey
Board and Committee meeting attendance
Board
Audit
Committee
Nomination and
Governance
Committee
Remuneration
Committee
Robert Noel
9/9
–
3/3
5/5
Jennie Daly
9/9
–
–
–
Chris Carney
9/9
–
–
–
Mark Castle
9/9
3/3
3/3
5/5
Martyn Coffey
(a)
8/9
2/3
2/3
–
Irene Dorner
9/9
–
3/3
–
Lord Jitesh Gadhia
9/9
–
3/3
5/5
Scilla Grimble
9/9
3/3
3/3
–
Clodagh Moriarty
9/9
–
3/3
5/5
(a) Martyn Coffey was unable to attend the meetings held on 25 February 2025. He had advised the
Chair and the Group General Counsel and Company Secretary of his unavailability on this date
prior to his appointment in December 2024.
Board skills matrix
Operational
Financial
Property
Customer
service
Economics
Public
sector
Risk
IT
ESG
Strategy Construction
Supply chain
and
manufacturing
Robert Noel
Jennie Daly
Chris Carney
Mark Castle
Martyn Coffey
Irene Dorner
Lord Jitesh Gadhia
Scilla Grimble
Clodagh Moriarty
Total
9
7
6
4
2
2
7
3
9
9
4
3
Board age diversity
1
40–50
4
51–60
4
61–75
Board gender diversity
4
Female
5
Male
Ethnicity
1
Ethnic minority
8
White
Independence
(excluding the Chair)
2
Executive
Directors
5
Independent Non
Executive Directors
1
Non-independent Non
Executive Director
Board roles
1
Chair
2
Executive Directors
6
Non Executive
Directors
Board
overview
91
Financial statements
Shareholder information
Strategic report
Directors’ report
Date of appointment
Appointed as a Non Executive Director on
1 October 2019. Appointed as Chair on 27 April 2023
Board tenure
6 years
Skills and attributes which support strategy
and long term success
• A former commercial business leader with
a long track record in the property sector
and operating in a cyclical environment
• Experience of chairing a FTSE 250 company
• Ability to challenge while working collegially
and developing strong relationships among
key stakeholder groups
Career and experience
Robert served as Chief Executive of Land Securities
Group PLC from 2012 to 2020. He was previously
Property Director at Great Portland Estates plc
and a Director of Nelson Bakewell, the property
services group. He is also a former President of
the British Property Federation.
External appointments
• Chair at Hammerson plc
• Trustee of the Natural History Museum
• Non Executive Director at GMS Estates Limited
Date of appointment
Appointed as Group Operations Director on
20 April 2018. Appointed as Chief Executive
on 26 April 2022
Board tenure
7 years
Skills and attributes which support strategy
and long term success
• Exceptional leadership and a razor-sharp focus
on operations and strategy execution
• Broad knowledge of the homebuilding and
land and planning sectors
• Proactive approach to stakeholders and their
key priorities, with extensive customer and
people-focused skills
Career and experience
Before becoming Chief Executive, Jennie had been
Group Operations Director since 2018. Jennie joined
the Company from Redrow plc in 2014 as UK Planning
Director, progressing to UK Land Director in 2015.
Jennie’s previous roles include Managing Director of
Harrow Estates plc and strategic land oversight at
Westbury plc. Following her appointment as Chief
Executive on 26 April 2022, Jennie has full day to day
responsibility for delivering the Company’s strategy
in a profitable, safe and environmentally responsible
manner. Jennie was previously a Non Executive
Director of the Peabody Trust.
External appointments
• Member of the Board at the Home
Builders Federation
• Non Executive Director at New Homes Quality
Board Limited
•
Member of the Board of the Construction Skills
Mission Board
Date of appointment
20 April 2018
Board tenure
7 years
Skills and attributes which support strategy
and long term success
•
A wealth of experience in the homebuilding industry
• Extensive knowledge of the Company’s operational
affairs, including treasury, pensions, information
technology and tax matters
• In-depth insight into the Company’s risk environment
Career and experience
Chris is a Chartered Accountant and has worked
in private practice with Deloitte and in-house for
Associated British Foods plc. Since joining in 2006,
he has successively held the roles of Group Financial
Controller, Finance Director of Taylor Wimpey UK,
Managing Director of the Company’s South Thames
regional business, and Divisional Chair for the London
and South East Division.
As Group Finance Director, Chris has operational
responsibility for managing the Company’s finances
and also oversees the information technology and
pension functions.
External appointments
• None
Robert Noel
Chair
Jennie Daly CBE
Chief Executive
Chris Carney
Group Finance Director
N
R
Key
A
Audit Committee
R
Remuneration Committee
N
Nomination and Governance Committee
Committee Chair
A diverse set
of skills and
relevant industry
experience
Board of Directors
Taylor Wimpey plc
Annual Report and Accounts 2025
92
Date of appointment
Appointed as a Non Executive Director on 1 June 2022.
Appointed as the Board’s Employee Champion on
27 April 2023
Board tenure
3 years
Skills and attributes which support strategy
and long term success
• Extensive operational insight and knowledge of the
construction sector, with particular focus on supply
chain, production and innovation
Career and experience
Mark was Chief Operating Officer of Mace Group and
previously held executive roles at Structuretone Inc and
Wates Group Ltd. In addition, Mark was Chair of Build
UK from 2017 to 2019.
External appointments
• Chair of Eleco plc
• Chair of Triangle Group
• Chair of Speller Metcalfe
Date of appointment
1 December 2024
Board tenure
1 year
Skills and attributes which support strategy
and long term success
• Valuable knowledge of the building industry,
with a particular focus on building products
manufacturing and distribution
Career and experience
Martyn was the CEO of Marshalls plc for over
10 years and prior to this he was the CEO of
Baxi Group and Divisional CEO of BDR Thermea.
In addition, Martyn was a Non Executive Director
of Eurocell Plc for eight years.
External appointments
• Non Executive Director of Luceco plc
Date of appointment
Appointed as a Non Executive Director on 1 December
2019. Appointed as Chair on 26 February 2020.
Stepped down as Chair and appointed as a non-
independent Non Executive Director on 27 April 2023
Board tenure
6 years
Skills and attributes which support strategy
and long term success
• Extensive executive experience operating in
highly regulated industries, with a strong ability
to communicate effectively and develop
stakeholder relationships
Career and experience
Irene has held a number of senior positions at HSBC
including CEO of HSBC Malaysia, CEO and President of
HSBC in the United States, Group Managing Director of
HSBC Holdings and member of the Group Management
Board. Irene was Chairman of Virgin Money (UK) plc
for seven months prior to its acquisition in 2018 and
was also a Non Executive Director of AXA SA and
Rolls-Royce Holdings plc.
External appointments
• Non Executive Director of Control Risks
• Honorary Fellow of St. Anne’s College, Oxford
• Trustee of the South East Asia Rainforest
Research Partnership
•
Chair of the Trustees for the Hampstead Theatre
Date of appointment
Appointed as a Non Executive Director on 1 March
2021. Appointed as Senior Independent Director on
1 December 2024
Board tenure
5 years
Skills and attributes which support strategy
and long term success
• Extensive involvement in public affairs and corporate
governance, following his executive career in finance
Career and experience
Jitesh has over 25 years’ executive experience,
principally in banking and private equity, having held
senior roles at Blackstone, Barclays Capital and ABN
AMRO. He previously supported the Letwin Review
of the build out rate of residential homes, and was a
Non Executive Director at UK Financial Investments
Limited, Senior Independent Director of Calisen plc
and a Member of the Board of UK Government
Investments Limited. Jitesh also has extensive
remuneration committee experience, across both
public and private companies.
External appointments
•
Member of the House of Lords since 2016
•
Non Executive Director of the Court of Directors of
the Bank of England
• Non Executive Director of Rolls-Royce Holdings plc
•
Non Executive Director of Intas Pharmaceuticals Limited
•
Chair and Trustee of the British Asian Trust
• Non Executive Director of Bard Topco Limited
Martyn Coffey
Independent
Non Executive Director
Mark Castle
Independent
Non Executive Director
Irene Dorner
Non-independent
Non Executive Director
Lord Jitesh Gadhia
Senior Independent
Director
A
N
R
N
A
N
R
N
Key
A
Audit Committee
R
Remuneration Committee
N
Nomination and Governance Committee
Committee Chair
Board of Directors continued
93
Financial statements
Shareholder information
Strategic report
Directors’ report
Date of appointment
1 March 2021
Board tenure
5 years
Skills and attributes which support strategy
and long term success
• Valuable knowledge and executive experience
in corporate finance, property and retail
Career and experience
Scilla has significant finance, risk and technology-related
experience in customer-facing environments, having
been Chief Financial Officer at Deliveroo plc and
Moneysupermarket.com Group plc and held senior roles
at UBS, Tesco plc and Marks and Spencer Group plc.
External appointments
• None
Date of appointment
1 June 2022
Board tenure
3 years
Skills and attributes which support strategy
and long term success
• Strategic, digital and customer-focused executive
experience with a focus on delivering an enhanced
customer experience
Career and experience
Clodagh started her career at Bain & Company, Inc and
has since held a range of positions at J Sainsbury plc,
including Head of Strategy, Chief Digital Officer and,
most recently, Chief Retail and Technology Officer.
Clodagh was also a Non Executive Director of
Sainsbury’s Bank.
External appointments
• Chief Executive Officer at Dunelm Group plc
Date of appointment
21 February 2023
Skills and attributes which support strategy
and long term success
• A trusted adviser with deep knowledge and
experience of the operational and legal framework
of the homebuilding sector
Career and experience
Ishaq became Interim General Counsel in 2022 having
previously held the role of UK Legal Director and originally
joined the Company in 2009 as the Group’s Dispute
Resolution Solicitor. Prior to this Ishaq worked in private
practice and was a partner at one of the country’s
leading homebuilder law firms.
External appointments
• None
Clodagh Moriarty
Independent
Non Executive Director
Scilla Grimble
Independent
Non Executive Director
Ishaq Kayani
Group General Counsel
and Company Secretary
N
R
A
N
Key
A
Audit Committee
R
Remuneration Committee
N
Nomination and Governance Committee
Committee Chair
Board of Directors continued
Taylor Wimpey plc
Annual Report and Accounts 2025
94
Group Management Team
A highly experienced and
dedicated management team
The strength and depth of our management team positions
us well for the future. With a combined total of over 140 years’
experience at Taylor Wimpey and longer in the homebuilding and
construction sector, our Group Management Team (GMT) has extensive
experience of managing across a wide range of market conditions.
Jennie was appointed Chief
Executive in 2022, having been
with the business for eight years and
with over 30 years’ experience in
land, planning and housing. Previous
roles within Taylor Wimpey have
included Land and Planning Director,
Group Operations Director and
Divisional Chair. As head of the GMT,
Jennie’s responsibilities include key
strategic and operational decisions,
sustainability, customer service and
health and safety.
Since joining in 2006, Chris has held
a number of roles in the business,
including Group Financial Controller,
Managing Director and Divisional
Chair. As Group Finance Director,
Chris’s role covers all areas of
finance, including tax, treasury and
managing the Group’s defined
benefit pension scheme, as well
as overall responsibility for our
information technology function.
Chris is also Chair of our Treasury
Committee and sponsor of our
Race and Ethnicity network.
Anne joined Taylor Wimpey in 2014
and has over 30 years’ experience
within human resources. Anne has
responsibility for all areas of human
resources, driving a clear employee
value proposition, which focuses
on culture, skill acquisition, pay, total
reward, benefits, talent identification
and development, succession
planning, wellbeing, driving high
performance and employee
engagement. Anne also oversees
the implementation of the
Company’s Diversity, Equality and
Inclusion Strategy and the charitable
aims of the business and is the
sponsor of our Embracing the
Change network.
Ishaq has over 25 years of legal,
regulatory and governance
experience and is responsible
for ensuring effective corporate
governance, legal and regulatory
compliance and the delivery of legal
services to the business. Ishaq
leads the Company’s Legal and
Secretariat functions, and prior to
joining the business in 2009 spent
12 years with a leading UK law firm.
Ishaq is a member of the IT Steering
Committee and the Treasury
Committee, and is the sponsor
of our enAble network.
Maria was appointed as Group
Customer Experience Director in
February 2026 having had extensive
experience in brand, customer
and pricing strategy, including
customer digital transformation.
In this role, Maria oversees sales,
marketing and customer service
with a focus on bringing them
together to deliver a seamless
end-to-end customer journey.
Novraj joined the Company over
nine years ago and has held
a number of roles in the business
including Finance Director and
Managing Director of two regional
businesses. As a Divisional Chair,
Novraj oversees our Bristol, East
Anglia, Exeter, South Midlands
and Southern Counties regional
businesses. He is also a member
of the Treasury Committee.
Shaun joined the Company over
24 years ago and has held a
number of roles in the business
including Finance Director, Land
and Planning Director and Managing
Director. As a Divisional Chair, Shaun
oversees our Midlands, North
Midlands, West Midlands, East
Midlands and South Wales regional
businesses. Shaun is also a member
of our IT Steering Committee and
sponsor of our Proud2B network.
Ian joined the business as
Land Director in 2013 and has
also held the roles of Managing
Director and Divisional Managing
Director. As Divisional Chair,
Ian oversees our East Scotland,
West Scotland, North East
and North Yorkshire regional
businesses. Ian is also Chair of
our Environmental Governance
Group and sponsor of our
Women in Construction network.
Lee joined the business in 1984 and
has held Managing Director and
Divisional Managing Director roles.
Lee now oversees our divisional
North and South Strategic Land
teams and is Divisional Chair
overseeing our Manchester,
North West and Yorkshire regional
businesses. Lee is also Chair
of our Equality, Diversity and
Inclusion Committee.
Lee Bishop
Group Managing
Director, Strategic
Land and
Divisional Chair,
North West and Yorkshire
Anne
Billson-Ross
Group Human
Resources
Director
Ian Drummond
Divisional Chair,
Scotland, North
East and North
Yorkshire
Chris Carney
Group Finance
Director
Shaun White
Divisional Chair,
Midlands and
Wales
Jennie Daly CBE
Chief
Executive
Novraj Sidhu
Divisional Chair,
Central and
South West
Maria Sebastian
Group Customer
Experience
Director
Ishaq Kayani
Group General
Counsel and
Company
Secretary
Ingrid Osborne served as Divisional Chair for London and South East and as a member of the Group Management Team until her resignation, effective, 31 December 2025.
95
Financial statements
Shareholder information
Strategic report
Directors’ report
This Report sets out how our commitment to best
practice and strong governance supports long
term creation of value for all of our stakeholders.
The Board’s strategic focus in 2025
As highlighted in my Chair’s Statement on
page 11, 2025 was a mixed year for the sector,
with encouraging progress on planning reform and
improving affordability offset by weaker consumer
sentiment that tempered sales in the latter part of the
year. Nonetheless, the Board remains confident in the
long term fundamentals of the homebuilding market,
and in October the Executive Directors alongside
senior management set out a clear strategy and
medium term targets that position the business to
deliver growth.
As a Board we engaged closely with senior
management in shaping the investment case
underpinning our new strategy and targets,
ensuring it reflects operational reality, disciplined
capital allocation and a clear understanding of
the opportunities and challenges facing the
Group. This work focused on how we can deliver
sustainable growth, unlock value and maximise
returns while maintaining financial resilience
through the cycle. Further detail on the Board’s
strategic focus in 2025 can be found on pages
102 to 104.
Distribution Policy
As previously mentioned on pages 12 and 18,
we have announced an updated Distribution
Policy whist maintaining our returns at 7.5%
of net assets per annum, or at least £250 million,
in two equal instalments.
Going forward, the Board intends to return a
minimum of 5.0% of net assets as an annual
ordinary dividend, with a further 2.5% of net
assets to be returned annually either as an
ordinary cash dividend or through a share
buyback, as the Board considers appropriate.
The Board believes that the greater flexibility
provided by this approach is in the best interests
of all shareholders.
Stakeholder engagement
Stakeholder engagement remains central to
our governance approach, ensuring the Board
has a clear understanding of how our decisions
influence those connected with the Company.
Through varied engagement mechanisms,
we stay informed about material concerns and
priorities. Additional detail is provided within our
stakeholder engagement and Section 172(1)
statement on pages 84 to 89.
Board members also continue to undertake site
and regional business visits, giving us first-hand
visibility beyond the employee survey results of our
culture and how it is embedded throughout the
organisation. You can read more about how the
Board monitors culture on pages 108 to 110.
At the 2025 Annual General Meeting (AGM), the
Directors’ Remuneration Report received a vote in
favour of 73.90%. As required by the 2024 Code,
the Remuneration Committee Chair engaged with
shareholders who voted against the resolution to
understand their concerns. Further details on the
feedback received can be found on page 132.
As Chair of the Remuneration Committee, Jitesh
Gadhia also led a comprehensive engagement
exercise with our largest shareholders as part of
the review of the Directors’ Remuneration Policy.
We are grateful to all shareholders who took the
time to meet with us or provide written feedback.
A summary of the views received during this
consultation is set out on page 140.
This year’s AGM will be held at the Crowne Plaza
Hotel, Gerrards Cross, on Tuesday 28 April at
10.30am. We look forward to welcoming
shareholders, hearing their views and addressing
any questions. As is now customary, shareholders
may submit questions in advance by email.
Further information about the AGM is provided
on pages 233 to 247.
Board performance review
The annual Board performance review enables
the Board and its Committees to reflect on the
quality of their decision making and discussions,
while also allowing each member to consider their
own performance and contribution.
The findings from the Board’s internally led
performance review are presented on page 117
and confirm that the Board continues to operate
effectively with robust governance practices.
We made good progress against our 2024
actions and have set ourselves actions to further
strengthen our performance during 2026.
Looking forward
Going into 2026, we remain focused on
supporting senior management as they progress
the implementation of our strategy, including
ensuring that appropriate resources are in place to
deliver the medium term targets and maintaining
strong oversight to help anticipate risks and
remove barriers to delivery.
As a Board, we continue to be grateful for the
continued support of all our stakeholders over the
past year. We especially want to acknowledge our
employees, whose commitment and hard work
enabled us to achieve our 2025 performance.
Robert Noel
Chair
Chair’s introduction to
the Directors’ report
Robust
governance to
unlock growth
Dear shareholder,
I am pleased to present the Directors’ report
for 2025 (the Report) on behalf of your Board
and in accordance with the 2024 Code.
Taylor Wimpey plc
Annual Report and Accounts 2025
96
The Board provides strategic and commercial leadership within a robust governance framework. The key elements of our governance structure
are shown below.
The Board
The Board is collectively
responsible for promoting
the long term sustainable
success of the Group
and generating value
for shareholders and
other stakeholders.
The Company’s Executive Committee, the GMT, is responsible for the day to day management of the Company’s key strategic and
operational activities. The GMT is led by the Chief Executive and in 2025 comprised
1
the Group Finance Director, Group HR Director,
Group General Counsel and Company Secretary, Group Managing Director Strategic Land and the Divisional Chairs.
Audit
Committee
The Audit Committee assists the Board
in fulfilling its corporate governance
responsibilities relating to the Group’s
financial reporting, risk and internal
control framework and any other
matters referred to it by the Board.
Read more on
pages 120 to 128
Reporting to the Board
• Treasury Committee
• Disclosure Committee
Reporting to the GMT
• Operational Management Team
• IT Steering Committee
• Land Strategy Committee
• Environmental Governance Group
Nomination and
Governance Committee
The Nomination and Governance
Committee helps to ensure a formal,
rigorous and transparent procedure for
the appointment of new Directors and
other senior management. It keeps
the Board’s corporate governance
arrangements under review and ensures
that the Company and the Board
operate in a manner consistent with
corporate governance best practice.
Read more on
pages 111 to 119
Remuneration
Committee
The Remuneration Committee
establishes and maintains formal and
transparent procedures for developing
our policy on executive remuneration.
It sets, monitors and reports on the
remuneration arrangements for
individual Directors and senior
management. It also reviews wider
workforce remuneration and other
policies in accordance with the
2024 Code.
Read more on
pages 129 to 158
The Board’s Committees
GMT
Supporting Committees
Our governance structure
Chief Executive
Our Chief Executive is
responsible for developing
and implementing strategy
and has ultimate responsibility
for day to day operations.
The Board provides strategic leadership for the
business within the governance structure set
out on the left. The Board delegates some of its
authority to the Chief Executive and to the three
principal Committees which support the Board in
providing oversight. Each Committee has its own
Terms of Reference which set out its agreed roles
and responsibilities. Decisions that can only be
taken by the Board are set out in a Schedule of
Matters Reserved for the Board, which is available
on our website.
Good corporate governance is vital to ensuring
we can deliver our purpose of building great
homes and creating thriving communities. Our
governance structure facilitates this by providing
a framework for accountability and effective
decision making. The structure is designed to
ensure the long term success of the Company
for the benefit of all stakeholders.
The Board sets the strategic direction of the
Group, agrees the annual budget and ensures
that the necessary resources are available to
achieve sufficient progress towards the strategy.
Further information on how the Board oversaw
the strategy during the year can be found on
pages 102 to 104.
The Board conducts regular reviews of actual
results and future projections with comparisons
against budget and prior year performance.
There is a framework of delegated authorities,
approved by the Board, within which the individual
responsibilities of senior executives of Group
companies are identified and can be monitored.
1. From 3 February 2026 the GMT also includes the newly-created role of Group Customer Experience Director.
97
Financial statements
Shareholder information
Strategic report
Directors’ report
Non Executive Directors
Executive Directors
Chief Executive
• Ensure effective leadership and day to day
running of the Group
• Lead the GMT and oversee key functions
• Develop and implement the Group’s strategy,
strategic plan and annual budget
• Review the organisational structure, including
development and succession planning
• Manage the Group’s risk profile and establish
effective internal controls
• Agree the Group’s annual budget proposal for
formal agreement with the Board
•
Ensure the Chair and Board are advised and
updated regarding all key matters
• Maintain relationships with stakeholders and
advise the Board accordingly
• Overall responsibility for sustainability
Group Finance Director
• Manage the Group’s finances, including treasury
and tax matters
•
Lead the finance, tax, treasury, IT, internal audit
and pensions functions
• Oversee the Group’s risk profile, in conjunction
with the GMT
• Agree the Group’s annual budget proposal,
prior to formal agreement with the Chief Executive
and the Board
Group General Counsel
and Company Secretary
•
Provide advice and support to the Board, its
Committees and individual Directors on corporate
governance, compliance and legal matters
•
Ensure that the Board has the policies, processes,
information, time and resources it needs to
function effectively and efficiently
• Support the Chair to set meeting agendas
and ensure Directors receive accurate timely
and clear information
• Responsible for all Group legal and
compliance matters
• Oversee the Group’s Legal and
Secretariat functions
Employee Champion
• Champion the ‘employee voice’ in the boardroom
and ensure employee views are taken into
account by the Board, particularly on decisions
that could affect employees
• Strengthen the link between the Board
and employees
• Regularly gather the views of employees through
a variety of formal and informal channels and
identify any areas of concern
•
Liaise with senior management on a regular basis
on matters of employee engagement and culture
• Oversee senior management’s feedback to
employees on steps taken to address concerns
The respective responsibilities of key Board roles are set out in detail in our Division of Responsibilities document, which is available on our website. Summary information is provided below.
Chair
•
Lead and ensure the effectiveness of the Board in
directing the Group
• Chair Board and Nomination and Governance
Committee meetings, set meeting agendas and
ensure Directors receive accurate, timely and
clear information
• Promote high standards of corporate governance
• Build a well-balanced and highly effective Board
with a culture of openness and debate to
encourage constructive challenge
• Facilitate and promote constructive relations
between Board members and the effective
contribution of all Non Executive Directors
•
Lead the annual review of the Board’s effectiveness
• Engage with the Group’s stakeholders and
maintain an appropriate balance between the
interests of all stakeholders
• Demonstrate objective judgement
Senior Independent Director
•
Act as a sounding board for the Chair
•
Act as an intermediary for the other Directors,
when necessary
•
Be available to shareholders who wish to discuss
matters which cannot be resolved through the
usual channels
•
Chair Board meetings in the absence of the Chair
• Lead the Board’s evaluation of the Chair’s
performance
• Lead the Nomination and Governance Committee
in the search for a new Chair, if appropriate
Non Executive Directors
• Provide constructive challenge to the
Executive Directors
• Provide strategic guidance to the Group
• Offer specialist advice
• Serve on the Board’s Committees
• Scrutinise and hold to account the performance
of the Executive Directors against agreed
performance objectives
•
Devote sufficient time to the Group to meet
their responsibilities
Division of responsibilities
Taylor Wimpey plc
Annual Report and Accounts 2025
98
Board leadership
Policies and procedures
Conflicts of interest
Directors are required to notify the Group General
Counsel and Company Secretary of any potential
or actual conflicts of interest. These are reported
to the Board for consideration and, if appropriate,
approval. The Nomination and Governance
Committee, on behalf of the Board, is responsible
for monitoring the content of the Conflicts of
Interest Register and did so at each Committee
meeting held during 2025.
Whistleblowing
The Board has overall responsibility for overseeing
the implementation of our Whistleblowing Policy
(the Policy) and for reviewing the effectiveness of
actions taken in response to any concerns raised
under the Policy.
The Policy provides a clear procedure for
employees to report concerns to their line
manager or through a third party whistleblowing
hotline (the Hotline). Suppliers, subcontractors,
customers and members of the public may also
use the Hotline to report any matters of concern
to the Company. The Policy is well communicated
across the business, both to office-based
employees and on site.
All whistleblowing cases are investigated by
the Head of Internal Audit, the Group Human
Resources Director and/or the Group General
Counsel and Company Secretary depending on
the nature of the concern, and (where appropriate)
by the Head of Health, Safety and Environment.
The Board receives half-yearly updates which
include an anonymised summary of new
investigations into whistleblowing issues raised
during the period, indicating the nature of the
issue and the outcome of the investigation. Interim
updates on significant matters are also provided.
The Board is satisfied that the Policy and Hotline
and their administration remain effective.
Anti-bribery and anti-corruption
The Company has written policies outlining
its zero-tolerance approach to bribery and
corruption. The risks associated with bribery and
corruption are mitigated by training for senior
managers and by issuing an annual reminder,
which includes the current version of the policies,
to all regional businesses and key departments.
This annual exercise requires written confirmation
of continuing compliance and a completed
copy of the relevant gifts and hospitality register.
A training video on anti-bribery and anti-corruption
is also circulated to all relevant employees.
The Company also has a dedicated page on its
intranet that provides employees with an overview
of competition law obligations that must be
complied with.
ESG
ESG factors matter in every aspect of our
business. The Board is responsible for
overseeing our ESG initiatives and receives
regular reporting on sustainability.
The Chief Executive and the GMT lead
on the implementation of ESG initiatives
across the Group. The social and
governance aspects of ESG are considered
‘business as usual’ and this is evident in
our key performance indicators and
stakeholder interactions.
During the year, the Audit Committee
agreed that the external Auditors would be
engaged to provide limited assurance
on an expanded range of ESG metrics.
Read more on pages 50 and 120.
99
Financial statements
Shareholder information
Strategic report
Directors’ report
UK Corporate Governance Code compliance statement
The table below, together with the further information signposted, explains how we have applied the principles of the 2024 Code. The 2024 Code is available to view on the Financial Reporting Council’s website.
The Board considers that the Company has complied in full with all applicable provisions of the 2024 Code during the year ended 31 December 2025.
Code Principle
See page(s)
Section 1 – Board leadership and Company purpose
A
The Board performance review conducted in 2025 concluded that the Board continues to function effectively. The Board achieves oversight of the business, including resourcing, policies and
practices, by way of regular reporting from each GMT member and key Heads of Function and from the Treasury Committee, which is chaired by the Group Finance Director.
116 and 117
B
The Board sets our purpose, values, strategy and culture and ensures that they are aligned. Our purpose is to build great homes and create thriving communities and this is underpinned by our
strategy to build a stronger and more resilient business and deliver superior returns. We have a strong culture of doing the right thing, which all Directors act in accordance with.
3, 8 and 108
C
Throughout the Directors’ report as far as possible we have sought to focus our commentary on the actions and decisions taken by the Board and its Committees in support of the Group’s strategy
and purpose, and to indicate what has happened as a result of those decisions.
90 to 162
D
The Board actively seeks regular engagement with our stakeholders. In 2025 this included consulting with institutional investors on proposed changes to the Directors’ Remuneration Policy. The AGM
also provides an opportunity for shareholders to engage directly with the Board. A good framework exists for Board engagement with employees, led by the Board’s Employee Champion, Mark Castle.
84 to 89, 108 to
110 and 132
E
Our workforce policies and practices are kept under review by the Board to ensure they are consistent with our values and support our long term sustainable success.
Well-communicated procedures are in place for employees to report concerns to their line manager or through a third-party whistleblowing hotline if they wish to remain anonymous. The Board receives
anonymised half-yearly whistleblowing updates which enable it to assess the effectiveness of the arrangements.
99
Section 2 – Division of responsibilities
F
The 2025 Board performance review found that a good level of openness continues to exist between all Directors, Executive and Non Executive. The Chair plays a key role in encouraging openness
and debate, ensuring that all Non Executive Directors can make an effective contribution. Time is set aside at the end of every Board meeting for the Non Executive Directors to discuss matters with
the Chair without the Executive Directors present.
Directors have an opportunity as part of the Board performance review to comment on the quality and timeliness of the information provided to the Board which enables any issues to be identified
and addressed.
116 and 117
G
There is an appropriate balance of Executive and Non Executive Directors, with two Executive Directors, the Chair, five independent Non Executive Directors and one non-independent Non Executive
Director. Board roles are clearly defined in a Division of Responsibilities document, which is reviewed annually and available on our website.
91 to 94 and 98
H
The expected time commitment for the Chair and Non Executive Directors is agreed and confirmed in writing upon appointment. Any changes to external commitments must be considered and
approved by the Board.
Agendas for Board and Committee meetings are planned so that there is sufficient time for Non Executive Directors to use their skills and experience to constructively challenge proposals and hold
senior management to account. In addition, Non Executive Directors are encouraged to visit our regional businesses and sites on a regular basis.
113, 114 and 146
I
The Board and individual Directors are supported by the Group General Counsel and Company Secretary, to whom they have access at all times. The Directors receive information one week before
meetings take place to allow sufficient time for a detailed review of the documentation.
98
Taylor Wimpey plc
Annual Report and Accounts 2025
100
UK Corporate Governance Code compliance statement continued
Code Principle
See page(s)
Section 3 – Composition, succession and evaluation
J
All Board appointments are made within a framework of formal, rigorous and transparent procedures, are based on merit and objective criteria and promote diversity, inclusion and equal opportunity.
The Nomination and Governance Committee considers the succession plans for the Board, GMT and Heads of Function, as well as wider workforce planning for certain roles including regional
Managing Directors.
113 to 115
K
The balance of skills, experience and knowledge needed on the Board and its Committees is kept under review and is one of the factors taken into account in succession planning and appointment
processes. Regular teach-ins are provided on specific topics to ensure Directors maintain knowledge appropriate to their role.
The Nomination and Governance Committee considers the tenure of Non Executive Directors and is mindful that the 2024 Code does not consider them to be independent after they have served on
the Board for nine years.
113
L
The Board undertakes a formal and rigorous evaluation of the performance of the Board, its Committees, the Chair and individual Directors on an annual basis. At least every three years, this process
is externally facilitated, most recently for the 2023 Board evaluation. In 2025, the evaluation was internally facilitated by the Chair and Group General Counsel and Company Secretary.
116 and 117
Section 4 – Audit, risk and internal control
M
The Audit Committee is responsible for assessing the independence and effectiveness of the external audit and the internal audit function. The Audit Committee reviews the financial and narrative
statements.
123 to 127
N
Following its review, the Audit Committee recommended to the Board that it could confirm that the Annual Report and Accounts 2025, taken as a whole, is fair, balanced and understandable.
The going concern and viability statements specifically address the Board’s assessment of the Group’s current and future prospects.
128 and 162
O
In preparation for Provision 29 of the 2024 Code coming into effect in 2026, the Company’s existing systems of internal control and risk management have been reviewed and tested to ensure they
are effective. The Audit Committee monitors these systems, including their effectiveness, on behalf of the Board and advises the Board in connection with the Board’s own risk review.
68 to 76 and
120 to 127
Section 5 – Remuneration
P
Our approach to the remuneration of Executive Directors and senior management is designed to be aligned to the Company’s strategic objectives and support the long term success of the business
in the interests of all stakeholders.
134
Q
The Remuneration Committee regularly reviews the Remuneration Policy (the Policy). Our proposed new Policy will be put to a shareholder vote at the AGM in April 2026 (the 2026 Policy).
The Remuneration Committee considers that the 2026 Policy aligns with market practice, 2024 Code requirements and investor guidelines.
No Director or member of senior management is involved in decisions about their own remuneration.
129 to 131 and
138 to 147
R
The Remuneration Committee recognises that when exercising discretion it must do so in a careful and considered way taking into account all relevant circumstances, as it is an area that will rightly
be scrutinised by shareholders and other stakeholders. We provide appropriate, compliant disclosures in our Remuneration Committee report to explain the extent to which discretion has been
applied to remuneration outcomes and why. No such discretion was applied in 2025.
145
The Board welcomes the publication of the 2024 Code by the Financial Reporting Council. With the assistance of the Audit Committee and Nomination and Governance Committee we have undertaken a full
review of our governance structure in light of the updated 2024 Code to ensure that all recommendations are addressed in a timely manner to enable full compliance for the Group’s financial year commencing
1 January 2025, with the exception of Provision 29, which is applicable for the Group’s financial year commencing 1 January 2026. All governance documents have been reviewed and updated to reflect the
2024 Code, including the Matters Reserved for the Board, the Terms of Reference for each Committee and the Division of Responsibilities document.
101
Financial statements
Shareholder information
Strategic report
Directors’ report
In reviewing the size, shape and efficiency of the
landbank, the Board focused on supporting an
outlet led growth model, with future growth
expected to be driven primarily by higher outlet
numbers rather than net land investment.
This approach is underpinned by unlocking value
from the Group’s strong existing landbank and
reinvesting selectively into smaller, more capital
efficient sites, supported by a disciplined
approach to strategic land drawdown.
Taking these factors into account, the Board
approved a medium term UK landbank target
of 4.5-5 years, representing a reduction from
the June 2025 position of 7.3 years.
Overall, the Board concluded that the updated
land strategy is well aligned with the Company’s
growth strategy, while maintaining a disciplined
and risk aware approach to land investment.
Medium term targets
14k
UK completions
(excluding joint ventures)
4.5-5
UK landbank years
Strategic
focus in 2025
Delivering
growth
Driving future outlet and volume
growth from our strong landbank
and strategic pipeline, without
requiring net land investment.
In July and September 2025, the Board
considered whether the land portfolio, planning
approach and investment strategy remain
appropriate to support our medium term
growth ambitions in a changing market and
policy environment.
The review encompassed the external planning
backdrop, including the revised National Planning
Policy Framework, regional housing land supply
positions and development viability, and also
considered current land market conditions,
which remain competitive but where an improving
opportunity pipeline is emerging.
Geographic prioritisation was considered and the
varying opportunities and constraints across our
regional markets, noting in particular the impact
of evolving policy and regulatory requirements
on development viability in certain locations.
Ahead of the Investor and Analyst Update in October 2025, the
Board closely engaged with senior management in shaping the
medium term strategy which underpins our new medium term
targets, ensuring it is grounded in operational reality, disciplined
capital deployment and a clear assessment of the opportunities
and challenges facing the business. This centred on shaping and
articulating the investment case, focusing on how the Group can
deliver sustainable growth, unlock value and maximise returns
while maintaining financial resilience through the cycle.
Taylor Wimpey plc
Annual Report and Accounts 2025
102
delivers direct cost savings, it also supports
faster build times, improved working capital
management and the capacity to scale output
as outlet numbers grow.
In addition, Innovate
TW
is a Company-wide
initiative that reimagines how our people use
technology, cutting back routine tasks and
empowering employees to focus on higher-value
work that drives the business forward.
Taken together, the Board is satisfied that this
proactive, disciplined approach to regulation,
innovation and efficiency is unlocking value
across the business. It enhances asset quality,
strengthens returns and positions the Company to
deliver sustainable growth while remaining resilient
to future regulatory and market changes.
The Board has supported investment in
technology, design innovation and live on site
testing to ensure the business is well prepared
for regulatory change, particularly in relation to
the Future Homes Standard and net zero
requirements. Insights from early trials and
customer feedback have been reviewed and are
being embedded across the business, enabling
efficiencies to be scaled, operational readiness to
be strengthened and opportunities for product
differentiation to be realised.
Consideration has also been given to how
innovation is being used to unlock additional
value across the portfolio, including solutions
that improve build efficiency, increase saleable
space, reduce whole-life costs and enhance
customer appeal. These initiatives are supported
by disciplined capital decision making and
early supplier engagement, ensuring that
innovation remains commercially viable as
well as technically robust.
In parallel, the Board oversaw senior
management’s focus on cost mitigation and
value creation through supply chain optimisation,
standardisation and scale efficiencies. The Board
recognised that driving efficiency through
manufacturing, logistics and procurement not only
Throughout the year, the Board supported
management in positioning the Company to
unlock value by anticipating and responding
proactively to an evolving regulatory environment.
Management recognised that regulatory
change represents both a cost challenge
and an opportunity to differentiate our product,
improve efficiency and strengthen long term
returns, and this perspective has informed our
oversight of strategy, investment decisions and
risk management.
Management has a long established practice
of taking a collaborative and forward looking
approach to regulatory engagement with
government and policymakers. This early
involvement enables regulatory change to be
anticipated and influenced, reducing execution
risk and allowing potential costs to be factored
into land, design and procurement decisions
well in advance, thereby protecting margins and
asset values.
Strategic focus in 2025 continued
Unlocking
value
Operational levers in place to drive
efficiency with an experienced
management team to deliver.
103
Financial statements
Shareholder information
Strategic report
Directors’ report
During the year, the Board reviewed the
Company’s medium term targets, assessing their
deliverability in the context of current market
conditions, an improving planning environment
and the operational capacity of the business.
They were satisfied that the targets provide a clear
and credible framework for delivering sustainable
shareholder value over the medium term.
Consideration was given to how planned
volume growth underpins these targets,
including the objective to increase completions
to approximately 14,000 homes per annum.
In doing so, the Board reviewed the benefits of
operating leverage as volumes increase, and the
ability to scale output within the existing regional
business structure, supporting margin progression
through improved fixed cost absorption.
The Board focused on the key drivers of margin
improvement, including landbank evolution. The
transition from older, lower margin land to newer,
higher margin sites was reviewed to assess how it
supports delivery of the Group’s medium term
adjusted operating margin target of 16-18%, noting
that the margin benefit becomes more pronounced
from 2027 as a greater proportion of completions
are delivered from recently acquired land.
In overseeing capital efficiency, the Board also
assessed the actions being taken to improve
asset turn and reduce capital intensity, including
operating with a leaner landbank, improving work
in progress efficiency and redeploying capital into
more standard, capital efficient outlets. These
actions were considered directly in the context of
the Group’s medium term target to deliver returns
on net operating assets of at least 20% over the
medium term.
The Board reviewed expected cash generation and
its proposed allocation in support of the medium
term targets. The Board was satisfied that the
business is able to fund growth investment, maintain
a strong balance sheet and continue to return 7.5%
of net assets per annum, or at least £250 million, in
two equal instalments. In March 2026, the Board
announced an updated Distribution Policy, whereby
it is the Board’s intention to return a minimum of
5.0% of net assets as an ordinary dividend, with a
further 2.5% of net assets to be returned annually
either by way of an ordinary cash dividend or a
share buyback, as considered appropriate by the
Board at the time. Read more on page 12.
As such, the Board is confident that our
capital allocation priorities should remain
unchanged as follows:
Maintain a strong
balance sheet
Maintain low adjusted
gearing to reflect cyclical
nature of the industry
Focus on funding
business needs,
including land
investment and
WIP to drive growth
Distribution Policy
to pay 7.5% of net
assets annually (or at
least £250 million)
throughout the cycle
Excess cash returned
after funding land
investment, working
capital, taxation and the
ordinary distribution.
The method of return
(share buyback or
special dividend) will be
considered at the
appropriate time
Investment in land
and WIP to drive
future growth
Sustainable and
flexible shareholder
distribution
Return
excess cash
Medium term targets
16-18%
Group adjusted operating
profit margin
>20%
Group return on net
operating assets
Strategic focus in 2025 continued
Maximising
returns
Enhancing margins and generating
substantial cash to reinvest into
the business and pay a reliable
distribution to shareholders.
Taylor Wimpey plc
Annual Report and Accounts 2025
104
Board in action
Our
highlights
during 2025
105
Shareholder information
Financial statements
Strategic report
Directors’ report
February
• Approval of full year results
announcement (including the 2024
final dividend), the Annual Report and
Accounts 2024 and the Diversity and
Inclusion Report 2024
•
Deep dive:
Sales and marketing
March
• Clodagh Moriarty, Non Executive
Director, took part in an
International Women’s Day event
at our London regional business
•
Institutional investor
consultation:
Robert Noel met
with institutional shareholders.
Read more on
page 106
September
•
Board offsite visit:
Edinburgh
•
In September 2025, the Board strategy offsite visit took place in
Edinburgh. The Board undertook a visit to the West Craigs site in
East Scotland. The Board also met the management teams of both
our East and West Scotland regional businesses
•
From a strategic perspective, the Board received updates on
the following:
— The impact of devolution on Scotland
— Land strategy
— Build to rent
— Investor and Analyst Update
December
•
Deep dives:
Sustainability
framework and
environmental
targets and
health, safety and
the environment
July
• Approval of the half year results
announcement (including the
2025 interim dividend)
•
Institutional investor
consultation:
Jitesh Gadhia, in
his capacity as Remuneration
Committee Chair, consulted with
shareholders that voted against
the Directors’ Remuneration
Report at the 2025 AGM
Read more on
page 132
May
•
Deep dive:
Customer
service
•
Teach-in:
The Reward team
provided an overview of
incentive arrangements and
performance measures
across the workforce to all
Board members
June
•
Deep dives:
Midlands and
Wales Division
and Production
August
•
Chair and Non Executive Director regional
business and site visit:
North East
• Robert Noel and Clodagh Moriarty visited
our North East regional business in August.
The visit comprised:
— An update from the regional management team
— A site visit to Stoneridge Hall, Washington
— A lunch and presentation with the senior
management team
— An office meet and greet
—A presentation from the Young Persons Forum
Read more about the Chair and Non Executive
Director regional business and site visits during
2025 on
page 109
November
•
Institutional investor
consultation:
Jitesh
Gadhia, in his capacity as
Remuneration Committee
Chair, consulted with
shareholders on
proposed changes
to the Directors’
Remuneration Policy
Read more on
pages
129 to 158
April
•
2025 AGM:
attended by all Directors
•
Deep dive:
Technical, cladding and sustainability
•
Teach-in:
Neil Jefferson from the HBF provided an
overview of the current state and outlook of the UK
homebuilding industry, highlighting key challenges
including planning constraints, declining housing
supply and workforce capacity. The teach-in also
addressed policy developments, affordable
housing and building safety, and the role of industry
initiatives in supporting future growth and diversity,
concluding that further government action will be
required to deliver meaningful improvements in
housing delivery
Engaging with our shareholders
Engaging with
our shareholders
The Board actively seeks and
encourages engagement with
investors, including its major
institutional shareholders and
shareholder representative bodies.
During 2025, the Company
continued to engage with
shareholders in a proactive manner.
The charts on the right show the number of
meetings held with shareholders by the Chair,
the Remuneration Committee Chair, the Executive
Directors, the GMT and senior management,
and our Investor Relations team, along
with the percentage of the share register
represented. These engagements include
one-to-one meetings, group sessions and
conference meetings.
Number of shareholder
meetings in 2025
3
Chair
8
Remuneration
Committee Chair
61
Executive Directors*
7
GMT and
senior management*
36
Investor Relations
* Investor Relations also attended.
Investor relations programme
We operate a structured investor relations
programme, based around formal
announcements and publication of the full year
and half year results. The Board is kept regularly
apprised of the investor relations programme
and receives a detailed report at each meeting,
including specific consideration of investor
feedback following key engagements.
Our corporate brokers also attend Board
meetings as required to give their perspective
on institutional shareholder sentiment.
AGM
We look forward to engaging with our retail
shareholders at the AGM, which will be held
in person. Shareholders are invited to submit
questions via email in advance of the AGM,
and the Board will endeavour to answer
pre-registered questions during the meeting.
Further details on the 2026 AGM can be found
in the Notice of Meeting on pages 233 to 247.
Percentage of the share register
met in 2025
Chair
Remuneration
Committee Chair
Executive Directors*
GMT and senior
management*
Investor Relations
4.25%
32.01%
43.18%
2.75%
15.68%
* Investor Relations also attended.
North American Roadshow
Following the successful North American
Roadshow in 2024, the Executive Directors
and the Director of Investor Relations,
Communications and Strategy undertook
another roadshow to the region in 2025.
They met with 12 key institutional investors
and potential new holders in Boston,
New York and Toronto. Feedback from
investors was positive and management
expect to undertake a North American
roadshow annually.
Taylor Wimpey plc
Annual Report and Accounts 2025
106
Engaging with our shareholders continued
Answering
shareholders’
questions
The following questions reflect
key topics raised by shareholders
during the year and provide
insight into how shareholder
feedback informs the
Board’s oversight of strategy,
performance and long term
value creation.
We are protecting value
by ensuring operational
excellence and tight cost
controls which we consider
business as usual. We are optimising
current conditions through our sales efforts
and excellent product offering, resulting in
a strong sales rate relative to our industry.
We seek to match production rates with
sales rates to ensure we build at a rate
appropriate for market demand and are
protecting value. At the same time, we
are prioritising opening outlets since this is
the best way to drive growth in a more
subdued sales backdrop. It is always a
priority to develop our outlets as quickly as
possible since this is the best way to drive
returns for our stakeholders in any market.
Our first priority is to maintain
a strong balance sheet with
low adjusted gearing (gearing
adjusted for land creditors);
as at 31 December 2025, our adjusted
gearing remained extremely low
at 4.3%. Our second priority is to invest
appropriately in land and working capital
for the business. Only after these priorities
have been met do we return capital to
shareholders. Previously this comprised an
ordinary dividend of 7.5% of net assets per
annum or at least £250 million in two equal
instalments. In March 2026, the Board
announced an updated Distribution Policy,
returning a minimum of 5.0% of net assets
as an annual ordinary dividend, with 2.5%
of net assets returned annually either by
way of an ordinary cash dividend or a
share buyback, as the Board considers
appropriate at the time. Finally, where there
is surplus cash beyond these
commitments, it remains our intention to
return excess cash to shareholders as the
cycle evolves. It is worth noting that our
growth plan does not require net additional
land investment.
There are demonstrable
benefits to having one brand
from a sales and marketing
perspective and Ian
Drummond our Divisional Chair for
Scotland, North East and North Yorkshire
spoke about these during our Investor
and Analyst Update (which can be viewed
on our website). However, as Ian also
covered, we see many wider benefits
in terms of our unified group culture,
industry leading build quality and efficiently
leveraging our standard house types. Our
product range is comprehensive enough
to cover all of our target market and where
differentiation is warranted, we can still
achieve this by product and placemaking.
For example, we can concentrate certain
products, such as larger homes, or smaller
apartments in discreet areas in certain
larger sites with unique characteristics and
tailored placemaking. Our high customer
service scores, high brand recognition and
industry-leading sales rates demonstrate
the success of our approach.
Q
How are you
maximising
performance given
a challenging
market backdrop?
Q
How do you ensure
you have sufficient
capital to grow whilst
paying a dividend at
this level?
Q
Other large
homebuilders have
multiple brands, why
does Taylor Wimpey
only have one?
A
A
A
107
Financial statements
Shareholder information
Strategic report
Directors’ report
employee forums at national and local levels,
and other feedback channels. Particular emphasis
is placed on health and safety, our people, our
suppliers, compliance and ESG matters. The
culture also supports effective risk management
by promoting ethical behaviour and sound
decision making, helping to minimise compliance
breaches and reputational risk.
Fostering an inclusive culture is essential to
creating an environment where everyone feels
respected, valued and empowered to contribute
their best. This not only supports engagement
and retention but also enhances customer
experience and strengthens relationships within
the communities we serve.
The Board also helps to shape our overall employee
value proposition (EVP), ‘Make a Home at Taylor
Wimpey’. Our EVP provides a framework to
showcase both our culture and our continued
commitment to our employees, ensuring these
strengths remain key differentiators in attracting
and retaining talent.
How the Board monitors alignment between culture and
our purpose, values and strategy
The Board places considerable focus on understanding and assessing the organisation’s culture.
Through a combination of direct and indirect engagement with our people, the Board gains valuable
insight into how our cultural values are embedded, applied consistently across functions and reflected
in day-to-day behaviours. This approach enables the Board to observe culture in practice and assess
alignment across the Group. No specific actions were required as a result of this engagement.
Further details of these activities are provided below.
Employee Champion role
The Employee Champion is responsible
for championing the ‘employee voice’ in
the boardroom and strengthening the link
between the Board and employees.
The key activities of the Employee Champion
are set out in the Company’s Division of
Responsibilities document.
The Board’s Employee Champion is
Mark Castle, who regularly engages with
the workforce to gather their views through
a variety of formal and informal channels.
Mark works with the Chief Executive and Group
Human Resources Director to review identified
concerns and feedback trends, keeping the
Board informed on workforce-related matters.
Mark provided eight updates to the Board on
employee matters during the year.
Our values
Take
responsibility
Be
proud
Better
tomorrow
Respectful
and fair
As Employee Champion, I help
bring colleagues’ experiences and
ideas directly to the Board so their
voices influence how we move
forward together.”
Mark Castle
Independent Non Executive Director
Why our
culture is
important
Our culture is fundamental to how
we operate and deliver our purpose
of building great homes and
creating thriving communities.
It shapes our behaviours, influences our
decisions and drives the way we interact with
our customers, our people, and our stakeholders.
A strong culture of ‘doing the right thing’
underpins ethical conduct, builds trust, and
supports long term business performance and
resilience. It is a key enabler of our strategy,
helping us to deliver sustainable growth and long
term value for our shareholders and stakeholders.
For this reason, we place significant emphasis
on ensuring that the right cultural attributes are
embedded across our business.
The Board retains ultimate responsibility for
ensuring our culture is aligned with our purposes,
values and strategy. Together with the GMT,
the Board lead by example in demonstrating
behaviours that reflect our values. While the Chief
Executive is accountable for embedding our
culture across the business, the Board monitors
and supports its implementation through a range
of indicators, including employee engagement
surveys, site visits, whistleblowing reports, formal
Monitoring our culture
Taylor Wimpey plc
Annual Report and Accounts 2025
108
Monitoring our culture continued
Employee forums
Our National Employee Forum (NEF) plays
a vital role in ensuring that employee voices
are heard and considered in decision making.
Representing all parts of the business, the NEF
is chaired by a Regional Managing Director and
supported by our Employee Champion, who
attends every meeting. In 2025, the NEF met
four times to discuss a range of important
topics, such as customer service, the company
car scheme, the introduction of the new
Learning Management System and the
employee value proposition. The Employee
Champion provides an update at the next
Board meeting on any topics discussed at
the NEF.
Each regional business also operates a
Local Employee Forum (LEF), comprising
representatives from all functions or groupings of
smaller departments. The LEFs ensure two-way
communication by sharing feedback from the
NEF within their regional business and escalating
any concerns or suggestions back to the NEF.
To further enhance engagement, we introduced
a quarterly NEF and LEF update process in
2025, creating a structured mechanism for
capturing feedback both ways and improving
communication across the organisation.
Together, these forums play a critical role in
embedding our culture, promoting transparency
and ensuring that our people’s perspectives
inform our decisions.
Chair and Non Executive
Director regional business
and site visit programme
During 2025, the Chair and Non Executive
Directors undertook a series of regional business
and site visits, meeting employees at all levels
to listen to their views on Taylor Wimpey, its
performance, and how they contribute to its
success. These visits give a valuable opportunity
to see Taylor Wimpey’s culture in action and to
strengthen understanding of the business. In
total, 24 visits were carried out during the year
(2024: 25), and this programme will continue
into 2026. The Chair and Non Executive
Directors share insights from these visits at the
following Board meeting under the standing
employee engagement item. No concerns were
raised regarding Taylor Wimpey’s culture during
these visits.
Read more on
page 105
to see a sample
agenda for one of the visits that took place in
our North East regional business
Through the NEF and the
enhancements that were made during
2025, we are ensuring that the views
of our people are clearly heard and
reflected in how we run the business.”
Lisa Waugh
NEF Chair and Managing Director of the
Yorkshire regional business
24
visits during the year
(2024: 25)
109
Financial statements
Shareholder information
Strategic report
Directors’ report
Monitoring our culture continued
Leading by example: bringing
our culture to life
The Chief Executive plays a pivotal role in
embedding and championing Taylor Wimpey’s
culture throughout the organisation. In 2025,
Jennie Daly continued her active programme of
engagement, visiting eight regional businesses
to maintain direct connection with teams across
the UK. She also hosted four All-Employee
Teams calls alongside senior management
representatives, giving employees the
opportunity to ask questions in real time
and reinforcing a culture of openness
and transparency.
In addition, the GMT held four of its meetings
within regional businesses during the year,
enabling GMT members to spend time with
local teams and strengthen cultural alignment
across the organisation.
Twice a year, the Chief Executive hosts
a regional business Managing Director
conference to strengthen leadership alignment
and reinforce cultural expectations. This is
complemented by bi-annual staff conferences
at each regional business, which enables
Managing Directors to cascade feedback
to regional businesses. In addition, the NEF
and LEF structures support two-way
communication, ensuring that insights and
feedback flow back up to the Board.
Investing in and rewarding
our employees
The Board and its Committees also receive
updates on Taylor Wimpey’s recruitment,
onboarding and performance management
review processes. The Remuneration
Committee is responsible for ensuring
that the wider workforce remuneration
practices are aligned across the business.
Read more about this on
pages 135 and 136
Regular Board updates
The Board stays closely involved with what’s
happening across the business through regular
updates on key people-related matters at
meetings. These updates help to ensure that
culture is part of everyday life at Taylor Wimpey
and is continually assessed.
Throughout the year, the Board and its
Committees look at progress on learning and
development, diversity and inclusion, and how
we recruit and reward our teams. The Board
also reviews feedback from whistleblowing
reports, employee surveys and direct
conversations with employees and senior
managers. In addition, the Board maintains
close oversight of health and safety
performance, supplier payment practices,
and findings arising from Internal Audit activities.
All of this helps the Board to make informed
decisions that support our people and
strengthen the business.
Employee survey
The Board reviews the results of the annual
employee survey, providing an important
opportunity to hear feedback from our people
indirectly. Together with the GMT, the Board
considers this feedback and oversees action
plans to address the matters raised. In addition,
the Board regularly discusses agenda items
focused on our people, ensuring that employee
perspectives remain central to decision making.
Regular engagement with our teams
helps me ensure that our culture
remains strong, consistent and aligned
with how we lead the business.”
Jennie Daly CBE
Chief Executive
Taylor Wimpey plc
Annual Report and Accounts 2025
110
Nomination and Governance Committee report
Committee members
and meeting attendance
3
Number of Committee
meetings held during 2025
Meeting attendance
1. Robert Noel (Chair)
3/3
2. Mark Castle
3/3
3. Martyn Coffey
(a)
2/3
4. Irene Dorner
3/3
5. Jitesh Gadhia
3/3
6. Scilla Grimble
3/3
7. Clodagh Moriarty
3/3
(a)
Martyn Coffey was unable to attend the meeting
held on 25 February 2025. He had advised the
Chair and the Group General Counsel and Company
Secretary of his unavailability on this date prior to
his appointment in December 2024.
Committee meetings were also attended,
by invitation, by the Chief Executive, Group
Human Resources Director, Group General
Counsel and Company Secretary, members
of the Company Secretariat team, Head of
Talent and Resourcing, Head of Human
Resources, Chair of the National Employee
Forum, and Divisional Chair and Group
Managing Director Strategic Land.
Dear shareholder,
I am pleased to present the 2025 report of
the Nomination and Governance Committee
(the Committee) on behalf of the Board. This
report outlines the work undertaken by the
Committee during the year.
Following the appointments made in 2024,
including Martyn Coffey joining the Board and the
succession of Jitesh Gadhia and Scilla Grimble
to the roles of Senior Independent Director
and Audit Committee Chair, respectively, the
composition and dynamics of the Board remained
stable throughout 2025. In October 2025, the
Committee undertook a comprehensive review
of Board succession planning over a three-year
horizon, with a focus on maintaining the
appropriate balance of skills, knowledge and
experience to ensure the Board remains well
placed to support senior management in
delivering the Company’s growth strategy
and achieving its recently announced medium
term targets.
In preparation for the Company’s growth
ambitions, the Committee continued to
review leadership requirements to ensure the
business is supported by the right people and
capabilities. Two in-depth succession planning
reviews were conducted during the year, covering
GMT and Head of Function roles, enabling early
identification of high potential individuals and the
delivery of targeted training and development to
strengthen leadership readiness.
As part of our work on succession planning,
the Committee provides input into the senior
leadership development programmes on offer
at Taylor Wimpey. The initiatives have been
instrumental in creating clear succession
pathways for high potential individuals across all
levels of the organisation. They form a key part of
our employee value proposition, and we are proud
that employees value the opportunities on offer
and recognise the success we have achieved in
progressing talent internally. Read more about our
succession plans on page 115.
Equality, diversity and inclusion continues to
remain high on the Committee’s agenda, both
on the Board and at the wider organisational level.
As at 31 December 2025, the Board comprised
44% women and one Director from an ethnic
minority background. During the year, the
Committee reviewed progress against our
aspirational targets, examined the gender pay gap
and prepared for future reporting requirements.
Further details on our diversity and inclusion
progress, including our initiatives, can be found
on pages 118 and 119, and in our Diversity and
Inclusion Report, available on our website.
The Committee is also responsible for overseeing
the Company’s corporate governance framework
and remains committed to ensuring that best
practices in corporate governance are adhered
to throughout the organisation.
“Good governance and an inclusive
culture go hand in hand, and the
Committee remains focused on
ensuring our framework and
leadership approach continue
to meet evolving expectations.”
Robert Noel
Chair
111
Financial statements
Shareholder information
Strategic report
Directors’ report
Committee purpose
and responsibilities
The main objectives of the Committee are to
ensure that there are formal, rigorous and
transparent procedures for the appointment and
induction of new Directors to the Board, its
Committees and other senior positions in the
Company. The Committee is also responsible
for keeping the Board’s corporate governance
arrangements under review and to ensure
that both the Company and the Board operate
in a manner consistent with corporate governance
best practice.
More information about the Committee’s purpose
and responsibilities can be found in the
Committee’s Terms of Reference which are
available on our website.
Nomination and Governance Committee report continued
Following the work undertaken in 2024 to prepare
for the 2024 Code, including the review and
update of the Terms of Reference for each of the
Board Committees, the Matters Reserved for the
Board and Division of Responsibilities document,
the Company transitioned smoothly to the 2024
Code on 1 January 2025, ensuring that all the
requirements were met (with the exception of the
declaration under Provision 29 which is required
following the 2026 year end).
This year, the Board performance review
was facilitated internally. During the year, the
Committee approved the review approach and
received regular updates on progress against the
actions identified following the 2024 internally
facilitated Board performance review. Preparations
are now underway for the externally facilitated
Board performance review scheduled to take
place in 2026. Further details can be found on
pages 116 and 117 of this report.
Robert Noel
Chair of the Nomination
and Governance Committee
4 March 2026
Committee performance
The Committee reviewed its activities in
2025 against the Terms of Reference in
place during the year and discharged its
responsibilities in accordance with them.
The Committee’s Terms of Reference have
been reviewed against the 2024 Code and
best practice, with minor amendments
approved by the Committee at its February
2025 meeting.
The results of the 2025 internal Board
performance review concluded that the
Committee was fulfilling its duties effectively
and the Committee Chair was effective.
Documents available at
www.taylorwimpey.co.uk/corporate
The below governance-related documents can
be found on our website:
• Articles of Association
• Matters Reserved for the Board
• Division of Responsibilities
• Terms of Reference for the Board Committees
• Board mandated policies
Key activities in 2025
• Oversaw Martyn Coffey’s induction
following his appointment in late 2024
• Ensured compliance against the
2024 Code
• Approved the process for the internally
facilitated Board performance review
• Reviewed the Board, GMT, Heads of
Functions and wider workforce talent
and succession plans
• Received updates on the Company’s
equality, diversity and inclusion activities
and progress against targets
• Received an update from the NEF Chair
Taylor Wimpey plc
Annual Report and Accounts 2025
112
Nomination and Governance Committee report continued
Governance
During 2025, the Committee oversaw a number
of governance matters, which included:
• Approving the 2025 Notice of AGM
• Confirming compliance with the Committee’s
Terms of Reference during 2024
• Approving and recommending the Directors’
Conflicts of Interest Register to the Board at
each meeting
• Approving the 2025 internally facilitated Board
performance review process
• Approving the Committee’s annual plan
for 2026
• Reviewing the corporate governance
framework (including a review of constitutional
documents, Board Committees’ Terms of
Reference and the Company’s Market Abuse
Regulation Manual)
Board balance and skills
During 2025, the Committee considered the
structure, size and diversity of the Board, as well
as the skills, knowledge and experience of each
Board member.
The Committee concluded that the balance, as at
31 December 2025, of the Chair, two Executive
Directors and six Non Executive Directors remains
appropriate. This balance will be kept under
review during 2026. In addition, the skills of each
member of the Board, as set out on pages 91
to 94, along with the balance of Executive and
Non Executive Directors, is considered to be
appropriate to provide constructive challenge as
well as guidance and support in order to continue
to deliver the Company’s strategy.
Independence review
Each Director is required to seek re-election
at each year’s AGM. As part of this re-election
process, the Committee has assessed each Non
Executive Director’s independence and is satisfied
that five of the six Non Executive Directors remain
independent in nature and there were no
circumstances identified that are likely to impair,
or could impair, their independence. In addition,
the Committee is satisfied that the Chair was
independent in accordance with the 2024 Code,
when he became Chair of the Board in 2023.
Irene Dorner, having stepped down as Chair
of the Board in 2023, is now considered a
non-independent Non Executive Director. The
Committee considers the balance of independent
and non-independent Directors appropriate and
will keep this under review.
The Directors are required to notify the Company
of any changes to their external commitments so
that these roles can be considered in relation to
the potential for a conflict of interest to arise.
These external roles are considered by the
Committee and, during 2025, it has been
concluded that no conflicts of interest have arisen.
In addition, the Committee also considers that
each Director is able to allocate sufficient time to
the Company to discharge their duties effectively.
This not only included Board and Committee
meeting attendance, but also preparation time,
site visits and other additional time commitments
required during the year.
Accordingly, at the 2026 AGM, each Director,
irrespective of their appointment date, will be
submitted for re-election. More information can
be found on pages 234, 238 and 239.
113
Financial statements
Shareholder information
Strategic report
Directors’ report
Nomination and Governance Committee report continued
All Board appointments follow a formal, rigorous
and transparent process led by the Committee.
The process is based on merit and objective
criteria and promotes diversity of gender, social
and ethnic background, as well as cognitive and
personal strengths. This process was followed for
Martyn Coffey’s appointment and induction in
2024 and 2025, respectively.
Non Executive
Director appointment
and induction
process
The Committee set out
the skills and experience
required to complement
the Board’s existing
composition and
strategic priorities.
External search firms may
be engaged to identify
suitable candidates.
These firms are required
to adhere to the voluntary
enhanced code of conduct
for executive search firms
and confirm independence
from the Company and
its Directors.
A diverse longlist is
prepared and assessed
against the role profile,
followed by a shortlist
of preferred candidates
for interview.
Shortlisted candidates
meet with the Chair,
Executive Directors and
selected Non Executive
Directors.
The Committee
recommends the
preferred candidate to
the Board for approval.
Following the appointment,
a comprehensive induction
programme is provided
to ensure the new
Non Executive Director
quickly gains a thorough
understanding of
the business and
governance framework.
This typically includes:
Provision of a
comprehensive pack of
documents setting out
key information about the
Company and the Board,
including broker reports,
key governance
documents and information
on directors’ duties.
One-to-one meetings with
a number of key internal
individuals, including the
Chair, Executive Directors,
Non Executive Directors,
members of the GMT and
Heads of Functions.
Meetings with the
Company’s solicitors,
brokers, corporate
communications advisers
and external Auditors.
Participation in the Chair
and Non Executive Director
regional business and site
visit programme.
Appointment
process
Induction
process
Taylor Wimpey plc
Annual Report and Accounts 2025
114
Nomination and Governance Committee report continued
Succession planning
Succession planning is a core component of the
Company’s people agenda. The Committee
reviews the effectiveness and adequacy of
succession planning processes and the
succession plans for the Board, the GMT and
Heads of Functions, as well as wider workforce
planning for certain roles including regional
Managing Directors. Consideration is given to
the length of tenure of each incumbent with the
aim to proactively anticipate potential changes
and address vacancies proactively to ensure
smooth succession.
As part of the development of senior individuals
below Board level, these individuals are given
opportunities to attend Board meetings to present
on specialist topics, project work and divisional
performance. This provides valuable exposure
for individuals while also enabling the Board and
Committee to gain assurance on the strength and
depth of leadership being developed across the
business. During 2025, a number of individuals
were invited to present to the Board on topics
including health, safety and the environment,
customer service, sales and marketing,
production and sustainability.
Succession planning is owned locally by
the Divisional Chairs, Managing Directors
and regional business management teams,
who are responsible for building and sustaining
strong leadership pipelines within their
respective divisions.
They are responsible for identifying and
sponsoring potential succession candidates in
the short, medium and long term, embedding
development into day-to-day leadership. The
Committee has visibility of this talent pipeline
and oversees the development of potential
successors, reviewing the programmes in place to
ensure they remain aligned with the succession
plan. During the year, the Committee received
a detailed overview of the development support
offered to senior employees across the business
and provided input into programmes designed
to accelerate the development of individuals
identified as potential successors.
At Taylor Wimpey we have clearly defined career
paths and development programmes which
enable career advancement for all. The
Committee has oversight of the development
programmes on offer across the business, which
includes our functional academies, successor
to director development programmes across
all functions and aspiring managing director
programme. The launch of our Learning
Management System this year has enabled us to
refresh all development offerings, ensuring they
are fit for purpose, engaging and relevant.
The Committee is supported in its work by
Divisional talent meetings which regularly review
succession plans and related development
requirements across roles within the Company.
This clear ownership of the people agenda by the
Divisional Chairs, Managing Directors and local
regional business management teams, combined
with well-defined career paths and targeted
development, is a key contributor to the
Company’s strong retention levels and depth
of internal talent.
Contingency planning
During 2025, the Committee reviewed the
Company’s contingency cover to ensure that
the Company can respond to the unforeseen
unavailability of any member of the Board, GMT or
other senior roles, without impacting the current
and long term performance of the Company.
Following this review, the Committee was
confident that all key roles have an appropriate
contingency plan in place.
115
Financial statements
Shareholder information
Strategic report
Directors’ report
Year 3 – 2025
Internally
facilitated
Year 1 – 2023
Externally
facilitated
Year 2 – 2024
Internally
facilitated
Board performance review
The Board undertakes a formal and rigorous review of the
performance of the Board, its Committees, the Chair and
individual Directors on an annual basis. It provides an opportunity
to consider and reflect on the effectiveness and quality of the
Board’s decision making, and for individual Directors to consider
their own performance and contribution.
In line with the 2024 Code, the Board has adopted a three-year performance review cycle under
which the Board performance review is externally facilitated at least every three years. The most recent
externally facilitated performance review took place in 2023, with the next scheduled for 2026.
The Board performance review conducted in 2024 was internally facilitated and the Committee is
satisfied with the progress made against the actions identified as part of last year’s review. Further
information can be found in the table below.
2024 recommendations
Actions taken in 2025
Agenda structures
to be reviewed to
ensure there is the right
balance of routine and
forward-looking items
The Chair, Chief Executive and the Group General Counsel and Company
Secretary structured agendas to ensure that there are sufficient forward-looking
items on the agenda. The 2025 Board performance review feedback confirmed
that there has been a demonstrable improvement in the balance between
strategic debate and operational reviews.
Management and the
Board to be aligned on
the topics which require
early and reasonably
full discussion
Feedback from the 2025 Board performance review noted that an improvement
in this area had been seen during the year.
Offer institutional
investors the opportunity
to meet with the Chair
The Chair offered the top 20 institutional investors with the opportunity to meet
with him in March 2025. A further Chair roadshow will be offered to shareholders
holding 1% or more of the Company’s shares during 2026.
Nomination and Governance Committee report continued
Taylor Wimpey plc
Annual Report and Accounts 2025
116
• The Group General Counsel
and Company Secretary
submitted a proposal to the
Committee to undertake the
Board performance review by
way of a questionnaire and an
opportunity to meet with the
Group General Counsel and
Company Secretary to provide
additional feedback if required
• Committee members
discussed the proposal and
minor amends were made
following the discussion
• The questionnaire, which
sought feedback on six
areas of focus, was sent to
each Director
• A separate questionnaire was
sent to members of senior
management who regularly
engage with the Board and
its Committees
• The Group General Counsel
and Company Secretary
collated the feedback and
anonymised the data
• The Senior Independent
Director led a discussion on
the Chair’s performance,
based on the feedback
provided on the Chair,
without the Chair present
• The non-attributable feedback,
other than feedback relating to
the Chair, was shared with the
Chair who led a discussion at
the October Board meeting
• Following a discussion at the
Board’s December meeting,
an action plan was agreed
Stage 1: Board
performance scope
Stage 2: Board
performance
methodology
Stage 3: Findings
and actions
Nomination and Governance Committee report continued
The 2025 Board performance review was
internally facilitated by the Chair, with assistance
from the Group General Counsel and Company
Secretary, and the diagram to the right provides
an overview of the process followed.
The scope of the questionnaire focused on the
following themes:
•
Board leadership:
leadership, strategic
oversight, culture, Board composition and
succession planning
•
Strategy, culture and purpose:
strategic
focus, use of Board time, cultural insight and
alignment with the Company’s purpose
•
Board composition and succession
planning:
mix of skills, diversity, capacity
and effective succession planning
•
The Committees:
effectiveness of the
Committees and their Chairs
•
Stakeholder engagement:
effectiveness of the
stakeholder engagement mechanisms in place
•
Board support:
meeting arrangements,
Secretariat support and the Board processes
which enable Directors to perform their
roles effectively
Board performance insights
The Board performance review concluded that
the Board continues to operate effectively and
that governance at Taylor Wimpey remains strong.
The review included an assessment of the
performance of individual Directors, and Directors
noted a high level of openness and constructive
dialogue between the Executive and Non
Executive Directors, with a continued commitment
to further strengthen this dynamic in 2026.
The outcome of the performance review was that
the Board is working well as a collective, with
members actively participating in discussions and
bringing a broad range of skills, knowledge and
experience, supported by an increased emphasis
on strategic debate and sustained positive
engagement across key areas.
It was recognised that the Chair and Chief
Executive continue to work together effectively,
the Non Executive Directors provide valuable and
balanced challenge, and each Committee has
the requisite skills, knowledge and experience,
with Committee Chairs operating effectively in
their respective roles.
Directors confirmed that they have a clear
understanding of the concerns and expectations
of the Company’s key stakeholders and that
these are consistently taken into account during
Board discussions. Some areas for further
enhancements were identified and the Board
developed an action plan designed to address all
the actions and drive continuous improvement.
The plan is expected to be fully implemented by
the end of 2026. Further information can be found
in the table on the right.
2025 recommendations
Initial progress/planned actions
Continue to streamline papers
and agenda items, with greater
use of dashboards.
Conduct a review of standing agenda item papers to ensure
consistency and completeness, and increase the use of
dashboards for improved reporting.
The Board to have more opportunities
to horizon scan during the year.
An additional item called ‘Strategy Topic/Horizon Scanning’
has been added to the Board’s annual plan for April and May,
to complement the off site meeting in September.
Ensure that there is sufficient education
of the Board on emerging risks,
technologies and governance trends.
Three teach-ins have been scheduled during the year and
will be used to cover key topics.
117
Financial statements
Shareholder information
Strategic report
Directors’ report
Nomination and Governance Committee report continued
Diversity
Gender and ethnicity representation as at 31 December 2025
Gender diversity
Number of
Board
members
Percentage of
the Board
Number of
senior
positions on
the Board
Number
in executive
management
(a)
Percentage
of executive
management
Men
5
55.6%
3
6
75%
Women
4
44.4%
1
2
25%
Other categories
–
–
–
–
–
Not disclosed/
prefer not to disclose
–
–
–
–
–
Ethnic diversity
Number of
Board
members
Percentage of
the Board
Number of
senior
positions on
the Board
Number in
executive
management
(a)
Percentage of
executive
management
White British or other white
8
88.9%
3
6
75%
Mixed/multiple ethnic groups
–
–
–
–
–
Asian/Asian British
1
11.1%
1
2
25%
Black/African/Caribbean/
Black British
–
–
–
–
–
Other ethnic group including Arab
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
(a) The most senior executive committee at Taylor Wimpey is the GMT. The figures in the table above are reported as at
31 December 2025 and do not include Ingrid Osborne or Maria Sebastian, as Ingrid Osborne stood down from the
GMT on 31 December 2025 and Maria Sebastian was appointed on 3 February 2026.
Board and senior
management diversity
As at 31 December 2025, our chosen reference
date, Taylor Wimpey confirms it has met the
targets set out in UK Listing Rule 6.6.6R (9).
In accordance with this rule, the role of Chief
Executive is held by a female. In accordance with
UK Listing Rule 6.6.6R (10), the composition of
the Board and GMT, the most senior executive
committee at Taylor Wimpey, is set out in the table
on the left. Since 31 December 2025, there have
been two changes to the GMT, Ingrid Osborne
stepped down on 31 December 2025, and Maria
Sebastian was appointed on 3 February 2026.
Diversity at Board level is supported by the
Board Equality, Diversity and Inclusion Policy
which specifically applies to the Board and its
Committees and supports the Company’s wider
approach to diversity. This Policy is available on
our website.
The Board fully supports the FTSE Women
Leaders Review target of 40% female
representation on the Board and the leadership
team by 2025. The definition of leadership team
includes our GMT and their direct reports,
excluding administrative staff, so differs from
the data included in the table on the left.
While we are pleased to report that we have
exceeded this target in relation to our Board
membership, we recognise that further progress
needs to be made in relation to female
representation in our leadership team,
which was 27% as at 31 December 2025.
To improve representation at this level, we are
focusing on broader recruitment channels, diverse
candidate longlists and a tailored development
programme to support our females to progress.
In 2025, the Audit Committee approved PwC’s
appointment to perform limited assurance
procedures on 14 ESG-related datapoints,
an increase from four in 2024. Assurance will
continue to cover female representation within
the GMT and its direct reports, as well as ethnic
representation within the same group. Further
information on this can be found on page 50.
The Board also fully supports the Parker Review’s
recommendation to have at least one ethnic
minority director on the Board and is pleased to
confirm compliance with this recommendation.
Diversity remains a key consideration during
recruitment and will continue to be referenced
in all search and recruitment processes at
Board level. Further information on how this is
considered during Board recruitment and
appointment processes can be found on
page 114.
Taylor Wimpey plc
Annual Report and Accounts 2025
118
Equality, diversity and
inclusion (ED&I)
ED&I remains a key priority for the Board, and
across the Company as a whole. Our ED&I
strategy continues to be focused on three key
strategic pillars:
•
21st century leadership
– ensure that line
managers understand their role in developing
a more diverse and inclusive culture and have
the relevant training and support to achieve this
•
Employer of choice
– ensure that our
working environment, policies, procedures and
development and progression opportunities
support greater diversity and inclusion,
including wellbeing
•
Expanding our reach
– develop broader
recruitment channels, understand and embrace
the diversity of our customers and workplace
and improve our engagement with them
The Committee received two ED&I updates during
the year which provided an overview of our key
ED&I initiatives in the year, including our employee
networks. As part of our push on ED&I and ahead
of any requirement to do so, we are pleased to
confirm that we now have both a menopause
and disability action plan in place. Both plans
focus on ensuring the appropriate training, culture,
engagement, policies and practices are in place
and that our employees are aware of these.
The Board reviewed and approved our third
Diversity and Inclusion Report, which will shortly
be available on our website. In addition to detailed
information about the Company’s employee
diversity policies, practices and progress, this
report also sets out the Company’s aspirational
gender and ethnicity targets for the GMT and their
direct reports, regional business leadership roles,
early entry talent graduates, management trainees
and apprentices.
Further details on our ED&I initiatives can be found
in the Strategic report on pages 42 and 43.
Diversity data collection
Our diversity data is collated through our
HR management system. We encourage
all employees to self-report information such as
gender, gender identity, ethnicity, age, sexual
orientation and disability, and include the option
to ‘prefer not to say’.
Nomination and Governance Committee report continued
A
A
27%
female representation in GMT
and direct reports (%)
5.6%
ethnic representation in GMT
and direct reports (%)
24%
female representation in
early entry talent – graduates (%)
24%
ethnic representation in early
entry talent – graduates (%)
A
This metric was subject to external independent limited
assurance by PricewaterhouseCoopers LLP (PwC).
Read more on page 50.
119
Financial statements
Shareholder information
Strategic report
Directors’ report
Audit Committee report
Committee members
and meeting attendance
3
Number of Committee
meetings held during 2025
Meeting attendance
1. Scilla Grimble (Chair)
3/3
2. Mark Castle
3/3
3. Martyn Coffey
(a)
2/3
(a)
Martyn was unable to attend the meeting held on
25 February 2025. He had advised the Chair and
Group General Counsel and Company Secretary
of his unavailability on this date prior to his
appointment in December 2024.
The Chair, Chief Executive, Group Finance Director,
other Non Executive Directors, Group General
Counsel and Company Secretary, members of
the Company Secretariat team, Group Financial
Controller, Head of Internal Audit, Head of Tax,
Head of Group Reporting, IT Director and the
external Auditors generally attend Committee
meetings by invitation. Senior finance and business
managers are invited as required to report on
specific topics.
Dear shareholder,
On behalf of the Audit Committee (the
Committee), I am pleased to present our
report for the year ended 31 December 2025.
The Committee has continued to assist the Board
in fulfilling its corporate governance responsibilities
by providing oversight of the Group’s financial
reporting processes and its systems of internal
control and risk management. The Committee
also oversees the performance of the internal
and external auditors.
Internal control framework
The Committee has continued to oversee
preparations to comply with Provision 29 of the
2024 Code. This concerns the Group’s risk
management and internal control framework and
requires the Board to provide a declaration of
effectiveness of the material controls in the
Annual Report and Accounts 2026. You can
read more about the work we have undertaken
on pages 122 and 123.
ESG metrics
This year, the Committee approved proposals to
extend the scope of PwC’s work to provide limited
assurance over a total of 14 ESG-related metrics
(2024: four metrics) across health and safety,
diversity and inclusion, waste, timber frames and
carbon-related disclosures. This move helps to
prepare for anticipated changes to sustainability
reporting requirements and ensures we are
applying the benchmark assurance standard
adopted by our peers for non-financial
disclosures. We will consider the scope of
assurance for 2026 in light of the requirements
of the UK Sustainability Reporting Standards.
Financial Reporting Council
(FRC) letter
The Committee considered a letter received
from the FRC following a limited-scope review of
the Company’s interim report for the half year
ended 29 June 2025. The Committee and
management welcome the FRC’s drive for
continuous improvement in the quality of financial
reporting and I am pleased to confirm that,
although they set out some observations for
our attention, the FRC had no specific queries
that they wished to raise with us following their
review. The observations made by the FRC in
their letter, which they believe could enhance
existing reporting, have been taken into
consideration in the preparation of this
Annual Report and Accounts.
“The Committee has balanced
continued oversight of financial
reporting with monitoring the
business’s evaluation of the
effectiveness of the Group’s
risk management and internal
control framework.”
Scilla Grimble
Chair of the Audit Committee
Taylor Wimpey plc
Annual Report and Accounts 2025
120
Audit Committee report continued
Purpose and responsibilities
The Committee’s purpose and responsibilities
are set out in its Terms of Reference, which are
available on our website. The Terms of Reference
are reviewed annually to make sure they
remain appropriate.
The main focus of the Committee’s work each
year is on:
• Ensuring the integrity of the financial and
narrative reporting
• Monitoring the Group’s systems of risk
management and internal controls
• Reviewing the effectiveness of internal and
external audit processes
We reviewed our activities in 2025 against the
Terms of Reference and confirmed that we have
discharged our responsibilities in accordance
with them.
Internal and external audit
We held individual meetings with the external
Auditors and the Head of Internal Audit without
management present. These meetings provide
a valuable opportunity for further discussion and
of matters within the Committee’s remit and any
issues arising from the internal and external
audits. As a Committee we have assessed the
effectiveness of the internal and external audits
and were satisfied with the performance of
both. Further information about how these
assessments were carried out can be found
on pages 124 to 126.
Business continuity
management and technology
In 2025 the Committee also reviewed the
progress of key projects in two overlapping areas,
business continuity management and technology.
We received updates from the Head of Internal
Audit about a project to further strengthen the
effectiveness of the Group’s business continuity
management processes. This included a crisis
simulation event, as described in the cyber
resilience section on page 125.
We also considered the progress of key
implementation and assessment projects across
a range of IT services, including projects focused
on digitising our business processes, along with
data and artificial intelligence capabilities. We also
received regular updates from the Group IT
Director about continuous incremental
improvements to our cyber defences.
Areas of focus
In addition to fulfilling our responsibilities under
the Committee’s Terms of Reference, each year
we agree areas of focus which are designed to
strengthen the Group’s overall control framework.
Our progress against the 2025 areas of focus is
set out in detail on page 122. Our agreed areas of
focus for 2026 are:
• Oversee the Group’s preparedness for
compliance with the UK Sustainability Reporting
Standards and the Directors’ declaration on the
effectiveness of material controls under Provision
29 of the 2024 Code
• Gain assurance that the Group’s use of artificial
intelligence operates within a clearly defined
governance and risk management framework,
and provide oversight of the continuous
strengthening of cyber security and resilience
• Oversee the External Quality Assessment of
Internal Audit to ensure conformance with the
updated 2025 Global Internal Audit Standards
and to strengthen the assurance maturity of
the function
We continue to have a busy programme of work
and, in recognition of the importance and
complexity of the Committee’s role and the
increase in its workload over time, from 2026
we will move to holding four scheduled
Committee meetings a year.
Scilla Grimble
Chair of the Audit Committee
4 March 2026
Membership and meetings
All Committee Members are independent Non
Executive Directors. Scilla Grimble, Chair of the
Committee, is considered by the Board to have
recent and relevant financial experience. The
Committee collectively has competence relevant
for the homebuilding sector and the Committee’s
composition, balance, and expertise can give
shareholders and other readers of the Annual Report
and Accounts confidence that the financial reporting,
internal and external auditing, risk, and control
processes of the Group are subjected to the
appropriate level of independent, robust and
challenging oversight. Biographical details of
Committee Members appear on pages 93 and 94.
The Committee met three times in 2025. While this
is in line with the guidance to the 2024 Code, in
recognition of the importance and complexity of the
Committee’s role and the increase in its workload
over time, from 2026 the Committee will hold four
scheduled meetings a year.
At the end of each meeting, Committee members
hold private discussions with the Head of Internal
Audit and the external Auditors separately, without
management present. The Committee Chair
regularly holds separate one-to-one meetings with
the Group Finance Director, the Head of Internal
Audit and the external Auditors outside of
scheduled meetings to better understand any
issues or areas for concern.
Key activities in 2025
• Reviewing the cladding fire safety provision,
resulting in the provision being increased by
£225.8 million to reflect intrusive investigations
being completed, tenders being received,
increased engagement with chartered
fire engineers and updated evaluations
of buildings that had not yet undergone
intrusive assessments
• Progressing the Committee’s 2025 key areas
of focus. Read more about this on page 122
• Ongoing preparations for the additional
reporting requirements under Provision 29
of the 2024 Code
Committee performance
The 2025 Board performance review confirmed
that the Committee has the necessary skills,
knowledge and experience, and that the
Committee Chair continues to lead the
Committee effectively.
More details about the Board performance review
process and outcome can be found in the
Nomination and Governance Committee report
on pages 116 and 117.
121
Financial statements
Shareholder information
Strategic report
Directors’ report
Audit Committee report continued
The Committee’s
key areas of focus
Update on the 2025
key areas of focus
In addition to its ongoing
responsibilities under the Terms
of Reference, each year the
Committee identifies additional
key areas of focus. These
priorities are chosen to help
the Committee to focus on
the steps being taken to
strengthen the selected
aspects of the control
framework. An update on our
work on the 2025 key areas of
focus is provided to the right:
Monitor the Group’s preparedness to comply
with any new reporting requirements as
a result of the Corporate Sustainability
Reporting Directive (CSRD), and other future
ESG-related disclosure requirements
We began 2025 expecting our Spanish operations to
be in scope of the CSRD reporting requirements from
the December 2025 year end, with the Group in
scope from the December 2028 year end, although
these timings were not certain as CSRD had not, and
still has not, been transposed into Spanish law.
In this context, the business continued to progress
the necessary work to prepare for compliance with
the CSRD. In February 2025 the Committee received
a detailed update on those preparations, which
included an externally-facilitated Double Materiality
Assessment designed to determine the scope of
reporting required in Spain. The Committee received
further updates on the progress of the EU’s
proposals on CSRD at its July and December
meetings which highlighted the extension of
reporting deadlines and proposals to simplify the
requirements. As a result of these developments,
it now seems less likely that we will fall within the
scope of CSRD but we will continue to monitor
developments as the remaining legislative steps
are taken.
The Committee also considered updates on future
non-financial reporting requirements in preparation
for the anticipated introduction of UK Sustainability
Reporting Standards.
Oversee the implementation of agreed
enhancements in response to the 2024 Code
Throughout 2025 the Committee received regular
updates to monitor and assess the preparedness of
the business to comply with the requirements of the
2024 Code, in particular Provision 29, which applies
for the Group’s financial year commencing on
1 January 2026.
A full update on the corporate governance reform
project was provided to the Committee at its July
meeting, with a further update given in December as
the project reached its conclusion. The Committee
was satisfied both that the project had identified
an appropriate set of material controls and with
the outcome of the dry run assessment of the
effectiveness of the material controls. The Committee
will continue to oversee progress in this area as the
agreed testing regime is implemented.
Gain assurance that Innovate
TW
projects are
progressed through a robust framework
The Committee received updates in July and
December from the Head of Internal Audit outlining
the actions taken during the year. These included a
review of the design adequacy of the governance
arrangements supporting Innovate
TW
projects and an
assessment of the operational effectiveness of the
arrangements. In addition, the Committee received
regular reports from the IT Director on the status of
key IT projects. During 2025, Innovate
TW
projects
continued to operate within the established
governance framework, under the oversight of
the IT Steering Committee.
The Committee also discussed the review of the
Group IT Control Framework performed by Internal
Audit. The Committee was satisfied with the
progress being made and will continue to review
cyber and data security, IT general controls and
resilience process on an ongoing basis.
Taylor Wimpey plc
Annual Report and Accounts 2025
122
Audit Committee report continued
Internal control framework
The overall structure of the Group’s internal controls and assurance processes are as set out below:
Internal controls and
risk management
The Committee has delegated responsibility from
the Board for reviewing the effectiveness of the
Group’s systems of internal control, which include
financial, operational and compliance controls and
risk management systems. This section of the
report sets out the additional oversight provided
by the Committee on the Group’s risk
management and internal control systems.
Internal Audit
Internal Audit’s primary role is to provide
independent and objective assurance over the
Group’s risk management, governance and
internal control processes, designed to add value
and improve the organisation’s operations. The
Head of Internal Audit reports to the Committee
Chair with a secondary reporting line to the Group
Finance Director. These reporting arrangements
protect the function’s independence. The Head of
Internal Audit has regular direct contact with the
Chair of the Board, the Chief Executive and other
senior management, as required.
The purpose, authority and responsibilities of the
Internal Audit function are Group-wide and are
formally defined in the Internal Audit Charter
(the Charter), which is regularly reviewed and
approved by the Committee. The Charter is
available on our website. Reviews conducted
by Internal Audit in 2025 considered financial,
operational and compliance controls.
•
The Board is supported by the Audit Committee, which makes recommendations on delegated matters related to financial reporting, risk management,
and internal control
• The Board retains responsibility for monitoring whistleblowing matters
•
The Audit Committee oversees the Board’s formal arrangements regarding the integrity of financial and narrative reporting for the Group, the independence and
effectiveness of internal and external audit functions, and the effectiveness of internal controls and the risk management framework
•
The Audit Committee has overseen preparations for the introduction of Provision 29 of the 2024 Code and its focus will now be on assisting the Board with
monitoring and reviewing all material controls, including financial, operational, reporting and compliance controls, as the agreed testing regime is fully implemented
in 2026
Operating framework
Detailed process manuals
GMT
Internal Audit
Audit Committee
The Board
•
Primary source of the Group’s system of internal control for
business operations
•
Gives wider assurance over the financial and non-financial information
produced around the Group
• Approved by the GMT
•
Subject to regular review and updates by the GMT to ensure it remains
appropriate, with any significant proposed amendments independently
assessed by Internal Audit
•
Includes clear levels of delegated authority, responsibility and accountability
• Available on our intranet for all employees
•
Relating to the operation of the main functions of the Group
•
Support the Operating Framework at a more granular level of detail
•
Consider and, if appropriate, approve matters requiring prior approval
under the Operating Framework
• Monitor adherence to the Operating Framework and detailed
process manuals
• Independently assess appropriateness of, and compliance with,
the Operating Framework and detailed process manuals
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Directors’ report
Audit Committee report continued
Internal Audit is subject to an independent
external assessment at least once every five
years. The most recent assessment was
completed in 2021, and therefore the next
assessment is scheduled for 2026. In line with the
Global Internal Audit Standards and the Code of
Practice for Internal Audit in the UK and Ireland,
the Head of Internal Audit undertakes an annual
self-assessment of the function’s practices and
has confirmed to the Committee that Internal
Audit continues to operate in conformance with
these standards.
The Committee reviews the effectiveness of
Internal Audit annually. In 2025, as part of the
review, the Committee satisfied itself that the
quality, experience and expertise of the Internal
Audit function remains appropriate for the
business. In addition, the Committee was satisfied
that the Head of Internal Audit remains free from
operational responsibilities that could compromise
independence or objectivity.
Internal Audit workplan
The Committee approves the Internal Audit
workplan and monitors progress against it at each
meeting. The workplan is designed to deliver a
balanced set of reviews that are responsive to
known risks and priorities across the Group and
which provide an appropriate level of assurance
to allow conclusions to be reached on the
strength of the Group’s overall control framework.
In establishing the workplan, Internal Audit
undertakes a half-yearly risk assessment. This
considers key business risks including financial,
commercial, people and customer risk indicators.
After each review, the resulting Internal Audit
report is provided to the management team
responsible for the area reviewed, the GMT and
the external Auditors. These reports set out
Internal Audit’s opinion of the management control
framework in place, together with agreed actions
where the need for improvements has been
identified. The Committee receives and considers
a summary of all Internal Audit reviews and other
key Internal Audit activities. The Head of Internal
Audit also advises the Committee whether there
are any issues or findings of significance to the
Group as a whole. The Chief Executive, the GMT
and senior management are responsible for
ensuring that improvements are made as agreed.
A database of the agreed actions is maintained by
Internal Audit and the established follow up and
escalation processes ensure that actions are
completed in a timely manner.
The Committee is satisfied that Internal Audit has
the appropriate resources to deliver its workplan.
Group Assurance Map
A Group Assurance Map provides the Committee
and the Board with a summary of the three lines
of assurance, namely management, oversight
function and Internal Audit. Assurance is mapped
against our key risks and is based on a
comprehensive and shared view as discussed
with appointed risk owners, together with Heads
of Function and others who have key oversight
responsibilities. This then enables the Committee
and the Board to identify and confirm their
assurance needs and any actions required
to fulfil those needs. The Head of Internal
Audit coordinates this process and updated
the Committee at its July 2025 and March
2026 meetings.
In 2025, we reviewed the Group Assurance Map,
taking into account benchmarking against peer
organisations. The opportunity was taken to
refresh the design but it was concluded that no
substantive changes to the Group Assurance
Map were required.
Risk management
The Committee is responsible for reviewing our
system of internal controls and risk management
and overseeing the effectiveness of our risk
management processes. This includes making
recommendations to the Board about the Group’s
risk appetite and monitoring how each regional
business and key function is actively managing
its risks and mitigations in accordance with the
risk appetite approved by the Board. Details of
the Group’s risk management processes
can be found in the Strategic report on
pages 68 to76.
The Committee’s objectives in relation to risk are:
• To ensure the Group’s risk profile remains
within agreed risk appetite and tolerance
levels and is adequately monitored and
reviewed as appropriate to reflect external
and internal changes
• To ensure compliance with the 2024 Code
provisions concerning internal controls over
financial, operational and compliance reporting
• To continue to develop the Group’s risk
processes in light of evolving best practice
• To consider emerging risks that could impact
on the Group’s longer term strategy
Cyber security
Recognising the evolving threat landscape, as a
business, we have deployed resources to further
enhance our cyber defences and resilience. Our
monitoring and analysis of security events have
been expanded and refined. Additionally, we have
implemented advanced behavioural analytics tools
to increase protection against malicious emails
for our users. Cyber security training remains
a priority, with robust compliance efforts in
partnership with our Internal Audit team. This year,
we also conducted an additional third-party
Mitre Att&ck assessment; while no critical issues
were identified, we are addressing all
recommendations accordingly.
Taylor Wimpey plc
Annual Report and Accounts 2025
124
Audit Committee report continued
Cyber resilience
A Principal Risk area identified by the Board is the
potential vulnerability of the Group’s IT systems to
the various forms of cyber attack and a key area
of focus for the Committee during 2025 was
continuing to ensure that the IT operating
environment remained robust, and improved in
line with current expectations.
Internal Audit is represented on key project teams
in the business, including the Head of Internal
Audit attending the IT Steering Committee
meetings. Internal Audit is responsible for
business continuity processes and has delivered
the second phase of the business continuity
improvement programme. This included an
externally facilitated crisis simulation event in
November 2025. This event was attended by key
members of the senior management team, the
Group Business Continuity team and members of
the IT leadership team. The Committee received a
high level update about the event at its December
2025 meeting. A more detailed update will be
provided to the Committee in 2026.
In 2025, a range of improvements occurred:
• Implemented additional behavioural
analytics tools to further protect our users
from malicious emails
• Expanded the external feedback that we
receive to continue to strengthen our cyber
security posture
• Widened our scanning, attack and threat
detection capabilities across our IT estate
Key developments planned for 2026 include
further enhancements to our cyber security tooling
and controls across our IT landscape, and a
continued focus on business continuity planning
and embedding lessons learnt.
The Committee receives updates on the progress
of key projects throughout the year.
External Auditors
Tenure
PwC has served as our external Auditors since their initial appointment in 2021 and have now
completed their fifth Group audit. Further details are provided below:
Last tender
July 2019 to May 2020
First shareholder approval of current auditor
April 2021
First audited Annual Report and Accounts
Year ended 31 December 2021
New Group Engagement Partner
2026
Next audit tender required by regulations
2030 (for year ending 31 December 2031)
As the Committee continues to be satisfied with PwC’s performance, we do not currently plan to
tender the external audit contract before the end of the required period of 10 years stated above.
We consider this to be in the best interests of shareholders and are satisfied that PwC remains
independent and objective.
Audit partner transition
The 2025 year end audit was PwC’s fifth for Taylor Wimpey and Sonia Copeland has been the
Group engagement partner throughout. Jonathan Sturges will take over as Group engagement
partner for the financial year ending 31 December 2026. The Committee is satisfied with PwC’s
arrangements for transition of the audit partner, which will help to ensure a smooth handover
and maintenance of the effectiveness of the audit process in 2026.
125
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Shareholder information
Strategic report
Directors’ report
Audit Committee report continued
Audit effectiveness
The relationship with PwC is well established and
the Committee is satisfied with the effectiveness
of the overall external audit process. PwC’s
performance has been kept under regular review
by the Committee and reported to the Board
as appropriate.
The Committee received a comprehensive audit
plan from the external Auditors setting out the
proposed scope and key audit matters, as well
as their assessment of the key areas of risk.
During the course of the audit, the Committee
noted that the external Auditors challenged
management in a number of areas. Particularly
on the areas below, PwC challenged, amongst
other things, estimation methodologies, basis
for assumptions and management’s judgements
and assertions:
• Margin recognition and site forecasting
• Cladding fire safety provision
In relation to each of these judgements, the
external Auditors confirmed that the approach
adopted by management in accounting for these
in the financial statements was appropriate.
Each year a full evaluation of the external
Auditors’ performance is performed. The process
in respect of the review of the 2024 year end audit
was as follows:
• A questionnaire was distributed to the Board
and key stakeholders in the audit process to
evaluate the effectiveness of the external
audit process
• The Committee considered the nature and
extent of the non-audit work performed by
PwC during the year
• The Committee considered whether PwC had
appropriately challenged management’s
estimates and judgements
• The Committee reviewed the latest external
report on PwC issued by the FRC
• The Committee considered whether PwC
showed an appropriate level of challenge and
scepticism in their work. An example of PwC’s
challenge and professional scepticism, as noted
by the Committee, was their detailed review and
challenge regarding the increase in the cladding
fire safety provision recognised in the year
Overall, the results of the evaluation confirmed
that the external audit process is effective and the
quality and sufficiency of resources provided by
the audit engagement team remains appropriate.
The Committee welcome the external Auditors’
clear reporting at each meeting and that the
audit team demonstrate a strong understanding
of the business.
Based on this evaluation, the Committee
recommended to the Board, which in turn is
recommending to shareholders in resolution 15
at the 2026 AGM (in the Notice of AGM on
page 234), that PwC should continue as
external Auditors to the Company.
The Company will of course keep the matter of
audit effectiveness under regular review, taking
into account the annual performance review to
be conducted by the Committee in 2026.
The Committee’s recommendation on the
re-appointment of the external Auditor is free
from influence by a third party and there are no
contractual or similar obligations which restrict
the Group’s choice of external Auditor.
Independence and objectivity
In addition to the annual review of the
effectiveness of the external Auditors, the
Committee considered and monitored their
independence and objectivity through reviewing
PwC’s annual independence letter; regular
meetings held directly between the external
Auditors and the Committee; and ongoing review
of the Group’s External Auditors Non-Audit
Services Policy, and any services provided by
PwC in connection with that policy. No issues
were raised with regard to PwC’s independence
and objectivity.
Non-audit services
The Committee has, and regularly reviews,
a formal policy on the provision of non-audit
services by the external Auditors. The overall
objective of the policy is to ensure that the
provision of non-audit services does not impair the
Auditors’ independence or objectivity. In line with
the 2024 Code, the Committee has regard to the
relevant ethical guidance regarding the provision
of non-audit services by PwC.
The policy limits the payment for non-audit
services to no more than 70% of the average fee
paid in the last three consecutive financial years
for the Group audit. All non-audit services
provided by the external Auditors are subject to
prior approval by the Committee. A report detailing
all approved non-audit services is presented at
each Committee meeting to help the Committee
to monitor compliance against the policy.
PwC undertook non-audit services in the year in
relation to:
• Assurance work carried out in connection with
the review of the interim statements
• Non-audit limited assurance procedures over
14 select ESG metrics
• Making available access to its subscription
service providing online technical resources
such as factual updates and changes to
applicable law, regulation, and accounting and
auditing standards
• Providing reports for the Spanish authorities,
which are required to come from the
subsidiary’s external Auditors, to support
applications for property taxes available for land
under development
Total non-audit fees for 2025 were £0.2 million
(2024: £0.2 million), representing 15%
(2024: 17%) of the annual audit fee. Further details
of the audit and non-audit fees incurred by the
Group can be found in Note 6 on page 188.
Audit Committees and the External Audit:
Minimum Standard
The Audit Committee report describes how the
Committee has followed the provisions of the
FRC’s Audit Committees and the External Audit:
Minimum Standard in 2025. An explanation of the
Group’s accounting policies is given on pages 178
Taylor Wimpey plc
Annual Report and Accounts 2025
126
Audit Committee report continued
to 184. There were no shareholder requests for
certain matters to be covered in this year’s audit.
Statement of compliance
The Company has complied throughout the
reporting year with the provisions of The Statutory
Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive
Tender Processes and Audit Committee
Responsibilities) Order 2014.
Going concern
The Committee reviewed the forecasts prepared
by management at the half year and year end,
taking account of the Principal Risks and
Uncertainties described on pages 72 to 76.
The Committee asked questions of management
about their assessment of the modelling, including
the downside scenario, forecast cash flows and
potential mitigating actions available. Read more
about our Principal Risks on pages 72 to 76.
The Committee considered management’s
assessment to be reasonable and recommended
to the Board that it adopt the going concern basis
of preparation of these financial statements.
Having independently considered the forecasts
and the Committee’s recommendation, the
Directors remain of the view that the Group’s
financing arrangements and capital structure
provide both the necessary facilities and covenant
head room to enable the Group to conduct its
business for at least 12 months from the date of
this report. Accordingly, the consolidated financial
statements have been prepared on a going
concern basis.
Viability statement
The viability statement is designed to take a longer
term view of the sustainability of the Group’s
strategy and business model and related
resourcing, in light of projected wider economic
and market developments. The Committee
considered the methodology, the outputs and
whether there should be any change to the
five-year period chosen for the statement.
The Committee also reviewed the Executive
Directors’ expectations, the criteria upon which
they were based and the sensitivities applied,
including how these linked to the Principal Risks
faced by the business and agreed that they were
reasonable. The outcome of this assessment was
that the Committee advised the Board, that in
their view, the Company can give the viability
statement incorporated into this Annual Report
and Accounts, and that the five-year period over
which it applied, continued to be appropriate,
taking into account the balance sheet strength
and confirmation from the Executive Directors that
this period continues to broadly align to the
development cycle for new land. The statement
appears on pages 82 and 83 together with
details of the processes, assumptions and
testing which underpin it.
Exceptional items
The Committee considered the disclosure of items
as exceptional in the year and noted that the
amounts recognised by the Group in respect
of cladding fire safety in exceptional items is
consistent with the recognition of such costs
Significant matters considered and addressed
in relation to the financial statements
The issues considered by the Committee to be the most significant (due to their potential impact on
the performance of the Group’s activities) in relation to the financial statements during the financial
year are set out below.
Significant matter
How the matter was addressed by the Committee
Margin recognition and
site forecasting
The cost allocation framework
used across the Group controls
the way in which the inventory is
costed and allocated across
each development.
It also ensures that any costs in
excess of the original budget
are recognised appropriately
as the site progresses.
The Committee reviewed reports and recommendations from the
GMT in relation to areas of the business recognising cost excesses,
and also reviewed the work undertaken by the external Auditors which
included testing of the Group-wide controls to monitor cost allocation.
The Committee carefully considered the judgements and assumptions
involved, challenging management where appropriate.
Following these reviews, together with enquiries of the GMT and
the external Auditors, the Committee concluded that there continued
to be appropriate systems and internal controls in place, which
ensured that consistent principles were applied; the treatment and
presentation on the income statement of the costs incurred by the
business were appropriate; and that the external Auditors agreed
with the conclusions reached.
Valuation of cladding fire
safety provision
The Company has entered into
legally binding agreements in
relation to defined remediation
commitments. Under these
agreements, the Company
pledged to bring all in scope
Taylor Wimpey apartment
buildings built since 1992
up to the standard required
by the PAS9980 guidance.
The Committee reviewed and challenged management’s assessment
of the costs to comply with these obligations. This included reviewing
the changes recognised in the first half of the year to the provision,
the drivers for the increase in the period and the methodology and
key assumptions applied.
The Committee also reviewed updates on the progress of the
rectification of buildings, together with utilisation and estimates of the
remaining provision. The external Auditors also provided their view on
the utilisation and estimations of the provision. The Committee was
satisfied that the provision represented management’s best estimate
of the expected remediation costs.
since the provision was first recognised. The costs
associated with the commitments made to
the CMA in relation to its information sharing
investigation were also reviewed by the
Committee and, due to their non-recurring nature
and being outside the normal operations of the
Group, the Committee agreed it was appropriate
to recognise them as an exceptional item.
127
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Shareholder information
Strategic report
Directors’ report
Audit Committee report continued
Fair, balanced and understandable
It is a key governance requirement that the Annual Report and Accounts, taken as a whole,
is fair, balanced and understandable and gives shareholders the information necessary for them
to assess the Group and Company’s position, performance, business model and strategy.
Taking a similar approach as in previous years, the Committee:
• Received feedback from Directors and
members of the senior management team as
work on the drafting of the Annual Report
and Accounts 2025 progressed to ensure
the key messaging in the narrative reporting
section was consistent with the performance
reported in the financial statements
• Received the external Auditors’ report,
which gave the view that there were
no material inconsistencies
• Challenged the significant financial
judgements and estimates made
by management
• Monitored the integrity of the Group’s
reporting process and financial management
and the work of the external Auditors
• Reviewed the overall presentation of
Alternative Performance Measures (APMs)
proposed by management to ensure the
APMs are not given undue prominence and
that any adjustments are explained clearly
• Reviewed the Annual Report and Accounts
and were satisfied that it presented a
consistent message throughout and
accurately reflected the Group’s position,
performance, business model and strategy
The outcome of the above process, together with the views presented by the external Auditors,
PwC, was that the Committee recommended to the Board that it could give the confirmation
on page 162, that the Annual Report and Accounts 2025, taken as a whole, is fair, balanced
and understandable.
Taylor Wimpey plc
Annual Report and Accounts 2025
128
Remuneration Committee report
Dear shareholder,
As Chair of the Remuneration Committee
(the Committee), I am pleased to present our
2025 Directors’ Remuneration Report on behalf
of the Board.
Directors’ Remuneration
Policy review
Background to the review
The current Policy was approved by shareholders
at our 2023 AGM, receiving a 92% vote in favour.
In line with UK regulatory requirements, a new
Policy will be put to a binding shareholder vote
at our 2026 AGM.
Since the last Policy was introduced, we have
delivered a robust performance against a
backdrop of challenging market conditions.
The business is strong and resilient, and well
positioned to deliver profitable growth and
maximise shareholder returns.
Our Executive Directors have led with a strong
focus on operational discipline and, despite
challenging market conditions, have delivered
a total shareholder return (TSR) of 33.4% in the
period from 1 January 2023 to 31 December
2025, compared to the average in our sector
of 14.8%. This TSR performance is also
underpinned by our differentiated Distribution
Policy, which pays out 7.5% of net assets
annually, or at least £250 million, throughout
the cycle.
Committee members
and meeting attendance
5
Number of Committee
meetings held during 2025
Meeting attendance
1. Lord Jitesh Gadhia (Chair)
5/5
2. Robert Noel
5/5
3. Mark Castle
5/5
4. Clodagh Moriarty
5/5
Purpose and responsibilities
of the Committee
• To establish and maintain formal and
transparent procedures for developing
policy on executive remuneration
• To set, monitor and report on the
remuneration packages of individual
Directors and senior management
• To review wider workforce remuneration
and other policies in accordance with the
2024 Code
“The Committee seeks to ensure
executive remuneration outcomes
are fair, support long term value
creation and reflect the views of
our shareholders.”
Lord Jitesh Gadhia
Chair of the Remuneration Committee
Key activities in 2025
• Consulted with shareholders regarding
the minority vote against the Directors’
Remuneration Report at the 2025 AGM
• Reviewed the Directors’ Remuneration
Policy (the Policy) ahead of its renewal
at the 2026 AGM and consulted with
shareholders on the proposed changes
• Determined the 2025 salary levels for the
Chief Executive, Group Finance Director
and senior management
• Agreed the targets applicable to the
2025 Executive Incentive Scheme
(EIS) and 2025 Performance Share
Plan (PSP) Awards
• Approved the outcomes for the 2024
EIS and 2022 PSP Award
• Reviewed wider workforce remuneration
arrangements to ensure they effectively
incentivise and drive performance across
the business
Committee performance
• The Committee discharged all
responsibilities outlined in its Terms of
Reference during the course of the year
• The 2025 Board performance review
confirmed that the Committee possesses
the necessary skills, knowledge, and
experience, and that the Committee Chair
continues to lead the Committee effectively
Quick links
133
Remuneration at a glance
135
Remuneration in the wider context
138
Directors’ Remuneration Policy review
148
Annual Report on
Directors’ Remuneration
157
Approach to remuneration in 2026
129
Financial statements
Shareholder information
Strategic report
Directors’ report
We have successfully returned over £1 billion to
shareholders during the current Policy period and
£2.8 billion under our Dividend Policy since 2018.
The Executive Directors have taken early and
proactive steps to ensure the business is optimally
positioned to capitalise on the significant
opportunities as and when the cycle turns. Their
efforts have resulted in a robust balance sheet,
a high-quality landbank, and an experienced
team across the business, placing us in a strong
position to deliver sustained growth and attractive
shareholder returns over the medium term and
throughout the next Policy period.
These medium term plans were set out at our
Investor and Analyst Update on 1 October 2025.
The Executive Directors and senior management
outlined how the business is structured to unlock
value, drive growth and maximise returns in
the next phase of the cycle. This included the
announcement of four medium term targets
based on current market conditions, with the
majority of progress expected to come from an
increase in outlets, rather than relying on improved
sales rates driven by greater affordability or lower
interest rates. Read more about our medium term
targets on page 14.
The Committee has reviewed the current Policy
in light of the context set out here, particularly
noting the following:
• The Chief Executive and Group Finance
Director have performed exceptionally well in
recent years, and are both now well established
within their roles. They are highly respected
across the business and in the wider sector,
and their skills and leadership have proven
invaluable in ensuring that we are strongly
positioned for success going forward.
• The EIS and PSP opportunities have been at
the same levels (150% and 200% of salary
respectively) since 2007 when Taylor Wimpey
was formed through the merger of Taylor
Woodrow plc and George Wimpey plc. These
opportunities have now slipped significantly
behind a mid-market level for the sector and
the FTSE more generally. In order to reflect their
performance and importance to the business,
the Committee believes it is crucial that the
Executive Directors’ incentive opportunities are
positioned appropriately against the market.
This is particularly important given their efforts
to ensure that the business is set up to benefit
from the opportunities available during the next
cycle in the housing market.
• The operational environment has become
significantly more challenging since 2020, with
increased regulation, labour shortages in skilled
trades, and environmental demands (including
the Future Homes Standard). The Executive
Directors have significant technical and
leadership skills, which means that we are well
prepared to meet the challenges of future
operational changes. This new Policy will
ensure that we are able to retain and attract
the right executive talent to lead the business.
• The business is experiencing internal pay
compression challenges below Board. The
current incentive opportunities are limiting
our ability to ensure appropriately leveraged
remuneration packages and differentiated
pay-for-performance, both for the Executive
Directors and for the wider GMT. Consequently,
we are concerned that this could lead to
increased talent attraction, retention, and
succession-planning risks in a very ‘hot’
industry talent market.
• The Committee is regularly updated on
workforce remuneration policies and practices.
We are reviewing remuneration for the other
members of the GMT, and the workforce more
widely, to ensure that the review of the new
Policy for Executive Directors is not undertaken
in isolation. We aim to offer competitive pay,
pensions and benefits packages to our
employees. We offer share-based long term
incentives for our most senior employees and
there is a strong alignment of incentive payouts
throughout the workforce.
Proposed Policy changes
Having conducted a detailed review, the
Committee has concluded that the overall EIS
and PSP structure continues to work well.
We are, however, proposing the following
targeted changes to ensure that the remuneration
packages fairly reflect our Executive Directors’
performance and calibre and remain competitive:
1.
Increases in maximum opportunities for the
EIS from 150% to 200% of salary and for
the PSP from 200% to 250% of salary
These increases would align the Chief Executive
with market median incentive opportunities
and the Group Finance Director with upper
quartile levels. The Committee considers this
positioning appropriate given the calibre,
experience and performance of both Executive
Directors, and believes they should continue to
have the same maximum opportunities as they
form a strong and complimentary leadership
team, with both individuals critical to delivering
the strategy. To reinforce our pay-for-
performance approach and reflecting recent
shareholder feedback, the higher EIS and
PSP opportunities will be accompanied by
appropriately stretching targets, ensuring that
maximum rewards are achievable only for
performance aligned to our medium term goals,
and the delivery of profitable growth while
maximising shareholder returns.
Remuneration Committee report continued
Taylor Wimpey plc
Annual Report and Accounts 2025
130
2.
Increase the amount payable for entry-level
performance under the EIS from 10% to
25% of maximum
Having reviewed the overall competitiveness of
our remuneration packages as well as market
practice (where 25% of maximum is typically
paid for this level of performance), we propose
to align with market practice.
3.
Increase the in-employment shareholding
guideline from 200% to 250% of salary to
match the new maximum PSP opportunity
This change ensures that the in-employment
guideline continues to foster a sense of
stewardship among our Executive Directors,
encouraging them to remain focused on the
long term sustainable success of the business.
The Committee considers that the proposed
targeted changes will ensure that our new Policy
appropriately reflects the experience and skills of
our Executive Directors, and that it incentivises
the successful delivery of our strategic goals and
longer term sustainable returns for shareholders
going forward. You can find more information
about the review process on pages 138 to 140,
including further rationale for the changes,
additional details on the consultation undertaken
with our largest shareholders, and the
benchmarking data that informed our review.
Executive Directors’
remuneration decisions
and outcomes in 2025
The Committee considered the EIS and PSP
outcomes in the context of the Group’s
performance during 2025.
As set out on pages 13 to 18, the business
delivered a robust performance in 2025 despite
challenging market conditions. We delivered
UK completions in line with guidance and were
pleased to once again retain our five-star
customer service rating. Our construction quality
performance also continued to strengthen, and
we achieved the highest score among volume
homebuilders, a position we have maintained
since the NHBC introduced these additional
independent reviews. Since the introduction
of the carbon reduction measure into the PSP
Award, the business has also demonstrated
significant out performance, supported by
targeted business decisions aimed at reducing
our carbon emissions.
Based on the Company’s performance in 2025,
the 2025 EIS paid out at 53% of maximum. The
Executive Directors exceeded the entry thresholds
for both operating profit
1
and operating profit
margin
1
, and achieved target performance for
cash conversion. As noted earlier, following the
exceptionally strong build quality and customer
service delivered during the year, the stretch target
for both measures was achieved. In line with the
Policy, one-third of the 2025 EIS will be deferred
into shares which must be held for three years.
Further details on performance can be found on
pages 149 and 150.
The PSP granted in 2023, which measures
performance over the 2023 to 2025 period,
will vest at 70% of maximum. Taylor Wimpey’s
exceptional TSR of 33.4% over the period
placed the Company in the upper quartile
of the homebuilding peer group, resulting in
a full payout under the TSR measure, with the
customer service and carbon reduction measures
also vesting in full following strong performance
during the period, while the operating profit
margin
1
and return on net operating assets
(RONOA) metrics did not meet the threshold levels
set for these stretching targets. Further details
on performance can be found on page 150.
At year end, the Committee reviewed the
formulaic outcomes of both the EIS and PSP and
concluded that the resulting levels of payout were
appropriate, reflecting the Group’s performance
over the respective one-year and three-year
performance periods. In reaching this view, the
Committee placed particular weight on the TSR
performance over the three-year performance
period for the PSP, supported by the Company’s
differentiated Distribution Policy, which continued
to deliver returns throughout the cycle.
Accordingly, the Committee did not exercise any
discretion to adjust the formulaic outturn under
either scheme.
Implementation of the
new Policy in 2026
Moving into 2026, the Executive Directors
will receive salary increases in line with the
Company-wide average salary increase of 3%.
As a reminder, the Chief Executive’s salary is
currently £850,000 and the Group Finance
Director’s salary is currently £551,499 which
means that with effect from 1 April 2026,
salaries will increase to £875,500 and
£568,044 respectively. Pension and benefits
will be unchanged.
If the new Policy is approved, it is our intention
to increase the Executive Directors’ incentive
opportunities in line with the new Policy
immediately, such that the 2026 EIS opportunity
will be 200% of salary and the 2026 PSP
opportunity will be 250% of salary.
No changes have been made to either the EIS
or PSP performance measures or weightings for
2026. The Committee believes that the current
performance measures, as set out later in this
report, continue to be consistent with our
purpose, values, culture and strategy. Further
details on how the performance measures align
with our strategy and medium term targets can
be found on page 134.
Remuneration Committee report continued
1. In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027, the Group has
renamed operating profit and operating profit margin to adjusted operating profit and adjusted operating profit margin
respectively. The calculation methodologies for the measures are unchanged. Read more on page 81.
131
Financial statements
Shareholder information
Strategic report
Directors’ report
Stakeholder engagement
A vote of 73.90% in favour was received for the
Directors’ Remuneration Report at the 2025
AGM. As this fell below the 80% threshold set out
in the 2024 Code, we engaged with shareholders
who voted against the resolution to understand
their concerns, following extensive engagement
undertaken ahead of the AGM regarding the
operation of the Policy and the 2024 EIS.
Feedback indicated that opposition to the
resolution primarily related to the outcome of the
2024 EIS, with some institutional shareholders
believing the targets could have been more
stretching and that discretion could have been
applied to reduce the payout. The Committee
had carefully set targets at the start of 2024,
reviewed the formulaic outcome and the case
for adjustment, and concluded that the payout
appropriately reflected strong management
performance in challenging conditions.
That being said, the Committee has reflected on
the feedback from shareholders, and in particular
the level of stretch inherent in the target ranges
under the EIS for performance above target,
and considered this in detail as part of the Policy
review. Going forward, the Committee will
continue to set targets carefully, ensuring that they
are robust and appropriately stretching, while
remaining motivational for management.
The Committee also consulted with our largest
institutional shareholders, representing 51% of
our issued share capital during the Policy review
process. We first consulted with our largest
shareholders in October 2025, following the
Investor and Analyst Update. We then considered
this initial feedback at our October Committee
meeting before consulting more widely with
shareholders and the investor advisory firms,
including The Investment Association and
Institutional Shareholder Services. We are grateful
for the feedback we received, and further details
of this feedback and how this was factored into
the review can be found on page 140.
Mark Castle, in his capacity as Employee
Champion, engaged with the workforce
throughout the year and brought this perspective
into Committee discussions. Additionally,
I attended the National Employee Forum (the NEF)
in January 2026 to explain how executive
remuneration aligns with the wider workforce pay
policies and address any questions.
New Performance
Share Plan rules
Shareholders will be asked to approve new PSP
rules at the AGM, as the existing PSP rules are
approaching the end of their ten-year term. The
updated rules are fully compliant with the 2024
Code and The Investment Association Principles
of Remuneration. Further details are provided on
pages 245 to 247.
Closing remarks
On behalf of the Committee, I would like to thank
shareholders for their constructive engagement on
remuneration matters throughout the past year.
I look forward to continuing our dialogue during
2026, especially in the context of implementing
the new Policy being presented for approval at
the AGM.
Lord Jitesh Gadhia
Chair of the Remuneration Committee
4 March 2026
Remuneration Committee report continued
Taylor Wimpey plc
Annual Report and Accounts 2025
132
Pay timeline (years)
Year 1
Year 2
Year 3
Year 4
Year 5
Salary, Pension,
Benefits
Paid in year
EIS
One-year
performance
period
Three-year deferral period
(one-third deferred into shares)
PSP
Three-year performance period
Two-year holding
period post-vesting
Key wider workforce statistics in 2025:
58%
of employees are either
shareholders or participate
in an all-employee share
plan (2024: 60%)
3%
salary increase budget in
2025 (2024: 5%)
3%
gender pay gap excluding
Executive Directors (mean)
(2024: 8%)
0%
gender pay gap excluding
Executive Directors (median)
(2024: 6%)
Remuneration Committee report continued
Remuneration
at a glance in 2025
Salary
Pension and
benefits
EIS
PSP
Total
remuneration
+
+
+
=
Elements of Executive Director remuneration
133
Financial statements
Shareholder information
Strategic report
Directors’ report
2025 EIS outcome: 53%
2023 PSP Award outcome: 70%
Remuneration Committee report continued
3%
8%
12%
15%
Operating profit
Maximum potential
Actual outcome
Operating profit margin
Cash conversion
Build quality
Customer service 8-week
15%
0%
50%
100%
150%
200%
250%
300%
350%
Share ownership level
against shareholding target
Shareholding level
as at 31 December 2025
Shareholding target
Jennie Daly
Chris Carney
300%
207%
TSR vs peer group
Operating profit margin
RONOA
Customer service 9-month
Carbon reduction
40%
Maximum potential
Actual outcome
15%
15%
Alignment of 2026 performance measures to strategy and
medium term targets
Performance measure
Weighting in
EIS
Weighting in
PSP
Alignment to strategy and medium term targets
Adjusted operating profit
(a)
30%
We are targeting adjusted operating profit margin
of 16-18% in the medium term. This will be
achieved through outlet growth delivering
increased legal completions, targeting UK
completions of 14,000 in the medium term,
and effective cost control.
Adjusted operating
profit margin
(a)
20%
15%
Cash conversion
20%
We are targeting RONOA of greater than 20% in
the medium term. This will be achieved through
volume and profit growth alongside effective
conversion of profit to cash, and efficient
deployment and management of capital.
RONOA
15%
TSR vs homebuilding
peer group
40%
Delivery of our medium term targets is expected
to enhance TSR through both Company
valuation and distributions to shareholders.
Build quality
15%
It is important that, alongside delivering the
medium term financial targets, we continue to
deliver high build quality and excellent customer
service experience measured across different
time horizons.
Customer service
15%
15%
Carbon emissions
reduction
15%
We intend to deliver on our climate promises to
be net zero by 2045 alongside the achievement
of our medium term targets, through a phased
reduction in our carbon emissions.
(a) In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027, the Group has
renamed operating profit and operating profit margin to adjusted operating profit and adjusted operating profit margin
respectively. The calculation methodologies for the measures are unchanged. Read more on page 81.
Taylor Wimpey plc
Annual Report and Accounts 2025
134
Remuneration in the wider context
Wider workforce remuneration
Our people are central to achieving our purpose of building great
homes and creating thriving communities. We therefore aim to
reward employees fairly and responsibly, in a way that reflects
our values and reinforces our culture of doing the right thing,
as part of a comprehensive employee value proposition.
Our remuneration strategy, which is applied consistently across
the workforce, centres around three core objectives:
Remuneration Committee report continued
1
Attraction
Attracting talent to our
Company through a competitive
compensation package
2
Engagement
Incentivising, motivating,
and recognising success
through regular review of
remuneration offerings
3
Retention
Being agile to
employee needs and
market changes
Employee engagement
The Committee
seeks feedback from
employees in a number of
ways, including:
Engagement with the NEF,
Local Employee Forums and
Young Person Forums
Read more on
page 109
The Committee Chair
attended the NEF in January
2026 to provide an overview of
the Executive Directors’
Remuneration Policy
Read more on
page 132
Feedback via the annual
employee survey, which includes
internal and external benchmarks
of employee experience
Mark Castle, Employee
Champion, is also a member of
the Committee and ensures that
employee views are considered
as part of deliberations
Regular Q&A Teams
meetings with the Chief
Executive and senior
management, where employees
can ask questions on any topics,
including remuneration
Regular roadshows to, and
webinars with, our regional
businesses arranged by our
Reward team where feedback
is gathered on our approach
to pay
135
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Executive Directors, GMT and senior management
Wider workforce
Salary increases are normally aligned with the average percentage
increase for the wider workforce
Base pay
Salaries are reviewed by the Committee on an annual basis.
The average salary increase for employees across the wider
workforce was 3% during 2025
Pension contributions are aligned with the wider workforce
Pension
Pension contribution of 10% of salary regardless of level or seniority.
We provide financial education and support to employees to help them
understand the importance of saving for retirement
Performance measures are aligned with strategy, values and culture
Bonus
All employees are eligible for a bonus. Performance measures are
aligned with strategy, values and culture
Executive Directors and GMT members are required to defer one-third
of any bonus earned into shares for three years
Deferred shares
Many employees can elect to take their bonus payment in shares
(and benefit from a 20% uplift) and are required to retain the shares
for one year. Read more about the take-up rate on page 161
Eligibility to participate in long term incentive plans and the all-employee
share schemes
Share-based incentive schemes
Employees have the opportunity to participate in the Company’s
Sharesave Scheme and Share Incentive Plan with eligible employees
being able to contribute up to the maximum HMRC allowance
(£500 per month and £1,800 per year respectively)
Executive Directors, GMT and senior management are eligible to receive
private medical healthcare
Private healthcare
All employees are eligible to receive private medical healthcare
We offer comprehensive family friendly policies, including maternity and
adoption leave, paternity leave and carers leave, which are available to
Executive Directors, GMT and senior management with over one year
of qualifying service
Family friendly policies
We offer comprehensive family friendly policies, including maternity
and adoption leave, paternity leave and carers leave, which are available
to employees with over one year of qualifying service
Oversight of wider workforce remuneration in 2025
The Committee regularly monitors and reviews the Company-wide remuneration arrangements to ensure the Executive Directors’ remuneration is aligned to incentives and rewards across the Company.
During 2025, the Committee reviewed the different elements of pay and benefits across the Company by employee level. The Committee considers that all employees receive a reward package that is aligned
to the Company’s purpose and culture, and is market competitive, transparent and fair. A summary of the remuneration arrangements across the workforce can be found below.
Taylor Wimpey plc
Annual Report and Accounts 2025
136
Remuneration Committee report continued
The Committee also considered the following workforce remuneration matters in respect of 2025:
CEO pay ratio
The ratio of CEO pay relative to workforce pay decreased in 2025, largely due to a decrease in the
Chief Executive’s single total figure of remuneration. This reduction was a result of a lower bonus payout
(53% in 2025 vs 94% in 2024). This was partially offset by a higher base salary and a higher PSP payout
(70.0% in 2025 vs 54.3% in 2024). To ensure Executive Director remuneration outcomes are aligned
with those for the wider workforce, the Committee considers annually whether the Executive Directors’
EIS and PSP outcomes appropriately reflect the Group’s performance and remuneration outcomes
across the wider workforce and whether any discretionary adjustment is required.
How performance measures align throughout the Group
The Group operates a range of annual bonus and longer term incentive arrangements across the
organisation, reflecting the diversity of roles and the strategic priorities applicable in each year. The
Committee receives an annual overview of the various arrangements, including an assessment of how
the performance measures applied across the schemes are aligned with the Group’s strategic objectives
Additionally, a teach-in session was held for the Board which provided a detailed overview of how the
various KPIs align with the performance measures in the Executive Directors’ EIS and PSP awards.
Salary review in 2025
The Committee is responsible for approving the Group’s annual salary review budget. In 2025,
the Committee considered wider pay trends and forward-looking pay expectations, both across
the UK labour market and specifically within the homebuilding sector. Taking these factors into account,
the Committee approved a salary increase budget of 3%, effective from 1 April 2025.
The Committee recognises the importance of maintaining competitive pay levels in order to attract,
engage and retain employees. Throughout the year, the Reward team conducts regular market
benchmarking across all roles to ensure that pay structures remain appropriately positioned relative to
the external market.
In addition, established pay frameworks are in place for graduates, trainees and apprentices. These
frameworks are designed to ensure that pay remains competitive for early-career colleagues, while also
providing transparency around expected salary progression as individuals gain experience in their roles.
Gender pay gap
As part of its review of wider workforce
remuneration, and in line with the Gender Pay
Gap regulations, the Committee also considers
our gender pay gap. The nature of our industry
means that many of the high headcount roles
(production and sales) are heavily male or female
weighted which means that changes to these
populations can impact our pay gap results.
Our mean pay gap, excluding Executive
Directors, is 3%, indicating that mean pay is 3%
higher for males than females. The downwards
shift in our pay gap this year primarily reflects
the following two factors:
• In 2025, we adopted a flatter discretionary
pay model to create a more consistent and
inclusive approach across all employees.
This replaced the previous tiered structure
and delivered a more balanced distribution
of increases. Although lower-paid employees
received a smaller uplift than the prior year
(around 3% vs 6%), the new model provided
more standardised increases overall.
As many lower-paid roles are held by men,
this shift also supported greater fairness
and consistency in our pay outcomes.
• Some functions remain heavily
gender-skewed (sales is 81% female;
production is 94% male). In 2025, increased
earning opportunities in sales influenced the
snapshot gender pay gap results and, given
this demographic profile, helped narrow the
gender pay gap compared with last year.
3%
gender pay gap excluding
Executive Directors (mean) (2024: 8%)
0%
gender pay gap excluding
Executive Directors (median) (2024: 6%)
137
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Review of the current Directors’ Remuneration Policy
The current Policy was subject to a binding shareholder vote at the AGM of the Company on
27 April 2023 and was approved by over 91% of shareholders who voted. The three-year life of the
current Policy will expire at the 2026 AGM when we will be required to seek binding shareholder
approval for a new Policy (the 2026 Policy). If approved by shareholders, the 2026 Policy will apply
from the date of the 2026 AGM or until a revised policy is approved by shareholders if sooner.
The 2026 Policy is designed to ensure that the remuneration framework will support and drive forward
the Taylor Wimpey strategy by both challenging and motivating the Executive Directors and senior
management to deliver it, and this will in turn drive value for our shareholders while having due regard
to our other stakeholders. The 2026 Policy is set out in this section of the report and is also available to
view on the Company’s website. The 2026 Policy was determined, reviewed and proposed through a
structured decision making process overseen by the Committee, with measures in place to avoid and
manage conflicts of interest, including ensuring that no individual is involved in decisions relating to their
own remuneration.
Policy review and changes
As outlined in the Committee Chair’s letter, the Committee undertook a detailed review of the current
Policy during the course of 2025. Following this review, the Committee concluded that the overall
structure of the EIS and PSP continues to work well. However, we are proposing four targeted changes
to ensure that the remuneration packages fairly reflect our Executive Directors’ performance and calibre,
which are summarised in the table on the right. Other minor drafting changes have also been made to
provide more clarity on the operation of the 2026 Policy.
Policy element
Proposed change
Rationale
PSP maximum
opportunity
Increase from 200%
to 250% of salary
Our EIS and PSP opportunities have been at the same levels
since Taylor Wimpey was formed by the merger of Taylor
Woodrow and George Wimpey in 2007. In order to reflect the
performance of our Executive Directors and their importance
to the business, the Committee believes it is crucial that their
incentive opportunities are positioned appropriately against
the market. This is particularly important given our Executive
Directors’ efforts to ensure that the business is set-up to
benefit from the significant opportunities available at the
start of this next cycle in the housing market.
EIS maximum
opportunity
Increase from 150%
to 200% of salary
Amount payable
for entry-level
performance
under the EIS
Increase the level of
payout for entry-level
performance under
the EIS from 10% to
25% of maximum
Having reviewed the overall competitiveness of our
remuneration packages as well as market practice
(where 25% of maximum is typically paid for this level of
performance), we propose to align with market practice and
increase the level of payout for entry-level performance from
10% to 25% of maximum.
In-employment
shareholding
guidelines
Increase from 200%
to 250% of salary
In order to align with the new maximum PSP opportunity,
we are proposing to increase the in-employment
shareholding guideline from 200% to 250% of salary.
This change ensures that the requirement continues to
foster a sense of stewardship among our Executive Directors,
encouraging them to focus on the long term sustainable
success of the business. The current post-employment
shareholding guideline (which requires Executive Directors
to hold the lower of 200% of salary or their shareholding at
the time of cessation) will continue to apply for two years
post-cessation of employment.
Taylor Wimpey plc
Annual Report and Accounts 2025
138
Remuneration Committee report continued
Additional context for the increase in variable incentive schemes opportunities
A core objective of the Directors’ Remuneration Policy is to ensure that Executive Directors’
remuneration remains competitive relative to the Company’s homebuilder peer group and organisations
of a comparable market capitalisation.
The Committee considered the overall remuneration opportunity for the Chief Executive and Group
Finance Director roles in the context of the size, scale and geographic reach of the business, as well as
the experience and capability required for these positions. The Board and the Committee consider that
Jennie Daly and Chris Carney have performed exceptionally well in their roles, and are both now well
established and highly respected across the business and in the wider sector.
As part of the review, the Committee reviewed remuneration levels against a comparator group
comprising 40 FTSE listed companies with a similar market capitalisation to Taylor Wimpey, together
with our listed homebuilder peers. The Committee believes these comparators provide a relevant and
appropriate benchmark, as they reflect both the complexity of the roles and the competitive talent
market in which Taylor Wimpey operates.
As a result, the maximum EIS opportunity will increase from 150% to 200% of salary, and the maximum
PSP opportunity will increase from 200% to 250% of salary. The Committee believes it is appropriate
that the Executive Directors continue to have the same maximum opportunities as they are a strong
complementary leadership team, who are both critical to shaping and executing Taylor Wimpey’s
strategy. Recognising that Taylor Wimpey is the fourth largest homebuilder in the UK by market
capitalisation, the Committee believes that the new opportunity levels ensure appropriate pay positioning
against our sector peers. As shown in the charts on the right, compared to 20 FTSE-listed companies
immediately higher and 20 immediately lower than Taylor Wimpey’s current market capitalisation,
the new incentive opportunity levels result in total remuneration positioning of around the median
for the Chief Executive, and between median and upper quartile for the Group Finance Director.
The Committee is comfortable with this, given the calibre, experience and performance of our
Executive Directors, as highlighted above.
Chief Executive total maximum remuneration vs FTSE peers (£000)
(a)
£3,500
£4,000
£4,500
£5,000
£5,500
£6,000
Lower quartile to median
Median to upper quartile
Taylor Wimpey – proposed
Taylor Wimpey – current
Group Finance Director total maximum remuneration vs FTSE peers (£000)
(a)
£2,000
£2,500
£3,000
£3,500
£4,000
Lower quartile to median
Median to upper quartile
Taylor Wimpey – proposed
Taylor Wimpey – current
(a) The FTSE peer group is the 20 FTSE-listed companies immediately higher and 20 immediately lower than Taylor Wimpey’s
current market capitalisation.
139
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Shareholder consultation and feedback
As outlined in the Committee Chair’s letter on page 132, an extensive shareholder consultation was undertaken in respect of the proposed Policy. The Committee Chair wrote to shareholders representing over
51% of the issued share capital, as well as to the proxy advisory firms. Responses were received from shareholders representing over 42% of the issued share capital, and the Committee Chair subsequently held
meetings with shareholders representing over 31% of the share register. Details of the feedback received from shareholders and the actions taken to address it are set out in the table below.
Feedback
Action
Importance of ensuring stretching targets accompany the increase in variable
incentive opportunities
We will undertake a robust calibration of performance targets each year to ensure that variable incentive targets are appropriately
stretching. In particular, maximum performance outcomes will be calibrated to reflect superior performance. Moving into 2026,
as a Committee, we considered our multi-year internal business plans alongside our publicly stated medium term targets, to ensure
that the targets continue to support long term, sustainable value creation for shareholders.
The broader stakeholder experience should be considered as part of the policy
design and in the determination of incentive outcomes
We further embedded consideration of the broader stakeholder experience into the design of our incentive arrangements and
the assessment of variable pay outcomes, including reflecting the approach taken to wider workforce remuneration and consideration
of recent shareholder experience. The Committee undertakes an annual review of incentive outcomes in the context of wider stakeholder
experience and will apply discretion where appropriate to ensure outcomes remain consistent with stakeholder experience. Read more
about how wider workforce remuneration was taken into consideration on pages 135 to 137.
Disclosure in the Directors’ Remuneration Report should clearly support the
proposed increase in incentive opportunity and how the performance measures
and target ranges align to our business strategy
We have enhanced the disclosures in the Remuneration Committee report to articulate more clearly the rationale for the proposed
increase in incentive opportunities, as set out on the previous page. We have also strengthened the disclosures on how the selected
performance measures align with and support the delivery of our business strategy and medium term targets.
Taylor Wimpey plc
Annual Report and Accounts 2025
140
Remuneration Committee report continued
Directors’ Remuneration Policy
This section sets out the proposed new Directors’ Remuneration Policy, which is intended to take effect
from the 2026 AGM and remain in force for a three-year period, subject to shareholder approval.
The current Directors’ Remuneration Policy is included on pages 128 to 133 of the Company’s 2022
Annual Report and Accounts, available on our website.
Illustration of the Remuneration Policy for 2026 (£000)
The charts below illustrate the level and mix of remuneration provided under the Policy depending on the
achievement of below target, target and maximum performance for the Executive Directors in 2026.
Fixed pay
EIS
PSP
50% share price growth on PSP
Jennie Daly
Chief Executive
Chris Carney
Group Finance Director
£975
£2,397
£4,914
£6,009
£640
£1,563
£3,196
£3,906
£0
£1,000
£2,000
£3,000
£4,000
£5,000
£6,000
£7,000
Below target
Target
Maximum
Maximum (with
share price growth)
Below target
Target
Maximum
Maximum (with
share price growth)
100%
41%
36%
23%
44%
37%
18%
36%
29%
20%
16%
100%
41%
20%
16%
29%
37%
18%
36%
44%
36%
23%
1. Salary is £875,500 and £568,044 for Jennie Daly and Chris Carney, respectively, as at 1 April 2026.
2. Benefits are £11,689, and £14,881 for Jennie Daly and Chris Carney, respectively, being the 2025 value.
3. Pension is 10% of salary for Jennie Daly and Chris Carney.
4. For the EIS, the target and maximum are 100% and 200% of base salary, respectively.
5.
For the PSP, the target (assumed for these purposes to be at threshold performance) and maximum are 62.5% and 250%
of base salary, respectively.
6.
For the ‘Maximum (with share price growth)’ scenario, it is assumed that there is a 50% increase in share price between the
grant date and vesting date of the PSP award.
Policy overview
A key part of the Committee’s role is to ensure that the remuneration of Executive Directors and
senior management is aligned to the Company’s strategic objectives. It is key that the Company
is able to attract and retain leaders who are focused and appropriately incentivised to deliver the
Company’s strategic objectives, within a framework that is aligned with the long term interests of
the Company’s shareholders.
This alignment is achieved through a combination of:
• Performance measures for the EIS and PSP being aligned with KPIs, the Company’s strategic
objectives and measures of sustainable performance
• Deferral into shares of a percentage of the EIS for three years
• A two-year retention period for vested PSP Awards
• Share ownership guidelines which require executives to build up holdings of Taylor Wimpey shares,
either directly or by retaining vested PSP Awards and deferred EIS amounts
• A post-employment shareholding requirement
• Robust clawback and malus provisions
These requirements ensure that a significant percentage of the overall remuneration package of our
Executive Directors and senior management is subject to performance and delivered in shares which
must be held long term. With all packages for our Executive Directors substantially geared towards
meeting challenging targets set under the EIS and PSP, the Committee believes that the pay and
benefits of its Executive Directors and senior management adequately balances reward and risk.
In line with best practice, the Committee structures the incentives for Executive Directors and
senior management in a way that ensures they will not raise ESG risks by inadvertently motivating
irresponsible behaviour. More generally, the Committee under its Terms of Reference may, where it
considers appropriate, take ESG matters into account when considering the overall remuneration
structure and as part of its overall discretion.
141
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Policy table
Element
Purpose and link to strategy
Operation
Maximum
Performance targets
Salary
To recruit and reward Executive Directors
of a suitable calibre for the role and
duties required.
Salaries are normally reviewed annually to ensure that they remain
positioned appropriately. There is no automatic entitlement to an increase
each year. Salary level and increases take into account the following:
•
The performance, role, and responsibility of each individual
Executive Director
•
The economic climate, general market conditions and the performance of
the Company
•
The level of pay awards across the rest of the business
•
Salary levels in comparably-sized companies and other major homebuilders
The maximum annual salary increase will not
normally exceed the average increase which
applies across the wider workforce. However,
larger increases may be awarded in certain
circumstances, including but not limited to:
•
Increase in scope or responsibilities of the role
• To apply salary progression for a newly/recently
appointed Executive Director
• Where the Director’s salary has fallen
below the market positioning, as determined
by the Committee
Company and individual
performance are factors
considered when
reviewing salaries.
Chair of the
Board and
Non Executive
Director fees
The Chair and Non Executive Directors’
fees should be structured in line with
recognised best practice and be sufficient
to attract and retain high-calibre
non executives.
Fees consist of a single consolidated fee for the Chair, an annual fee
for the other Non Executive Directors and additional fees for roles such as
the Chair of the Audit Committee, Chair of the Remuneration Committee,
Senior Independent Director and Employee Champion.
Fees are set by reference to the responsibilities undertaken by the Non
Executive Director, taking into account that each Non Executive Director is
expected to be a member of the Nomination and Governance Committee
and/or the Audit Committee and/or the Remuneration Committee.
Fees are reviewed periodically but generally annually and at least every
other year taking into account levels in comparably-sized companies and
other major homebuilders.
A portion of Chair and Non Executive Director fees may be paid in cash
or a share-based form if deemed appropriate.
Non Executive Directors do not participate in any incentive, share scheme,
employee benefits or pension arrangements. Any reasonable expenses
incurred in carrying out duties will be fully reimbursed including any
personal taxation associated with such expenses.
Aggregate annual limit of £1 million imposed by the
Company’s Articles of Association.
N/A
Remuneration Committee report continued
Taylor Wimpey plc
Annual Report and Accounts 2025
142
Remuneration Committee report continued
Element
Purpose and link to strategy
Operation
Maximum
Performance targets
Other
benefits,
including
benefits-in-
kind
Provides a competitive package
of benefits to assist with recruitment
and retention of high calibre
Executive Directors.
Benefits normally include, but are not limited to:
• Company-provided car or a cash allowance
• Healthcare
• Life assurance
•
A 5% discount on the price of a new home acquired from the Group
Benefits offered to the wider workforce may also be offered to
Executive Directors.
Other market competitive benefits may also be offered by the Committee
should it deem these appropriate to secure the appointment of a new
Executive Director or retain an Executive Director (including legacy benefits)
and to ensure that the benefits package for existing Executive Directors
remains competitive in the market.
There is no formal maximum. The level of a benefit
provided will be aligned to the approach taken
for the wider workforce but may vary depending
on seniority. Benefits are provided based on
market rates.
For home purchases, the price discount is
calculated as the plot release price less the average
discount to third-party buyers for that house type
on that development, less a further 5% employee
discount. No more than one home per annum can
be acquired at a discount under the scheme; and
no more than three homes can be acquired in a
five-year period. The maximum discount over a
five-year period is £100,000.
N/A
Executive
Incentive
Scheme (EIS)
Rewards the achievement of stretching
financial performance targets and other
objectives that support the Company’s
annual and strategic goals.
Compulsory deferral in shares further
aligns the interests of Executive Directors
with shareholders.
EIS awards are normally determined by the Committee after the year
end, based on annual performance against targets set at the beginning
of each year.
One-third (net) of any EIS is typically payable in shares which are held in
trust for three years.
The Committee has the ability to adjust the amount of a bonus if the
formulaic outcome is not considered reflective of individual or business
performance or the broader shareholder experience.
A malus and clawback mechanism applies to all participants. The discovery
period for an event that would give rise to the clawback is three years from
the date of payment.
The maximum EIS opportunity for Executive
Directors is 200% of salary. Target is 100%
of salary.
If an entry level of performance is achieved, up to
25% of maximum is payable under each metric.
The EIS measures are based on
a scorecard of designated key
annual financial, operational
and environmental, social, or
governance measures.
Performance
Share Plan
(PSP)
Annual grants of share-based long term
incentives assist with the retention,
incentivisation and motivation of Executive
Directors to achieve long term sustainable
returns for shareholders. A post-vesting
holding period helps align the interests of
Executive Directors with those of the
Company’s shareholders.
Executive Directors can receive PSP Awards, granted annually.
Performance is normally measured over three financial years.
The value of dividends or other distributions will accrue from the date of
grant and will be paid with any shares that vest. The value of accrued
dividends will normally be paid in shares.
The Committee has the ability to adjust the vesting outcome of the awards
if the formulaic outcome is not considered reflective of individual or
business performance or the broader shareholder experience.
A malus and clawback mechanism applies to all participants. The discovery
period for an event that would give rise to the clawback is three years from
the date of payment.
The maximum award is normally over shares with
a face value of 250% of salary. In exceptional
circumstances this can be increased up to 300%
of salary.
Awards vest at 25% for threshold performance.
The performance conditions
are aligned to the long term
business strategy.
The Committee may vary the
measures that are included in the
plan and the weightings between
the measures from year to year.
143
Financial statements
Shareholder information
Strategic report
Directors’ report
Remuneration Committee report continued
Element
Purpose and link to strategy
Operation
Maximum
Performance targets
Pension
The Company aims to provide competitive
retirement benefits.
Pension benefits are provided through one or more of the following
arrangements:
• Personal Choice Plan
• As a cash allowance
Company contributions to any pension scheme, or
any amount paid as a cash allowance, in respect of
current Executive Directors or a new Executive
Director will be in line with the pension contribution
rate applying to the majority of the workforce,
currently 10% of salary.
N/A
All-employee
share plans
All employees including Executive
Directors are encouraged to become
shareholders through the operation of
all-employee share plans such as the
HMRC tax-advantaged Sharesave plan
and a Share Incentive Plan (SIP).
The Sharesave plan and SIP have standard terms under which all UK
employees with at least three months’ service can participate.
Sharesave: Employees can elect for a savings
contract of either three or five years, with a
maximum monthly saving. Options can be
exercised during the six months following the end
of the contract.
SIP: Employees can elect to contribute an amount
per month or by one or more lump sums per
tax year.
The maximum saving or contribution level for
Sharesave and SIP are approved by the
Remuneration Committee and the Board within
the limits prescribed by legislation or Government
from time to time.
N/A
Shareholding
guidelines
Encourages greater levels of shareholding
and aligns employees’ interests with those
of shareholders.
Executive Directors are expected to achieve and maintain a holding of the
Company’s shares at least equal to 250% of salary and, until this level is
achieved, are normally required to retain no less than 50% of the value of
any vested EIS, deferred bonus shares or PSP Awards, after tax.
A post-employment shareholding requirement requires Executive Directors
to hold 200% of salary, or their shareholding level at the time of cessation
if lower, for at least two years. This requirement may be reduced by the
Committee in exceptional circumstances, such as serious ill-health.
Executive Directors: 250% of salary.
N/A
The Committee may amend this shareholder approved Policy to take account of changes to legislation, taxation and other supplemental and administrative matters without needing to seek shareholder approval
for those changes.
Taylor Wimpey plc
Annual Report and Accounts 2025
144
Remuneration Committee report continued
How the EIS and PSP measures and targets are chosen
The performance measures selected for the EIS and PSP are set each year to reflect the Group’s key
strategic goals and are designed to align the Executive Directors’ and senior management’s interests
with those of the Company’s shareholders and wider stakeholders. The Committee consults with major
shareholders where any significant changes are proposed.
The Committee will continue to review the choice of performance measures and the appropriateness
of the performance targets each year. Targets are set based on a sliding scale that takes account
of internal planning and external market expectations for the Company. Maximum rewards require
meaningful out performance of the budget approved at the start of each year, with a significantly lower
level of rewards available for delivering threshold and target performance levels.
The proposed measures for the 2026 EIS and PSP are set out on page 157, with their alignment
to our strategy and recently announced medium term targets explained on page 134, and remain
unchanged from those applied in 2025.
Committee discretion
The Committee recognises that the exercise of discretion must be undertaken in a careful and
considered way as it is an area that will rightly come under scrutiny from shareholders and other
stakeholders. The Committee confirms that any exercise of discretion would be within the available
discretions set out in this Report and that the maximum opportunity levels available under any relevant
plans would not be exceeded. If discretion is operated, there would be full disclosure in the next
Directors’ Remuneration report and major shareholders would be consulted if appropriate.
With regard to both the EIS and the PSP, the Committee, consistent with market practice, retains
discretion over a number of areas relating to the operation and administration of these plans but in
all cases within the applicable scheme rules. This includes the ability to apply malus, clawback, and
responsible discretion to override formulaic outcomes to ensure they are aligned to performance and
broader stakeholder experience.
How shareholder views are taken into account
The Committee regularly engages with the Company’s largest shareholders and shareholder
representative bodies regarding the ongoing Policy and its implementation, and will take into account
any feedback when determining any changes that might apply.
The last such consultation took place in late 2025, when we consulted with major shareholders
representing around 51% of our issued share capital in relation to the 2026 Policy. Overall shareholder
feedback was positive. Read more about the feedback received as part of the consultation on
page 140.
Wider workforce policies and practices
The Committee is mindful of remuneration arrangements across the business and regularly receives
reports regarding wider workforce policies and pay practices. Further details on this can be found on
pages 135 to 137.
Many of our employees can elect to take their bonus payments in shares (and benefit from a 20% uplift)
rather than in cash, further enhancing the link and alignment between shareholder value and employee
reward throughout the Company, which both the Board and the Committee consider important.
How our employees’ voice is taken into account
There are clear links between the Executive Directors, senior management and wider workforce
remuneration arrangements. Further details on the various ways that the Committee seeks feedback
from employees in relation to remuneration matters can be found on page 135. The Committee Chair
also attended a NEF meeting in January 2026 to provide an overview of the Committee’s approach to
Executive Director remuneration and how this aligns to the wider workforce policies and pay practices.
Many employees are also shareholders in the Company and have the opportunity to vote on
remuneration-related resolutions at the Company’s AGMs.
External non executive director positions
Subject to Board approval and provided that such appointments fall within the general requirements of
the 2024 Code (and do not give rise to any conflict issues which cannot be managed by the Board and
the Executive Director), Executive Directors are permitted to take on one non executive position with
another company. Executive Directors are permitted to retain their fees in respect of such positions.
Details of any external positions held by the Executive Directors can be found in their biographies on
page 92.
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Strategic report
Directors’ report
Remuneration Committee report continued
Remuneration Policy on recruitment or promotion
Component
Policy and operation
Remuneration
Base salary
Base salary levels will be set in accordance with the 2026 Policy, taking into account the experience and calibre of the individual. Where appropriate, the Company may offer a below market
salary initially with a view to making above market and/or wider workforce aligned increases over a number of years to reach the desired salary positioning as determined by the Committee,
subject to individual and Company performance.
Benefits
Benefits will be provided in accordance with the 2026 Policy and relocation benefits will be provided if necessary. Tax equalisation may also be considered if a new Executive Director is adversely
affected by taxation due to their employment with the Company. Legal fees and other costs incurred by the individual may also be paid by the Company, if considered appropriate and
reasonable to do so.
Pension
Pension contributions will be provided in accordance with the 2026 Policy.
EIS and PSP
EIS and PSP may be offered in accordance with the 2026 Policy and will be subject to the maximum levels described in the 2026 Policy table on page 143. The Company may also consider
applying different performance measures if it feels these more appropriately meet the strategic goals and aims of the Company while incentivising the new appointee.
Buy-out Awards
In the case of an external hire, the Company may choose to buy out any incentive pay or benefit arrangements which would be forfeited on leaving the previous employer. This will only occur
where the Company feels that it is a necessary requirement to aid the recruitment of the desired candidate. The replacement value would be provided for, normally on a like-for-like basis, taking
into account the form (cash or shares), timing and expected value (i.e. likelihood of meeting any existing performance criteria) of the remuneration being forfeited. Replacement share awards,
if used, will be granted using the Company’s existing share plans wherever and to the extent possible, although in exceptional circumstances awards may also be granted outside of these plans
if necessary and permitted under the Listing Rules. To ensure alignment from the outset with shareholders, malus and clawback provisions may also apply where appropriate, and the
Committee may require new Executive Directors to acquire Company shares up to a pre-agreed level. Shareholders will be informed of any buy-out payments and awards at the relevant time.
Internal promotion
In the case of an internal hire including a promotion, the Company will honour any commitments entered into prior to the individual’s appointment to the Board even where it is not consistent with
the 2026 Policy prevailing at the time such commitment is fulfilled.
Service contracts and letters of appointment
The tables below set out the dates of each of the Executive Directors’ service contracts and the dates
of the Non Executive Directors’ letters of appointment. Directors are required to retire at each AGM
and seek re-election by shareholders. Service contracts for each Executive Director and letters of
appointments for each Non Executive Director are available for inspection at the Company’s registered
office during normal business hours and at the AGM. The Non Executive Directors’ letters of
appointment do not have a fixed term (but include a six month notice period). Non Executive
Directors are appointed in the expectation they will typically serve no more than nine years, subject
to shareholder re-election.
Executive Director
Service contract
commencement date
Unexpired term (months)
Jennie Daly
(a)
26 April 2022
12
Chris Carney
20 April 2018
12
Non Executive Director
Service contract
commencement date
Notice period by Company
and Director (months)
Robert Noel
(b)
15 December 2022
6
Mark Castle
1 June 2022
6
Martyn Coffey
1 December 2024
6
Irene Dorner
1 December 2019
6
Jitesh Gadhia
1 March 2021
6
Scilla Grimble
1 March 2021
6
Clodagh Moriarty
1 June 2022
6
(a) Jennie Daly signed a new service contract when she was appointed as Chief Executive that superseded her original service
agreement dated 20 April 2018.
(b) Robert Noel signed a new letter of appointment when he was appointed as Chair that superseded his original letter of
appointment dated 1 October 2019.
Taylor Wimpey plc
Annual Report and Accounts 2025
146
Remuneration Committee report continued
Directors’ contracts and policy on payments for loss of office
Component
Policy and operation
Unexpired term
The unexpired term of Executive Director contracts is 12 months. Jennie Daly and Chris Carney are proposed for re-election at the 2026 AGM. At that date, Jennie and Chris will have an
unexpired service contract of 12 months.
Notice period
Executive Directors have contracts of employment providing for a maximum of 12 months notice period either way, consistent with Provision 40 of the 2024 Code.
Provisions in the contract
The payment of a base salary.
An expensed company car or a cash allowance, life assurance, and private medical insurance.
Employer’s contribution to a pension.
A provision requiring a Director to mitigate losses on termination.
Participation in the EIS annual bonus scheme.
Participation in a long term incentive plan.
Termination
The Company has the right to terminate contracts by making a payment in lieu of notice. Any such payment will typically reflect the individual’s salary, benefits-in-kind, and pension entitlements.
The Company will be mindful, on termination of an Executive Director’s employment, of the need to mitigate costs and phase payments, which will normally cease when the individual obtains an
alternative role. There are no change of control provisions that apply in relation to the service contract of any Executive Director.
EIS
Other than in certain ‘good leaver’ circumstances (which could include redundancy, ill-health, or retirement), no payment would usually be due under the EIS unless the individual remains
employed at the payment date. Any payment to a good leaver under the EIS would normally be based on an assessment of their and the Company’s performance over the applicable period
and pro-rated for the proportion of the EIS year worked.
PSP
The rules of the PSP provide that, other than in certain ‘good leaver’ circumstances, awards lapse on cessation of employment. Where an individual is a good leaver, the Committee’s normal
policy is for the award to vest at the normal time following the application of performance targets, and a pro-rata reduction to take account of the proportion of the applicable performance period
outstanding post the cessation. The Committee also has discretion to allow early vesting and to reduce the impact of pro-rating if considered appropriate. In doing so, it will take account of the
reason for the departure and the performance of the individual through to the time of departure.
Exit payments
In situations where an Executive Director is dismissed, the Committee reserves the right to make additional exit payments where such payments are made in good faith, for example:
•
In the discharge of an existing legal obligation (or by way of damages for breach of such an obligation)
•
By way of settlement or compromise of any claim arising in connection with the termination of a Director’s office or employment
•
To contribute towards the individual’s legal fees and fees for outplacement services
Legacy arrangements
Any commitment which is consistent with the approved Remuneration Policy in force at the time that the commitment was made, or made to a current Director prior to appointment, and not in
connection therewith, will be honoured, even where it is not consistent with the Remuneration Policy prevailing at the time such commitment is fulfilled. There are no legacy commitments in place
for the current Directors.
Non Executive Directors
The terms of engagement of the Chair of the Board and the Non Executive Directors are regulated by letters of appointment over a term of three years, which are normally reviewed annually.
Both the Company and the Non Executive Directors (including the Chair) have a notice period of six months, and the Non Executive Directors are not entitled to compensation on termination
other than for the normal notice period if not worked.
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Directors’ report
148
Taylor Wimpey plc
Annual Report and Accounts 2025
Remuneration Committee report continued
This section sets out how the Policy was applied for the year ended 31 December 2025. The Directors’
Remuneration Report will be put to an advisory shareholder vote at the AGM on 28 April 2026.
Details of the resolution are set out in the Notice of Meeting on pages 234 and 237.
During the year, the current Policy (as approved by shareholders at the 2023 AGM), operated as
intended, providing a robust link between Company performance and remuneration.
Implementation in 2025
Total remuneration received (£000) (audited)
The chart below compares the 2025 single figure total remuneration for each of the Executive Directors
with the equivalent figure for 2024.
Jennie Daly
Chief Executive
Chris Carney
Group Finance Director
31%
39%
30%
35%
25%
40%
2025
2024
£0
£500
£1,000
£1,500
£3,000
£2,000
£3,500
£2,500
£2,851
£2,687
31%
40%
29%
35%
25%
40%
2025
2024
£1,911
£1,782
Fixed pay
EIS
PSP
Single total figure of remuneration for Executive Directors (audited)
The table below sets out the single total figure of remuneration received by each Executive Director in
2025 and 2024.
Jennie Daly |
Chris Carney |
|||
(£000) |
2025 |
2024 |
2025 |
2024 |
Base salary |
836 |
790 |
547 |
532 |
Benefits (a) |
12 |
11 |
15 |
13 |
Pension (b) |
84 |
79 |
55 |
53 |
Total fixed pay |
932 |
880 |
617 |
598 |
EIS (c) |
676 |
1,122 |
439 |
755 |
PSP (d) |
1,079 |
849 |
726 |
558 |
Total variable pay |
1,755 |
1,971 |
1,165 |
1,313 |
Total pay |
2,687 |
2,851 |
1,782 |
1,911 |
(a) Benefits – corresponds to the value of taxable benefits in respect of the year ended 31 December 2025, as set out in the
table on page 149.
(b) Pension – these figures represent pension contributions up to the amount permissible under HMRC rules and cash
allowances beyond that level.
(c) EIS – the 2025 EIS outcome was 53% of maximum and further details can be found on pages 149 and 150. The 2024 EIS
outcome was 94%. One-third of the Executive Directors’ bonus is deferred into shares which are subject to a three-year
deferral period. These shares are not subject to any further performance or non-performance measures.
(d) PSP – the outcomes of the 2022 and 2023 PSP Awards included in the 2024 and 2025 columns respectively can be found
on pages 150 and 151. Both figures include the value of dividends accrued during the performance period, which are
payable in shares. There is a compulsory two-year holding period for any vested PSP shares and the related dividend shares.
The value of the 2022 PSP Award (shown in the 2024 column) has been restated to reflect the share price on the date the
Award vested, which was 111.7 pence. The value of the 2023 PSP Award (shown in the 2025 column) has been calculated
using a share price of 103.7 pence as this was the average share price for the dealing days in the last three months of the
financial year. The share price used to calculate the 2023 PSP Award was 124.3 pence for Jennie Daly and Chris Carney,
being the average closing share price the three days preceding the grant. Therefore, no value is attributable to share price
appreciation in the period.
Strategic report
Directors’ report
Financial statements
Shareholder information
149
Remuneration Committee report continued
Salaries in 2025 (audited)
As disclosed in our Annual Report and Accounts 2024, the Committee approved salary increases of
6.8% for Jennie Daly and 3% for Chris Carney, effective from 1 April 2025. The Company-wide average
salary increase in 2025 was 3%. The rationale for these salary increases is set out in the Annual Report
and Accounts 2024.
Benefits (audited)
(£000) | Jennie Daly | Chris Carney |
Car | 3 | 3 |
Healthcare | 3 | 7 |
Life assurance | 4 | 3 |
All-employee share schemes (a) | 2 | 2 |
Total | 12 | 15 |
(a) These figures represent the value of matching shares under the Share Incentive Plan. The Executive Directors did not exercise
any Sharesave options during the year.
Directors’ pension entitlements (audited)
The Executive Directors’ pension contributions are 10% of salary, which is the same rate available to the
majority of the workforce and, as such, the Company is compliant with Provision 39 of the 2024 Code.
The value of Company pension contributions in 2025 for Jennie Daly and Chris Carney was:
Director | 2025 | 2024 |
Jennie Daly | 10,000 | 10,002 |
Chris Carney | 10,000 | 10,002 |
Jennie and Chris also received cash allowances of £73,642 (2024: £68,987) and £44,748 (2024: £43,153)
respectively in lieu of Company pension contributions over the Tapered Annual Allowance
limit introduced in April 2016. No additional benefit is accrued if an Executive Director retires early.
EIS in 2025 (audited)
The outcome of the 2025 EIS is 53% of the maximum and the table below shows the performance
against the targets set and the payout level under each element.
Entry | Target | Stretch | ||||
Performance measure | Weighting | (10%) | (50%) | (100%) | 2025 Actual | Outcome |
Operating profit (a) | 30% | £420m | £440m | £460m | £420.6m | 3.4% |
Operating profit margin (a) | 20% | 10.5% | 11.0% | 11.5% | 10.9% | 8.4% |
Cash conversion | 20% | 150% | 170% | 190% | 173.0% | 11.5% |
Build quality (b) | 15% | 93.0% | 94.5% | 96.0% | 97.8% | 15.0% |
Customer service (c) | 15% | 4.15 | 4.165 | 4.18 | 4.25 | 15.0% |
Total | 100% | 53% |
(a) In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027, the Group has
renamed operating profit and operating profit margin to adjusted operating profit and adjusted operating profit margin
respectively. The calculation methodologies for the measures are unchanged. Read more on page 81.
(b) Build quality is measured externally through the National House Building Council (NHBC) Construction Quality Reviews (CQR).
(c) The customer service measure for 2025 is aligned to the House Builders Federation’s (HBF) revised five-star rating scheme.
Performance is assessed on the two questions from both the 8-week and 9-month surveys. The questions relate to customer
satisfaction in relation to build quality and the service received after completion.
At the end of the year, the Committee assessed the formula-driven outturn and determined that the level
of payout across the EIS measures was appropriate. Due to the cyclical nature of the homebuilding
sector, the performance achieved and respective payout from the 2025 EIS should be considered in the
context of the overall sector, macro economics dynamics and delivery against expectations. Market
conditions were challenging, shaped by uncertainty affecting customers and affordability pressures.
In this context, the Company delivered a robust performance during 2025. The business achieved UK
legal completions in line with guidance set at the start of the year. Alongside delivering financial results
in line with market expectations, the Company maintained a five-star customer service rating under the
new HBF scoring system. A 97.8% build-quality score was achieved which improves on last year’s
exceptionally strong build quality performance, which at the time represented the highest score ever
recorded at Taylor Wimpey. The business also sustained strong employee engagement, with the score
remaining at 92%. Both the customer service and build quality measures are independently verified,
providing assurance over the robustness of the outcomes.
150
Taylor Wimpey plc
Annual Report and Accounts 2025
Remuneration Committee report continued
The Committee also considered shareholder and broader stakeholder experience over the year.
The Company has successfully returned over £1 billion to shareholders during the current Policy
period and £2.8 billion under our Dividend Policy since 2018. As noted on pages 129 and 130,
the Company’s updated Distribution Policy is to continue to return 7.5% of net assets per annum,
or at least £250 million, in two equal instalments to shareholders. This is a differentiated distribution
policy within the homebuilding sector. The Committee is therefore satisfied that the EIS payout
achieved is representative of the strong performance of the Executive Directors in 2025; accordingly,
the Committee did not exercise any discretion to adjust the formulaic outcome.
The Executive Directors receive two-thirds of their EIS as cash; the remaining third will be paid in shares
and will be retained in the Company’s Employee Benefit Trust for three years. These shares will not be
subject to any further performance or non-performance measures.
PSP in 2025 (audited)
2023 PSP Award outcome
The outcome of the 2023 PSP Award, which assesses performance from 1 January 2023 to
31 December 2025, is 70% of the maximum. The table below sets out performance against each
target and the resulting payout level for each measure.
Threshold | Maximum | ||||
Performance measure | Weighting | (20%) | (100%) | Actual | Outcome |
TSR vs homebuilder | 40% | Median | Upper quartile | Taylor Wimpey: 33.4% | 40% |
peer group (a) | Upper quartile: 28.2% | ||||
RONOA in 2025 | 15% | 14% | 19% | 11.0% | 0% |
Operating profit margin in 2025 (b) | 15% | 13% | 18% | 10.9% | 0% |
Customer service in 2025 (c) | 15% | 78.5% | 81.5% | 85.6% | 15% |
Carbon reduction in 2025 (d) | 15% | 34% | 38% | 60.0% | 15% |
Total | 100% | 70% |
(a) The peer group was comprised of Barratt Developments, Bellway, Berkeley Homes, Crest Nicholson, Persimmon, Redrow
and Vistry Group. Barratt Developments merged with Redrow in August 2024. For the purpose of assessing the TSR
performance of Redrow, its performance has been tracked using the performance of Barratt Developments (the acquirer)
from the date Redrow shares were de-listed and cancelled (22 August 2024).
(b) In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027, the Group has
renamed operating profit and operating profit margin to adjusted operating profit and adjusted operating profit margin
respectively. The calculation methodologies for the measures are unchanged. Read more on page 81.
(c) The customer service measure is based on the single question ‘Would you recommend?’ from the independently measured
HBF 9-month survey.
(d) The carbon reduction measure is based on absolute carbon emissions reduction targets to be achieved by 31 December
2025 from a 2019 baseline.
Taylor Wimpey’s exceptional TSR of +33.4% in the period placed the Company in the top quartile of the
homebuilding peer group and so the TSR element paid out in full. The Company did not achieve the
threshold performance level for the stretching targets relating to RONOA and operating profit margin.
In 2025, the Company delivered a strong customer satisfaction score consistent with our five-star
builder status. Across the full three-year performance period, we achieved sustained improvements in
long term customer satisfaction, resulting in performance ahead of maximum.
The carbon reduction measure is based on absolute carbon emission reductions to be achieved by
31 December 2025, which is aligned with our ambitious publicly announced 2045 Net Zero Transition
Plan. The ambitious target was set to incentivise the reductions in scope 1 and 2 emissions required
from our 2019 baseline to meet our commitments and are firmly linked to business strategy. Since
introducing these targets, active business decisions have been taken to reduce our carbon emissions,
such as investing in hydrotreated vegetable oil, increasing our use of renewable electricity and powering
our construction sites with hybrid generators. Between 2019 and 2025, these measures have reduced
our scope 1 and 2 emissions by 60%.
Reflecting the exceptional performance on both customer service and carbon reduction, each of these
measures will vest in full. The customer service measure is independently measured by the HBF
9-month survey. As noted on pages 50 and 120, PwC performed external independent limited
assurance procedures over selected ESG performance metrics, including the Scope 1 and Scope 2
market based emissions, this data has been used to calculate the 60% reduction compared with the
2019 baseline.
The Committee is comfortable that the overall vesting level of the award is appropriate, taking into
account holistic business performance and the wider stakeholder experience over the performance
period, particularly noting the relative TSR performance over the period. As such, no discretion was
exercised in respect of the formulaic outcome.
The shares vesting will be subject to a two-year post-vesting holding period. The Committee has the
discretion to adjust the number of shares vesting from each PSP Award in order to mitigate against any
potential windfall gains, and the Committee is comfortable that the outcome of the 2023 Award was not
inflated by windfall gains.
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Remuneration Committee report continued
PSP Awards included in the 2024 and 2025 single total figure of remuneration table
The table below sets out the number of shares each Executive Director received after the vesting of the 2022 and 2023 PSP Awards.
Number of | Value attributable | Value of proportion | |||||||||
Value of award | End of | dividend | to share price | of PSP | |||||||
Number of | at grant | performance | % of award | Number of | equivalent | Total number | increase | (single figure) | |||
shares granted | (£000) | period | vesting | shares vesting | shares | of shares | Vesting date | (£000) | (£000) | ||
2025 (a) | Jennie Daly | 1,207,243 | 1,500 | 31/12/2025 | 70.0 | 845,070 | 195,678 | 1,040,748 | 05/03/2026 | – | 1,079 |
Chris Carney | 812,394 | 1,009 | 31/12/2025 | 70.0 | 568,675 | 131,679 | 700,354 | 05/03/2026 | – | 726 | |
2024 (b) | Jennie Daly | 1,141,552 | 1,500 | 31/12/2024 | 54.3 | 619,862 | 140,267 | 760,129 | 27/02/2025 | – | 849 |
Chris Carney | 749,713 | 980 | 31/12/2024 | 54.3 | 407,094 | 92,121 | 499,215 | 27/02/2025 | – | 558 |
(a) The 2023 PSP Award is included in the 2025 single total remuneration figure. The performance against each of the performance measures is noted in the table on page 150. A share price of 103.7 pence was used to calculate the value of the Award vesting
on 5 March 2026 as this was the average share price for the dealing days in the last three months of the financial year. Based on the share price of 103.7 pence, no value is attributable to a share price increase, as the share price used to calculate the 2023
PSP Award was 124.3 pence, being the average closing share price the three days preceding the grant. The value of the 2023 Award will be recalculated in the Annual Report and Accounts 2026 to reflect the share price on the date the Award vests.
Dividend equivalents will be paid in shares.
(b) The 2022 PSP Award is included in the 2024 single total remuneration figure. Details of performance for this Award can be found on page 148 of the Annual Report and Accounts 2024. The share price on the date the Award vested (111.7 pence) has been
used to recalculate the value of the Award for single figure purposes. Dividend equivalents were paid in shares.
PSP Awards granted during 2025
The tables below set out the PSP Awards granted during the year and the corresponding performance measures. The Committee considers that the measures provide a good overall balance in assessing our
longer term performance against our business strategy, with targets reviewed to reflect market conditions and business forecasts for the Group at the time of the award. The rationale for the measures and targets
approved for the 2025 PSP Awards can be found on page 151 in the Annual Report and Accounts 2024.
% of award vesting | |||||||
Face value | if threshold | End of | |||||
of award at | Number of shares | performance | performance | ||||
Executive Director | Award type | % of salary | Grant date | maximum vesting | granted | achieved | period |
Jennie Daly (a) | Nil-cost option | 200 | 06/03/2025 | £1,591,350 | 1,425,727 | 25 | 31/12/2027 |
Chris Carney (a) | Nil-cost option | 200 | 06/03/2025 | £1,070,872 | 959,419 | 25 | 31/12/2027 |
(a) The share price (111.6 pence) used to calculate the number of shares awarded to Jennie and Chris was based on the average closing share price over the three business days prior to grant (3, 4 and 5 March 2025).
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Threshold | Maximum | |||
Performance measure | Rationale | Weighting | (25%) | (100%) |
TSR vs homebuilder | Align the rewards received by | 40% | Median | Upper |
peer group (a) | executives with the returns received | quartile | ||
by shareholders | ||||
Operating profit margin | Optimise sales prices and improve | 15% | 12% | 15% |
in 2027 (b) | cost discipline | |||
RONOA in 2027 | Maintain focus on driving increased | 15% | 12% | 15% |
capital efficiency | ||||
Customer service | Maintain customer trust and | 15% | 12.55 | 12.58 |
performance in | endorse Company reputation | |||
2025 to 2027 (c) | ||||
Carbon reduction in 2027 | Support the Board’s strategy on | 15% | 36% | 44% |
(from a 2019 baseline) (d) | carbon emissions reductions | |||
across our operations |
(a) The peer group comprises Barratt Redrow, Bellway, Berkeley Homes, Crest Nicholson, MJ Gleeson, Persimmon, and
Vistry Group. The measurement approach is to be on a straight-line basis between the median TSR and upper quartile TSR.
(b) In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027, the Group has
renamed operating profit and operating profit margin to adjusted operating profit and adjusted operating profit margin
respectively. The calculation methodologies for the measures are unchanged. Read more on page 81.
(c) The score out of five will be the average of the customer satisfaction scores relating to build quality and the service received
after completion taken from the independently verified HBF 8-week and 9-month surveys, with 50% equal contribution.
(d) The targets are based on absolute carbon emissions reductions from Taylor Wimpey’s 2019 baseline, to be achieved by
31 December 2027, which requires a reduction in the Company’s absolute scope 1 and scope 2 emissions.
Payments for loss of office and payments to
former Directors (audited)
No payments were made for loss of office or to former Directors during 2025.
Executive Directors’ interests in the Company’s share
schemes (audited)
Details of the options and conditional awards over shares held by the Executive Directors who served
during the year are as follows:
Additional | |||||
maximum | |||||
Maximum | potential | Maximum | |||
potential | shares | Exercised/ | potential | ||
shares as at | awarded | released | Lapsed during | shares as at | |
Director | 01/01/2025 | during the year | during the year | the year | 31/12/2025 (a) |
Jennie Daly | |||||
PSP (b) | 3,456,454 | 1,425,727 | 619,862 | 521,690 | 3,740,629 |
Sharesave (c) | 36,057 | – | – | – | 36,057 |
Total | 3,492,511 | 1,425,727 | 619,862 | 521,690 | 3,776,686 |
Chris Carney | |||||
PSP | 2,307,487 | 959,419 | 407,094 | 342,619 | 2,517,193 |
Sharesave | 36,057 | – | – | – | 36,057 |
Total | 2,343,544 | 959,419 | 407,094 | 342,619 | 2,553,250 |
(a) All outstanding awards are options. The Directors do not hold any vested but unexercised share options.
(b) The Executive Directors exercised their 2022 PSP Award on 27 February 2025 when the share price was 111.7 pence.
Jennie Daly’s options were awarded on 26 April 2022 using a share price of 131.4 pence. Chris Carney’s options were
awarded on 10 March 2022 using a share price of 130.7 pence to calculate the Award. The share price used to calculate the
number of shares under each Award was based on the average during the three days leading up to the Award. Further details
of the shares awarded under the 2025 PSP Award can be found on page 151.
(c) Jennie Daly and Chris Carney each hold 36,057 Sharesave options which were granted on 3 October 2022 at an option price
of 83.20 pence, which was a 20% discount to the share price at the start of the invitation window. The face value of these
options on the date of grant for Jennie and Chris was £32,603 each. The Sharesave options are not subject to any
performance conditions.
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Remuneration Committee report continued
Single total figure of remuneration for the Chair and
Non Executive Directors (audited)
Total fees (£000) | ||
2025 | 2024 | |
Robert Noel | 353 | 343 |
Mark Castle | 79 | 77 |
Martyn Coffey (a) | 68 | 6 |
Irene Dorner | 68 | 66 |
Jitesh Gadhia (b) | 105 | 86 |
Scilla Grimble (c) | 87 | 72 |
Clodagh Moriarty | 68 | 66 |
(a) Martyn Coffey joined the Board on 1 December 2024.
(b) Jitesh Gadhia became Senior Independent Director with effect from 1 December 2024 and therefore received the additional
Senior Independent Director fee for the remainder of the year in 2024 and 2025.
(c) Scilla Grimble was appointed as Chair of the Audit Committee with effect from 1 September 2024 and therefore received the
additional Audit Committee Chair fee for the remainder of the year in 2024 and 2025.
Chair and Non Executive Director fees
The current fees for the Chair of the Board, Non Executive Director and additional fees for the roles of
Chair of the Audit Committee, Chair of the Remuneration Committee, Senior Independent Director and
Employee Champion are set out below and remain the same as in 2025. The fees will be reviewed
during the course of 2026.
As at | |
Role | 1 April 2026 |
Chair of the Board | £355,400 |
Non Executive Director | £68,960 |
Senior Independent Director | £18,570 |
Audit/Remuneration Committee Chair | £18,570 |
Employee Champion | £10,610 |
Statement of Directors’ shareholdings and share interests (audited)
In line with the current Policy, the Executive Directors’ shareholding guideline is to hold 200% of their
base salary. As explained on page 138, the 2026 Policy proposes an increase to 250% of salary in line
with the maximum PSP opportunity.
In addition, a post-employment shareholding guideline requires Executive Directors to retain
shares worth 200% of their base salary, or their shareholding at the time of cessation if this requirement
has not yet been met, for at least two years post-employment. Any shares that remain subject to
holding or deferral periods must be held within the Company’s Employee Benefit Trust, and will
continue to be retained through this mechanism until the end of the post-employment shareholding
requirement timeframe.
The Chair and the Non Executive Directors are also encouraged to hold shares in the Company in
order to align their interests with those of shareholders.
Outstanding interests | Value of | |||||
Beneficially owned | in share schemes | beneficially | ||||
owned shares | Share interests | |||||
as at | expressed as a | |||||
Director | at 01/01/2025 | at 31/12/2025 (a) | PSP (b) | Sharesave | 31/12/2025 | % of salary (c) |
Robert Noel | 332,872 | 332,872 | ||||
Jennie Daly (d) | 965,700 | 1,633,838 | 3,740,629 | 36,057 | £1,756,376 | 207 |
Chris Carney (d) | 1,120,985 | 1,541,323 | 2,517,193 | 36,057 | £1,656,922 | 300 |
Mark Castle | 47,934 | 52,086 | ||||
Martyn Coffey | 31,500 | 31,500 | ||||
Irene Dorner | 164,952 | 164,952 | ||||
Jitesh Gadhia | 100,000 | 100,000 | ||||
Scilla Grimble | 15,000 | 15,000 | ||||
Clodagh Moriarty | 25,025 | 25,025 | ||||
(a) Shares owned outright include the net-of-tax shares delivered to the Executive Directors in March 2023, March 2024 and
March 2025, following the one-third deferral of the EIS in respect of performance years 2022, 2023 and 2024. The EIS
deferred shares are not subject to further performance conditions.
(b) Vesting is subject to the achievement of performance conditions.
(c) This has been calculated on the basis of beneficially owned shares. The share price on 31 December 2025 (107.5 pence) has
been used to calculate Jennie Daly and Chris Carney’s share interests expressed as a percentage of their current salary as at
31 December 2025.
(d) A proportion of shares are held by a connected person.
The only changes to the Directors’ interests as set out above during the period between 31 December
2025 and 4 March 2026 were the regular monthly purchases of shares and one-to-one matching by the
Company under the SIP by Jennie Daly and Chris Carney who both acquired 556 shares each.
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Historic TSR performance and Chief Executive historic remuneration
The graph below shows Taylor Wimpey’s TSR performance against the performance of the FTSE 350 and the average of the Housebuilders Index. These benchmarks have been chosen as Taylor Wimpey
is a constituent of both.
The graph also shows the Chief Executive’s single total figure of remuneration over the same ten-year period.
TSR versus Chief Executive total single figure
0
50
100
150
200
250
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
31/12/2015
31/12/2016
31/12/2017
31/12/2018
31/12/2019
31/12/2020
31/12/2021
31/12/2022
31/12/2023
31/12/2024
31/12/2025
TSR – Value (£) (rebased)
Chief Executive Total Remuneration (£000)
Taylor Wimpey
FTSE 350
Housebuilders Index
Chief Executive
total remuneration
Single total figure (£000) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
Jennie Daly | – | – | – | – | – | – | – | 1,175 (a) | 2,208 | 2,851 (b) | 2,687 |
Pete Redfern | 6,888 | 4,072 | 3,697 | 3,272 | 3,247 | 1,120 | 2,710 | 925 | – | – | – |
EIS (% of maximum) | |||||||||||
Jennie Daly | – | – | – | – | – | – | – | 76 | 91 | 94 | 53 |
Pete Redfern | 78 | 80 | 66 | 96 | 50.6 | – | 95 | 76 | – | – | – |
PSP (% of maximum) | |||||||||||
Jennie Daly | – | – | – | – | – | – | – | 32.3 | 40 | 54.3 | 70 |
Pete Redfern | 100 | 81 | 78 | 50 | 62.8 | 6.6 | 22.1 | 32.3 | – | – | – |
(a) Relates to the period Jennie Daly was Chief Executive from 26 April 2022.
(b) The 2024 figure has been restated to reflect the share price on the date the 2022 PSP Award vested, which was 111.7 pence.
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Remuneration Committee report continued
CEO pay ratio
Chief Executive | ||||||
Year | Method | single figure (a) | Lower quartile | Median | Upper quartile | |
2025 (b) | Option B | £2,686,756 | Ratio | 67:1 | 50:1 | 33:1 |
Salary | £33,962 | £42,123 | £65,857 | |||
Total pay and benefits | £39,850 | £53,754 | £82,619 | |||
2024 | Option B | £3,065,841 | Ratio | 81:1 | 59:1 | 39:1 |
2023 | Option B | £2,185,041 | Ratio | 68:1 | 42:1 | 32:1 |
2022 | Option B | £2,100,044 | Ratio | 62:1 | 41:1 | 26:1 |
2021 | Option B | £2,764,290 | Ratio | 87:1 | 60:1 | 40:1 |
2020 | Option B | £1,120,451 | Ratio | 39:1 | 26:1 | 20:1 |
2019 | Option B | £3,023,654 | Ratio | 93:1 | 73:1 | 48:1 |
2018 | Option B | £3,151,748 | Ratio | 103:1 | 77:1 | 41:1 |
(a) The previous Chief Executive single figures in this table have not been restated to reflect the share price on the date the
relevant PSP Award vested. We have chosen to do this for transparency purposes so that we are comparing the ratios
disclosed in previous reports.
(b) The three representative employees were determined on 31 December 2025.
Under Option B, using the hourly rate from our 2025 gender pay gap data, three employees have been
identified as the best equivalents of our lower quartile, median and upper quartile. Option B provides
a clear methodology involving fewer adjustments to calculate full-time equivalent earnings and is likely to
produce more robust reporting year on year. The Company believes that the median pay ratio for the year
ended 31 December 2025 is consistent with the pay and reward policies for UK employees taken as a
whole, as the employee identified at the median through the Option B methodology is representative of
the wider UK workforce and reflects the normal operation of our pay and reward policies.
The Committee has reviewed the results of the calculations and is satisfied that they continue to be
representative of the respective quartiles. Total pay and benefit figures, excluding any temporary
allowances paid during the financial year ended 31 December 2025, have been calculated for the
employee at each quartile. To ensure that the employees used for each quartile are representative of
their contractual roles, any temporary allowances have been excluded consistent with previous years.
Figures have also been calculated for employees either side of the identified employees to confirm that
the individuals selected are a reasonably representative based on their full year’s remuneration.
Due to a reduction in the Chief Executive single figure for 2025, all three ratios have decreased.
The reduction in the Chief Executive single figure was a result of a lower bonus payout (53% in 2025
vs 94% in 2024). This was partially offset by a higher base salary and a higher PSP payout (70.0% in
2025 vs 54.3% in 2024).
Relative importance of spend on pay
Change in Company performance relative to change in remuneration
2025 | 2024 | Change | |
Adjusted operating profit (a) | £420.6m | £416.2m | 1.1% |
Distributions to shareholders | |||
Aggregate dividends paid during the year | £330.4m | £339.4m | (2.7)% |
Employee pay in aggregate (b) | £299.6m | £290.2m | 3.2% |
Employee pay average per employee (b) | £66,637 | £65,096 | 2.4% |
(a) Adjusted operating profit is defined as profit on ordinary activities before financing, exceptional items and tax, after share of results
of joint ventures. Adjusted operating profit has been chosen as it is one of the Company’s primary measures of performance.
(b) See Note 7 to the financial statements on page 189.
Malus and clawback
Any payments under the EIS or vesting of shares under the PSP are subject to malus and
clawback provisions.
Under the PSP, the Committee may apply malus in exceptional circumstances, including misconduct,
reputational damage, failure of risk management, poor underlying performance, payments based on
erroneous or misleading data, misstatement of accounts or corporate failure. Clawback may be applied
in similarly exceptional circumstances, for up to three years from the vesting date. As noted on page
132, shareholders are being asked to approve new PSP rules at the 2026 AGM. A summary of the
malus and clawback provisions contained in the new rules can be found on page 246.
Under the EIS, the Committee may apply malus and clawback if the Committee forms the view that
there has been a material misstatement of results, performance assessments that were based on
inaccurate and misleading information, serious misconduct that could have warranted summary
dismissal, behaviour inconsistent with the Company’s governance and values, or misconduct resulting in
reputational damage or corporate failure. Clawback may be applied for up to three years from the date
the bonus is paid.
The Committee considers that a three-year clawback period for both the EIS and PSP is appropriate,
as it provides sufficient time for any relevant circumstances to come to light and reflects the cyclical
nature of the homebuilding industry.
The Committee did not apply malus or clawback during 2025.
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Remuneration Committee report continued
Annual percentage change in remuneration of Directors and employees
The table below shows the percentage change in the salary or fee, taxable benefits and annual bonus of each current Director and the average Taylor Wimpey employee in respect of the periods from 2020 to
2025. The Company does not have any employees so the figures shown are in relation to Taylor Wimpey UK Limited employees.
Salary/fee (a) | Benefits | Annual bonus scheme (a) | |||||||||||||
2025/2024 | 2024/2023 2023/2022 2022/2021 2021/2020 | 2025/2024 | 2024/2023 2023/2022 2022/2021 2021/2020 | 2025/2024 | 2024/2023 2023/2022 2022/2021 2021/2020 | ||||||||||
Average pay of a Taylor Wimpey employee | 2% | 6% | 8% | 4% | 6% | 3% | 9% | 4% | 3% | 3% | (20)% | 15% | 10% | (10)% | 163% |
Jennie Daly (b) | 6% | 3% | 19% | 58% | 13% | 7% | (15)% | (32)% | (55)% | 12% | (40)% | 6% | 44% | 26% | n/a |
Chris Carney (b) | 3% | 3% | 3% | 7% | 18% | 15% | 0% | 8% | (40)% | (11)% | (42)% | 6% | 23% | (14)% | n/a |
Robert Noel (c) | 3% | 33% | 189% | 11% | 23% | – | – | – | – | – | – | – | – | – | – |
Irene Dorner (d) | 3% | (57)% | (55)% | 2% | 32% | – | – | – | – | – | – | – | – | – | – |
Mark Castle (e) | 3% | 7% | n/a | n/a | n/a | – | – | – | – | – | – | – | – | – | – |
Martyn Coffey (f) | n/a | n/a | n/a | n/a | n/a | – | – | – | – | – | – | – | – | – | – |
Jitesh Gadhia (g) | 22% | 4% | 8% | n/a | n/a | – | – | – | – | – | – | – | – | – | – |
Scilla Grimble (h) | 21% | 11% | n/a | n/a | n/a | – | – | – | – | – | – | – | – | – | – |
Clodagh Moriarty (i) | 3% | 2% | n/a | n/a | n/a | – | – | – | – | – | – | – | – | – | – |
(a) In light of the COVID-19 pandemic, the Executive and Non Executive Directors took a voluntary 30% reduction in base salary and fees from 1 April 2020 to 31 July 2020. The Executive Directors’ 2020 EIS was also cancelled.
(b) Jennie Daly was appointed as Chief Executive with effect from 26 April 2022 and received an above average salary increase on 1 April 2025. Chris Carney received a salary increase on 1 July 2021.
(c) Robert Noel was appointed as the Senior Independent Director on 20 April 2020 and Employee Champion on 26 April 2022. Robert was then appointed Chair of the Board and stood down as the Senior Independent Director and Employee Champion on
27 April 2023.
(d) Irene Dorner stood down as Chair and became a Non Executive Director on 27 April 2023.
(e) Mark Castle was appointed to the Board on 1 June 2022 and as Employee Champion on 27 April 2023.
(f) Martyn Coffey was appointed to the Board on 1 December 2024.
(g) Jitesh Gadhia was appointed to the Board on 1 March 2021. Jitesh was then appointed as Chair of the Remuneration Committee on 26 April 2022 and as the Senior Independent Director on 1 December 2024.
(h) Scilla Grimble was appointed to the Board on 1 March 2021. Scilla was then appointed as Chair of the Audit Committee on 1 September 2024.
(i) Clodagh Moriarty was appointed to the Board on 1 June 2022.
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Remuneration Committee report continued
Approach to remuneration in 2026
2026 salary review
As outlined in the Committee Chair’s letter, the Committee has approved a 3% increase to Jennie Daly
and Chris Carney, in line with the Company-wide average salary increase.
As at 1 April | As at 1 April | ||
Executive Director | 2025 | 2026 | Change |
Jennie Daly | £850,000 | £875,500 | 3% |
Chris Carney | £551,499 | £568,044 | 3% |
2026 EIS
Subject to shareholders approving the new Policy at the 2026 AGM, Executive Directors will be able to
earn up to 200% of salary under the 2026 EIS.
The EIS performance measures for 2026 remain in line with those used in 2025, with a 70% weighting
on financial performance, recognising the importance in changing market conditions. The measures are
set out in the table below, and the strategic rationale for their inclusion and how they drive performance
towards our medium term targets is set out on page 134. The target ranges were carefully considered,
ensuring an appropriate balance between achievability and stretch, and were set at the start of 2026.
As the EIS performance targets for the year are considered commercially sensitive, the 2026 EIS targets
will be disclosed retrospectively in the Annual Report and Accounts 2026, together with the associated
weightings and performance outcomes in the usual way.
Performance measure | Weighting |
Adjusted operating profit (a) | 30% |
Adjusted operating profit margin (a) | 20% |
Cash conversion | 20% |
Build quality (b) | 15% |
Customer service (c) | 15% |
(a) In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027, the Group has
renamed operating profit and operating profit margin to adjusted operating profit and adjusted operating profit margin
respectively. The calculation methodology for the measures is unchanged. Read more on page 81.
(b) Build quality is measured externally through the NHBC CQR.
(c) This will be based on the independently verified HBF weighted customer satisfaction scores for Build Quality and Service After
taken from the 8-week and 9-month surveys, with 50% equal contribution.
2026 PSP Awards
Subject to shareholders approving the new Policy at the 2026 AGM, Executive Directors will be able to
earn up to 250% of salary under the 2026 PSP.
The measures and targets for the 2026 PSP Award are set out in the table below. The strategic rationale
for their inclusion as measures, and details on how they drive performance towards our medium term
targets are set out on page 134.
Threshold | Maximum | ||
Performance measure | Weighting | (25%) | (100%) |
Upper | |||
TSR vs homebuilder peer group (a) | 40% | Median | quartile |
Adjusted operating profit margin (2028) (b) | 15% | 13% | 16% |
RONOA (2028) | 15% | 14% | 19% |
Customer service (2026-2028) (c) | 15% | 12.63 | 12.75 |
Carbon reduction (from a 2019 baseline) (2028) (d) | 15% | 39% | 48% |
(a) The peer group comprises Barratt Redrow, Bellway, Berkeley Homes, Crest Nicholson, MJ Gleeson, Persimmon and
Vistry Group. The measurement approach for the 2026 PSP Award will be on a straight-line basis between the median
TSR and upper quartile TSR.
(b) An adjusted operating profit margin measure will operate in both the EIS and PSP in 2026 as this is a critical measure at both
an operational level for the EIS and over the longer term for the PSP (where margin will be assessed at the end of the
three-year performance period). This will ensure that our priority remains delivering our sustained profitability with an
unremitting focus on long term decisions with cost and process discipline to drive shareholder returns over the medium term.
In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027, the Group has
renamed operating profit and operating profit margin to adjusted operating profit and adjusted operating profit margin
respectively. The calculation methodologies for the measures are unchanged. Read more on page 81.
(c) The score out of five will be the average of the customer satisfaction scores for Build Quality and Service After, taken from
the independently verified HBF 8-week and 9-month surveys, with 50% equal contribution. The 2026 PSP and EIS customer
service measures will therefore be on the same basis, but to avoid doubling up of reward for the same performance, the PSP
measure will be assessed on the aggregate of the annual scores over the relevant performance period and not the final year.
Customer service continues to be an extremely important area of focus for the Company and we are therefore comfortable
that this should be incorporated in both the EIS and PSP. The HBF’s new star rating combines customers’ service before and
moving in experience via the 8-week surveys, as well as service after and customers’ experience of living longer term in one
of our developments, via the 9-month survey. By including the new star rating, we are ensuring that customer experience
over both time frames is still measured.
(d) This will be based on a reduction in absolute scope 1 and 2 carbon emissions, and the target range takes into account the
anticipated higher volumes in 2028. The carbon reduction target is based on absolute carbon emission reductions to be
achieved by 31 December 2028, which is aligned with our ambitious publicly announced 2045 Net Zero Transition Plan.
158
Taylor Wimpey plc
Annual Report and Accounts 2025
Remuneration Committee report continued
The Remuneration Committee
The Remuneration Committee members in 2025
There were five Committee meetings during 2025 and all Committee members attended all five
meetings. The Committee met the 2024 Code requirement to have three independent Non Executive
Directors as members of the Committee. The names of the Committee members can be found on
page 129.
Internal attendees consisted of the Chief Executive, Group Finance Director, Group Human Resources
Director, Head of Reward, Sustainability Manager and members of the Company Secretariat team.
These attendees provided important information to the Committee and were not involved in any
decisions relating to their own remuneration.
Main activities during 2025
Over the course of the year since the last Annual Report and Accounts, the Committee has:
• Consulted with shareholders regarding the minority vote against the Directors’ Remuneration Report
at the 2025 AGM
• Reviewed the Policy ahead of the 2026 AGM and engaged with shareholders on the
proposed changes
• Determined the 2025 salary levels for the Chief Executive, Group Finance Director, senior
management and wider workforce
• Agreed the targets applicable to the 2025 EIS and 2025 PSP Award
• Approved the outcomes for the 2024 EIS and 2023 PSP Award
• Considered wider workforce remuneration arrangements
Committee’s performance
The Committee reviewed its activities in 2025 against its Terms of Reference and discharged its
responsibilities in accordance with them. The Committee’s Terms of Reference have been reviewed
against the 2024 Code and best practice, with minor amendments approved by the Committee at its
February 2025 meeting.
The results of the 2025 internal Board performance review concluded that the Committee was fulfilling
its Terms of Reference effectively and that the Committee Chair was effective.
Advice to the Committee in 2025
The Committee keeps itself fully informed on developments and best practice in the field of
remuneration and seeks advice from external advisers when appropriate.
The Committee appoints its own independent remuneration advisers, and during the year it continued to
retain the services of Korn Ferry. Korn Ferry is a member of the Remuneration Consultants Group and
signatory to its Code of Conduct. Korn Ferry was appointed following a comprehensive tender process.
Korn Ferry does not have any connection with the Company or any of the individual Directors, and did
not provide any other services to the Company during 2025.
As part of its annual review of activities against its Terms of Reference, the Committee considered the
advice provided by Korn Ferry during the year and was satisfied that the advice had been appropriate,
objective and independent.
The fees paid to Korn Ferry in 2025 were £194,256 (including VAT) on a time and materials basis
(2024: £149,988).
Shareholder voting
The table below sets out the shareholder voting outcomes on the Directors’ remuneration resolutions.
Further details on the reasons for the minority vote against the Directors’ Remuneration Report at the
2025 AGM are provided in the Committee Chair’s letter on page 132.
Resolution |
For |
Against |
Total votes cast |
Withheld |
Directors’ Remuneration Report |
1,487,477,643 |
525,355,936 |
2,012,833,579 |
12,485,365 |
for 2024 (2025 AGM) |
73.90% |
26.10% |
||
Directors’ Remuneration Policy |
2,155,740,993 |
195,311,797 |
2,351,052,790 |
453,054 |
(2023 AGM) |
91.69% |
8.31% |
This Report has been approved by the Board and signed on its behalf by:
Lord Jitesh Gadhia
Chair of the Remuneration Committee
Statutory, regulatory and other information
Introduction
This section contains the remaining matters that the Directors are required to report on each year which
are not included elsewhere in this Annual Report and Accounts. Certain matters which are required to be
reported on appear in other sections of this Annual Report and Accounts, as set out below:
Matter
Page(s) in this
Annual Report
and Accounts
Strategic report, specifically:
3 to 89
– Likely future developments in the business of the Company
3 to 89
– Carbon footprint reporting
51 to 65
– Greenhouse gas emissions reporting
65
– Stakeholder engagement
84 to 89
– A description of the Company’s employee engagement practices
85, 108 and 109
– A statement of the Company’s engagement with employees in relation to
financial and economic factors that affect the performance of the Company
85
– Charitable donations
20 and 85
– Research and development activities
28
– Viability statement
82 and 83
2024 Code compliance statement
100 and 101
Directors
92 to 94
A description of how the Board assesses and monitors culture
108 to 110
Retirement and re-election of Directors
113, 238 and 239
Remuneration Committee report
129 to 158
Profit before taxation and profit after taxation
173
Changes in asset values
175
Statement on the Group’s treasury management and funding, including information on the
exposure of the Company in relation to the use of financial instruments
198 to 201
Subsidiaries and associated undertakings, including branches outside the UK
223 to 231
Directors’ dividend recommendation
233
Web communications with shareholders
248
Registrar
250
A statement, summarising the Directors’ business relationships with suppliers,
customers and others
85
Specific disclosures required under Listing Rule 6.6.1 as appropriate to the Company:
Details of the Company’s long term incentive schemes
129 to 158
Shareholder waiver of future dividends
160
Articles of Association
The Company’s Articles of Association (the Articles) were adopted on 22 April 2021. The Articles may
only be amended by a special resolution of the shareholders in a general meeting.
Appointment and replacement of Directors
The Company’s Articles, the 2024 Code and the Companies Act 2006 govern the appointment and
retirement of Directors. Directors follow the 2024 Code and stand for re-election annually, as described
on pages 238 and 239. Board membership and biographical details of the Directors are provided on
pages 92 to 94.
Qualifying third party indemnity
In accordance with Section 234 of the Companies Act 2006 and following advice from Slaughter and
May, the Company has granted an indemnity in favour of its Directors and officers and those of its
Group companies, including the Trustee Directors of its Pension Trustee Company, for this financial
year and at the date of this report. The indemnity is against the financial exposure that they may
incur in the course of their professional duties as Directors and officers of the Company and/or its
subsidiaries/affiliates.
Audit and Auditors
Each Director has, at the date of approval of this Annual Report and Accounts, formally confirmed that:
• To the best of their knowledge, there is no relevant audit information of which the Company’s external
Auditors are unaware
• They have taken all the steps they ought to have taken to make themselves aware of any relevant
audit information and to establish that the Company’s external Auditors are aware of that information
This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of
the Companies Act 2006. Read more on page 162.
Annual General Meeting (AGM)
The AGM will be held at 10:30 am on 28 April 2026 in the Garden Suite at the Crowne Plaza Gerrards
Cross, Oxford Road, Beaconsfield, HP9 2XE.
Formal notice of the AGM is set out on pages 234 to 247 and on the Company’s website.
159
Financial statements
Shareholder information
Strategic report
Directors’ report
Statutory, regulatory and other information continued
Capital structure
Details of the Company’s issued share capital, together with information on movements in the
Company’s issued share capital during the year, are shown in Note 23 on page 208.
The Company has two classes of shares:
• Ordinary shares of 1 pence, each of which carries the right to one vote at general meetings of the
Company and other such rights and obligations, as are set out in the Company’s Articles
• Deferred shares, which carry no voting rights
The powers of the Company’s Directors in relation to issuing or buying back the Company’s shares are
limited to those approved at the AGM.
The Company has announced a £52 million share buyback programme under the Company’s updated
Distribution Policy. The buyback programme is expected to commence on 5 March 2026 and to
conclude no later than 30 June 2026. The programme will commence using the existing authority
approved by shareholders at the 2025 AGM to purchase up to 354,006,117 ordinary shares.
The Board intends to use this authority, having carefully considered market conditions, the Company’s
share price, alternative investment opportunities, appropriate gearing levels and the overall financial
position of the Company.
Pursuant to the share buyback programme, the Board intends that 25 million of the repurchased shares
will be held in treasury and the remaining shares will be cancelled. Shares held in treasury are intended
to be used to satisfy future obligations under the Company’s employee share schemes.
During 2025, the Company re-issued 4,863,506 treasury shares to satisfy obligations under its
employee share schemes. In addition, up to the latest practicable date prior to finalising this Annual
Report and Accounts, a further 2,220,959 treasury shares had been re-issued in 2026. The Company
currently holds 9,869,988 shares in treasury.
There are no specific restrictions on the size of a holding, the exercise of voting rights, or the transfer of
shares, which are governed by the Company’s Articles and prevailing legislation. The Directors are not
aware of any agreement or agreements between holders of the Company’s shares that may result in
restrictions on the transfer of securities or voting rights.
The Taylor Wimpey Employee Benefit Trust (EBT), which holds shares on trust for employees under the
Company’s various share schemes, generally abstains from voting at shareholder general meetings in
respect of shares held by it.
No person has any special rights of control over the Company’s share capital and all issued shares are
fully paid.
Substantial interests
The persons set out in the table below have notified the Company pursuant to Rule 5.1 of the Disclosure
Guidance and Transparency Rules of their interests in the ordinary share capital of the Company.
Since 31 December 2025, BlackRock Inc notified the Company of a change in their interest which is
reflected in the table below. According to the Register of Members, no other shareholder, other than
those noted in the table below, have a disclosable holding of the Company’s issued share capital.
As at 31 December 2025
As at 26 February 2026
Number of shares
held (millions)
Percentage of
issued voting
share capital
Number of shares
held (millions)
Percentage of
issued voting
share capital
BlackRock Inc
352.7
9.94%
357.1
10.06%
Legal & General Group Plc
98.5
3.02%
98.5
3.02%
Standard Life Investments Limited
96.4
3.02%
96.4
3.02%
Directors’ interests in the Company’s shares are shown in the Remuneration Committee report on
page 153.
Dividend
The 2024 final ordinary dividend of 4.66 pence per share was paid to shareholders on 9 May 2025
and the 2025 interim ordinary dividend of 4.67 pence per share was paid to shareholders on
14 November 2025.
Subject to shareholder approval at the 2026 AGM, the 2025 final ordinary dividend of 2.95 pence
per share will be paid on 15 May 2026 to shareholders on the register at the close of business on
7 April 2026. The Company will be operating a DRIP for shareholders in the United Kingdom.
More information can be found on pages 237 and 238.
The right to receive any dividend has been waived in part by the Trustees of the Company’s EBT over
that Trust’s combined holding of 3,609,637 shares, as at 26 February 2026. More information about
the EBT can be found in Note 26 on page 209.
Taylor Wimpey plc
Annual Report and Accounts 2025
160
Statutory, regulatory and other information continued
Important post-balance sheet events since the year end
There have been no important post-balance sheet events affecting the Company or any of its subsidiary
undertakings since 31 December 2025.
Political donations
The Company has a policy of not making donations to political parties, has not made any during 2025,
and does not intend to do so going forward. More information can be found on page 240.
Agreements
The Company’s borrowing and bank facilities contain the usual change of control provisions, which
could potentially lead to prepayment and cancellation by the other party upon a change of control of the
Company. There are no other significant contracts or agreements which take effect, alter or terminate
upon a change of control of the Company.
Modern Slavery Act
The Company supports the aims and objectives of the Modern Slavery Act 2015 (MSA) and continues
to take its responsibilities under the legislation with the seriousness it deserves and requires.
The Company will shortly be publishing its latest MSA statement on the Company’s website.
Employee share ownership
The Company promotes employee share ownership as widely as possible across the Company.
The Company has two all-employee share plans, the Save As You Earn share option plan and the
Share Incentive Plan, which are offered to all UK-based employees once they have worked for the
Company for three months.
The Company also offers employees who do not participate in the Executive Incentive Scheme
(cash bonus scheme) the opportunity to exchange their cash bonus for shares in the Company,
including a 20% enhancement to the value of their bonus. The scheme has operated since 2012 and
in 2025 resulted in 741,204 shares (2024: 521,299) being acquired by 209 employees (2024: 197).
Details of how these plans operate appear in the Remuneration Committee report on pages 129
to 158.
The percentage of our employees who hold shares in the Company, or participate in a share plan,
is 58% (2024: 60%).
Employment of people with disabilities
We foster a culture of inclusion and value diversity positively, which creates a better workplace and
delivers stronger outcomes. We commit to treating all our job applicants and employees fairly and with
respect, irrespective of background, disability or any other protected characteristic. This is reflected in
the fact that overall disclosure for disability status has increased from 19.4% to nearly 40%, which
underpins that our culture embraces transparency and support. We offer any employee assistance with
regards to reasonable adjustments during the application process or with their working conditions or
environment, and are proud to confirm that we remained a Level 2 Disability Confident Employer during
2025. You can read more about our disability action plan in our Diversity and Inclusion Report which will
shortly be available on our website.
Statement of Directors’ responsibilities in respect of the financial statements
The Directors are responsible for preparing the Annual Report and Accounts and the financial
statements in accordance with applicable law and regulation.
Company law requires the Directors to prepare financial statements for each financial year. Under
that law the Directors have prepared the Group financial statements in accordance with UK-adopted
international accounting standards and the Company financial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising
FRS 101 ‘Reduced Disclosure Framework’, and applicable law).
Under company law, Directors must not approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of
the Group for that period. In preparing the financial statements, the Directors are required to:
• Select suitable accounting policies and then apply them consistently
• State whether applicable UK-adopted international accounting standards have been followed for the
Group financial statements and United Kingdom Accounting Standards, comprising FRS 101 have
been followed for the Company financial statements, subject to any material departures disclosed
and explained in the financial statements
• Make judgements and accounting estimates that are reasonable and prudent
• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the Group and Company will continue in business
161
Financial statements
Shareholder information
Strategic report
Directors’ report
Statutory, regulatory and other information continued
The Directors are responsible for safeguarding the assets of the Group and Company and hence for
taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are also responsible for keeping adequate accounting records that are sufficient to show
and explain the Group’s and Company’s transactions, and disclose with reasonable accuracy at any
time the financial position of the Group and Company and enable them to ensure that the financial
statements and the Directors’ Remuneration Report comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation in
the United Kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Annual Report and Accounts 2025 – Fair, balanced and understandable
The outcome of the process undertaken by the Audit Committee, which is described on page 128, was
that the Board confirmed that the Annual Report and Accounts 2025, taken as a whole, is fair, balanced
and understandable, and provides the necessary information for shareholders to assess the Company’s
position, performance, business model and strategy.
More detail on how the Board and the Audit Committee have addressed the assessment, control
and mitigation of risk, and the oversight of the internal and external audit functions, appear in the
Audit Committee report on pages 120 to 128.
Directors’ confirmations
Each of the Directors, whose names and functions are listed in the Board of Directors biographies,
on pages 92 to 94, confirm that, to the best of their knowledge:
• The Group financial statements, which have been prepared in accordance with UK-adopted
international accounting standards, give a true and fair view of the assets, liabilities, financial position
and profit of the Group
• The Company’s financial statements, which have been prepared in accordance with United Kingdom
Accounting Standards, comprising FRS 101, give a true and fair view of the assets, liabilities and
financial position of the Company
• The Strategic report includes a fair review of the development and performance of the business and
the position of the Group and Company, together with a description of the principal risks and
uncertainties that it faces
This Directors’ report and responsibility statement was approved by the Board of Directors on
4 March 2026 and is signed on its behalf by:
Ishaq Kayani
Group General Counsel and Company Secretary
4 March 2026
Taylor Wimpey plc
Annual Report and Accounts 2025
162
In this section
Independent auditors’ report
164
Consolidated income statement
173
Consolidated statement of comprehensive income
174
Consolidated balance sheet
175
Consolidated statement of changes in equity
176
Consolidated cash flow statement
177
Notes to the consolidated financial statements
178
Company balance sheet
216
Company statement of changes in equity
217
Notes to the Company financial statements
218
Particulars of subsidiaries, associates and joint ventures
223
Five year review
232
Financial
statements
163
Shareholder information
Strategic report
Financial statements
Directors’ report
Independent auditors’ report to the members of Taylor Wimpey plc
Report on the audit of the financial statements
Opinion
In our opinion:
• Taylor Wimpey plc’s Group financial statements and Company financial statements (the “financial
statements”) give a true and fair view of the state of the Group’s and of the Company’s affairs as
at 31 December 2025 and of the Group’s profit and the Group’s cash flows for the year then ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted
international accounting standards as applied in accordance with the provisions of the Companies
Act 2006;
• the Company financial statements have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 101
“Reduced Disclosure Framework”, and applicable law); and
• the financial statements have been prepared in accordance with the requirements of the Companies
Act 2006.
We have audited the financial statements, included within the Annual Report and Accounts 2025
(the “Annual Report”), which comprise:
• the Consolidated balance sheet as at 31 December 2025;
• the Company balance sheet as at 31 December 2025;
• the Consolidated income statement for the year then ended;
• the Consolidated statement of comprehensive income for the year then ended;
• the Consolidated statement of changes in equity for the year then ended;
• the Company statement of changes in equity for the year then ended;
• the Consolidated cash flow statement for the year then ended; and
• the notes to the financial statements, comprising material accounting policy information and other
explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and
applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities
for the audit of the financial statements section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the Group in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable
to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s
Ethical Standard were not provided.
Other than those disclosed in Note 6, we have provided no non-audit services to the Company or its
controlled undertakings in the period under audit.
Our audit approach
Context
Taylor Wimpey is a listed housebuilder, predominantly operating in the UK, also with a presence in Spain.
The Group focuses on the sale of private dwellings, which comprised 87% of total revenue in 2025,
with the majority of the remaining revenue generated through delivery of Partnership Housing contracts.
The Group’s consolidated financial statements are primarily an aggregation of 22 UK Business Units,
which represent the regional UK house building businesses in Taylor Wimpey UK Limited, consolidated
with the Group’s Spanish operations, Taylor Wimpey de España S.A.U., Taylor Wimpey plc, and
the share of the Group’s interests in joint ventures. For the purposes of our audit, we considered
Taylor Wimpey UK Limited, Taylor Wimpey de España S.A.U., Taylor Wimpey plc and consolidation
adjustments to be separate components.
Taylor Wimpey plc
Annual Report and Accounts 2025
164
Independent auditors’ report to the members of Taylor Wimpey plc continued
We performed process walkthroughs to understand and evaluate the key financial processes and
controls across the Group. Following this, we performed a significant amount of audit procedures
in advance of the year end, covering each of the Business Units and the central Group function.
The objective of this audit work was:
• to perform initial testing in relation to the design and operating effectiveness of the Group’s controls
we planned to place reliance on;
• to ensure that we had a clear plan as to what testing needed to be performed when and where
at year-end;
• to perform initial substantive testing, particularly where larger samples were required, or where there
had been significant one-off transactions; and
• to enable early consideration of the key sources of estimation uncertainty before the year-end. As we
undertook each phase of the audit, we regularly reconsidered our risk assessment to reflect the audit
findings, including our assessment of the Group’s control environment and the impact on our planned
audit approach.
In terms of risk assessment:
• given the nature of the Group’s operations and the methodology for recognising margin on units sold,
we considered margin recognition and site forecasting to be a significant audit area and therefore
have included this as a key audit matter; and
• we considered current Government legislation and announcements, particularly in relation to the
cladding fire safety provision, and hence also included a key audit matter in relation to this.
Overview
Audit scope
• Our Group audit included full scope audits of Taylor Wimpey UK Limited (which included the Group’s
22 UK Business Units), Taylor Wimpey plc (the “Company”) and the consolidation, including
consolidation adjustments. Taken together, the above procedures included operations covering
over 94% of revenue, over 70% of profit before tax and over 94% of net assets.
Key audit matters
• Margin recognition and site forecasting (Group)
• Cladding fire safety provision (Group)
• Valuation of investments in Group undertakings (Company)
Materiality
• Overall Group materiality: £19.5 million (2024: £30.0 million) based on approximately 5% of the
Group’s profit before tax and exceptional items (2024: a 3 year average of the Group’s profit before
tax and exceptional items).
• Overall Company materiality: £17.6 million (2024: £27.0 million) based on 1% of net assets but
capped at 90% of overall Group materiality.
• Performance materiality: £14.6 million (2024: £22.5 million) (Group) and £13.2 million
(2024: £20.3 million) (Company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most
significance in the audit of the financial statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due to fraud) identified by the auditors,
including those which had the greatest effect on: the overall audit strategy; the allocation of resources
in the audit; and directing the efforts of the engagement team. These matters, and any comments
we make on the results of our procedures thereon, were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
This is not a complete list of all risks identified by our audit.
In 2024 our key audit matter, Valuation of investments in Group undertakings (Company), also referred
to the valuation of amounts due from Group undertakings, which, following our risk assessment, is not
deemed to be a significant area of the Company audit in 2025. Otherwise, the key audit matters below
are consistent with last year.
165
Shareholder information
Strategic report
Financial statements
Directors’ report
Independent auditors’ report to the members of Taylor Wimpey plc continued
Key audit matter
How our audit addressed the key audit matter
Margin recognition and site forecasting (Group)
Refer to the Audit Committee report and Note 2 ‘Critical accounting judgements and key sources of estimation
uncertainty’ in the Group’s consolidated financial statements.
The Group’s margin recognition policy for revenue recognised at a point in time is based on the margin forecast
for each site. These margins reflect actual sales prices and costs to date, as well as estimated sales prices and
forecast costs for each site. This is a method of allocating the total forecast costs, representing land,
infrastructure and build costs, of a site to each individual unit for sale.
There is a risk that the margin forecast for the site, and consequently the margin recognised on each unit sold,
is not appropriate or reflective of the actual final margin that will be recognised on a site. As a result, excess profit
margins could be recognised earlier, to the detriment of reduced margins on units sold at the end of the site, or
vice versa. The risk is due to the high level of management estimation involved in ensuring the accuracy and
completeness of an individual site forecast, and the monitoring of these estimates over time.
Future sales prices and build costs are inherently uncertain, as they are influenced by changes in external market
factors, such as the availability and affordability of mortgages, changes in customer demand due to market
uncertainty, build cost inflation or regulatory factors. There is higher uncertainty when a site is scheduled to be
completed over a longer timeframe.
Management has implemented and operates internal controls to assess site acquisition and initial forecasts to
assist financial appraisal processes, and further controls to monitor the ongoing costs and sales prices within
these forecasts. There is a risk that these controls do not operate effectively in ensuring the accuracy and
completeness of the forecasts, which feed into the margin calculation.
We consider the accuracy of margin recognition and site forecasting in respect of revenue recognised at a point
in time, including the completeness and accuracy of costs, to be a significant financial reporting risk, and hence
significant audit risk, for the Group.
To address the significant risk over margin recognition and site forecasting, our procedures included:
•
We tested a number of key controls within the build cycle, such as:
– management’s review meetings, where the performance to date and expected outturn are updated,
reviewed and challenged for each site on a bi-monthly basis; and
– management’s review, approval and recognition of cost variations against the original site budgets.
•
We assessed management’s historical forecasting accuracy on all active sites in 2025, through comparison to
historical forecasts from 2024, as well as the initial site budget. We investigated significant differences or trends to
understand whether they were driven by items that could reasonably have been foreseen or predicted, rather than
items outside of management’s control, such as uncontracted build cost inflation;
•
We performed risk assessment procedures across the Group’s UK sites and stratified these by risk and tested
a sample of forecast costs to third party evidence, such as tender documents, or other appropriate support,
and validated that these were allocated to the correct site;
•
We tested a sample of forecast sales prices to the actual sales prices attained on similar properties, as well
as comparing prices achieved on actual sales this year to those which were forecast last year for a sample
of properties;
•
We considered a sample of risks and opportunities identified in relation to selected sites, to ensure completeness
of known costs within the site forecasts;
•
We tested a sample of actual costs incurred to third party evidence, as well as testing the allocation of costs to the
correct sites;
•
For all material housing revenue streams, we tested a sample of actual revenue recognised in the period to third
party contracts and completion statements. For the private dwelling revenue streams the revenue recognised has
also been agreed to cash receipt in the bank statements;
•
We verified, by recalculating the margins, that management’s accounting system correctly recalculates the margin
following each cost or sales price amendment made by management; and
•
We tested that management’s accounting system appropriately allocates the cost of sales associated with each
plot when a sale is made.
Based on the procedures performed, we did not identify any material misstatements within revenue and cost of
sales, and therefore the margin recognised. We also assessed the disclosures in respect of margin recognition
and site forecasting and considered these to be appropriate.
Taylor Wimpey plc
Annual Report and Accounts 2025
166
Independent auditors’ report to the members of Taylor Wimpey plc continued
Key audit matter
How our audit addressed the key audit matter
Cladding fire safety provision (Group)
Refer to the Audit Committee report, Note 2 ‘Critical accounting judgements and key sources of estimation
uncertainty’, Note 6 ‘Net operating expenses and profit on ordinary activities before financing’, and Note 22
‘Provisions’, in the Group’s consolidated financial statements.
In March 2021, the Group committed to support owners of apartment buildings it had constructed in the past
20 years, including those under 18 metres high, to achieve appropriate certification for cladding fire safety.
In April 2022, the Group signed up to the UK Government’s Building Safety Pledge for Developers (“the Pledge”),
which extended the period covered to 30 years, and committed the Group to reimbursing the Government
for any funds allocated to buildings it built from the Building Safety Fund (‘BSF’), with no further applications
permitted. In early 2023, the Group signed the long-form legal contracts for the remediation of buildings in
England and Wales. The equivalent for Scotland is expected to be signed in early 2026.
In 2025, as part of its ongoing work to meet the Government’s Remediation Action Plan deadlines, the Group
carried out intrusive investigations and updated Fire Risk Appraisal of External Walls (FRAEW) assessments
across its legacy buildings. This, together with increased engagement with chartered fire engineers, led to
a reassessment of the Group’s risk exposure on building remediation, including an updated evaluation of
buildings that have not yet undergone intrusive FRAEW assessments.
This led to a significant provision increase being recognised as at 29 June 2025, which included a reassessment
of the cost of remedial works based on recent tenders received from subcontractors. The provision was updated
at year-end for the results of further FRAEW assessments, new tenders, and other information on scope, number
of buildings and risk. After utilisation of £49.4 million during the year and the effect of discounting, the closing
provision at 31 December 2025 amounted to £412.6 million (31 December 2024: £232.3 million).
The cladding fire safety provision is disclosed as a key source of estimation uncertainty due to its size and the
inherent judgement involved where building assessments and tendering are still in progress. The provision is
estimated based on the number of buildings potentially requiring works and the associated costs, with
management increasingly relying on third-party quotations to support its estimates.
Where buildings have not yet been assessed or tendered, cost estimates are derived from the Group’s
experience on ongoing projects. The provision is inherently complex, with estimates subject to change due to
fluctuations in material and labour costs, unforeseen works, evolving industry practices, and regulatory changes.
Given the estimation uncertainty and the stakeholder focus on what is an industry wide issue, we identified the
valuation of the cladding fire safety provision as a significant audit risk.
To address the significant risk over the valuation of the cladding fire safety provision, our audit procedures
included the following:
•
We understood the obligations of the Group in this area and discussed this with management and reviewed recent
Government guidance and media articles;
•
We recalculated and tested the integrity of management’s provision calculation, to assess the mathematical accuracy;
•
We tested that newly identified buildings in the year have been correctly included in management’s list of properties
that may require remedial works;
•
For buildings classified by management as not requiring remediation, we tested a sample to third-party surveyor
assessments and publicly available information, as well as obtaining FRAEW forms where available, to verify that no
provision was required;
•
We tested the valuation of a sample of remediation cost estimates included within the provision back to third party
evidence, to corroborate the inputs into the provision calculation. Examples of audit evidence included quantity
surveyor assessments, tenders received and actual costs incurred to support rates assumed for similar work;
•
We tested changes in management’s assessments per building following receipt of new information to supporting
evidence, such as, external tenders received, and understood the basis of the revised estimates that resulted in
changes to or additional provisions being recorded in the year;
•
We assessed management’s ability to forecast remedial costs accurately based on the best available information,
by comparing the provision recognised with the actual amounts incurred for tendered, contracted, or completed
works on fully remediated buildings, where available;
•
We assessed the adequacy of the contingency included in the provision independently of management’s method
of calculation, by considering the experience in the year with variations to scope and rates identified throughout
our testing;
•
We tested the project delivery element in management’s calculation of the provision (primarily comprising staff costs,
various overheads, and legal fees) by obtaining management’s most recent budget, assessed the appropriateness
of the projected timeline and agreed key inputs back to supporting evidence;
•
We compared the current and non-current split of the provision to management’s cash flow forecasts, being their
best estimate of when spend will take place; and
•
We reviewed the disclosures included in the financial statements, including those on estimation uncertainty and
exceptional items as required by IAS 1 ‘Presentation of financial statements’ and those required by IAS 37
‘Provisions, contingent liabilities and contingent assets’.
Based on the procedures performed, we did not identify any material misstatements within management’s
provision and concluded that it was a reasonable best estimate of the expected costs. We also found the
disclosures made in the financial statements to be appropriate.
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Strategic report
Financial statements
Directors’ report
Independent auditors’ report to the members of Taylor Wimpey plc continued
Key audit matter
How our audit addressed the key audit matter
Valuation of investments in Group undertakings (Company)
Refer to Note 4 ‘Investments in Group undertakings’ in the Company financial statements.
The carrying value of investments in Group undertakings in the Company financial statements at 31 December
2025 is £4,526.9 million (2024: £4,518.7 million). They are included in the Company balance sheet at cost less
any provision for impairment. An impairment assessment of the carrying value is required when there is an
impairment trigger.
Management has considered whether there is an impairment trigger, noting that the Group’s market capitalisation
and consolidated net assets are both less than the carrying value of investments in Group undertakings, both
being potential impairment triggers. Management’s assessment included consideration of their latest short to
medium term forecasts, the market and other developments within the Group including current trading and
indicators of fair value, such as analyst reports. Overall, having considered these and other factors, management
has concluded that there is no trigger requiring an impairment assessment.
This was the area where we applied the most audit effort in respect of the audit of the Company, and hence
why this area was identified as a key audit matter.
To address this key audit matter, our audit procedures included the following:
•
We understood and assessed the reasonableness of management’s basis for concluding that there is no trigger
requiring an impairment assessment. However, given the existence of potential impairment triggers, we also
performed additional procedures to assess whether the risk of an actual impairment exists;
•
We considered what would be a reasonable control premium that could be applied to the market capitalisation on
31 December 2025 by reference to those control premia achieved in the recent past for takeover transactions of
similar companies in the sector and the extent to which this bridges the gap between the market capitalisation and
the carrying value of investments in Group undertakings. The uplift to share price needed to bridge this gap was
found to be less than the control premia achieved on takeover transactions that have occurred in recent years
excluding that for a distressed sale;
•
We also reviewed analyst reports and understood their expectations of the share price. We used the floor of these
price expectations and the resulting implied market value of the Group and found that this exceeds the carrying
value of investments in Group undertakings; and
•
In addition, we assessed a value-in-use calculation based on the Group’s future cash flows and compared this to
the carrying value of investments in Group undertakings given all the Group’s trading businesses are conducted by
subsidiaries of the Company. Our work in this respect included:
− Ensuring that the cash flows used in this calculation were consistent with those used for the Group’s going
concern assessment and to support its viability statement;
− Agreeing the cash flows used to Board approved forecasts;
− Testing the mathematical accuracy and logic of management’s calculation;
− Assessing the reasonableness of key assumptions, such as, the discount rate, short term growth and margin
assumptions and the long-term growth rate; and
− Performing sensitivity analysis to assess the impact of changes in certain assumptions.
We have no exceptions to report in respect of the procedures performed over this key audit matter.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial statements as a whole, taking into account the structure of the Group and the
Company, the accounting processes and controls, and the industry in which they operate.
The Group’s 2025 consolidated financial statements are primarily an aggregation of the 22 UK Business
Units, which represented the regional UK housebuilding businesses, consolidated with the Group’s
Spanish operations, Taylor Wimpey de España S.A.U., Taylor Wimpey plc, the share of the Group’s
interest in joint ventures and consolidation adjustments.
The 22 UK Business Units operated under a common control environment, underpinned by the
Group’s Operating Framework. The Group engagement team’s testing focused on the effectiveness and
consistency of the design and implementation of the controls and processes, and based on this, we
determined that the aggregated Business Units could be treated as one homogeneous population for
our controls and substantive testing. In addition, we performed detailed audit work over Taylor Wimpey
plc, the consolidation journals, the cash balance within Taylor Wimpey de España S.A.U., and specific
financial statement line items within a number of the Group’s joint ventures.
Our work covered over 94% of Group revenue, over 70% of Group profit before tax and over 94% of
Group net assets.
We also performed a full scope audit of the Company financial statements, which was considered
a separate component for the purposes of our audit.
Taylor Wimpey plc
Annual Report and Accounts 2025
168
Independent auditors’ report to the members of Taylor Wimpey plc continued
The impact of climate risk on our audit
As part of our audit we made enquiries of management to understand the process adopted to assess
the extent of the potential impact of climate risk on the Group’s financial statements, and to support the
disclosures made in the Strategic report.
Management continues to focus on monitoring progress toward the net zero targets set out in the
Net Zero Transition Plan, which the Board approved and announced within the 2022 Annual Report.
This commitment aims for the Group to achieve net zero by 2045.
Management considers that the impact of climate change, including the Group’s net zero target, does
not give rise to a material financial statement impact in the current year, and we used our knowledge
of the Group and the industry to evaluate management’s assessment. We particularly considered the
potential impact on forecast build costs, and therefore margins, of climate related regulations, such as
the Future Homes Standard and Buildings Standards. Our procedures did not identify any material
impact in the context of our audit of the financial statements as a whole, or our key audit matters for
the year ended 31 December 2025.
We also considered the consistency of the disclosures in relation to climate change (including the
disclosures in the Task Force on Climate-related Financial Disclosures (TCFD) section) within the
Annual Report, with the financial statements, and our knowledge obtained from our audit.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative
thresholds for materiality. These, together with qualitative considerations, helped us to determine the
scope of our audit and the nature, timing and extent of our audit procedures on the individual financial
statement line items and disclosures and in evaluating the effect of misstatements, both individually and
in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole
as follows:
Financial statements – Group
Financial statements – Company
Overall
materiality
£19.5 million (2024: £30.0 million).
£17.6 million
(2024: £27.0 million).
How we
determined
it
Approximately 5% of the Group’s profit before tax
and exceptional items (2024: a 3 year average of the
Group’s profit before tax and exceptional items).
1% of net assets but capped at
90% of overall Group materiality.
Rationale
for
benchmark
applied
Profit before tax is a generally accepted auditing
benchmark. On the basis that exceptional items are
not reflective of the operating performance of the
Group, and are excluded from key alternative
performance measures, we have excluded them from
the benchmark amount on which our materiality was
calculated. The change in benchmark is driven by
the reduced profit of the Group for 2025 being more
reflective of the previous two years, hence a single year
benchmark is considered to be more representative of
the current performance of the Group.
We believe that net assets
is the primary measure used by
the shareholders in assessing
the performance of the
Company, which acts solely
as a holding company, and is
a generally accepted auditing
benchmark for entities where
profits or revenues are not
the key indicators of financial
performance.
For each component in the scope of our Group audit, we allocated a materiality that is less than our
overall Group materiality. The range of materiality allocated across components was between
£13.1 million and £17.6 million.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate
of uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use
performance materiality in determining the scope of our audit and the nature and extent of our testing of
account balances, classes of transactions and disclosures, for example in determining sample sizes.
Our performance materiality was 75% (2024: 75%) of overall materiality, amounting to £14.6 million
(2024: £22.5 million) for the Group financial statements and £13.2 million (2024: £20.3 million) for the
Company financial statements.
In determining the performance materiality, we considered a number of factors – the history
of misstatements, risk assessment and aggregation risk and the effectiveness of controls –
and concluded that an amount at the upper end of our normal range was appropriate.
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Financial statements
Directors’ report
Independent auditors’ report to the members of Taylor Wimpey plc continued
We agreed with the Audit Committee that we would report to them misstatements identified during our
audit above £975,000 (Group audit) (2024: £1.5 million) and £878,000 (Company audit) (2024: £1.4 million)
as well as misstatements below those amounts that, in our view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the Directors’ assessment of the Group’s and the Company’s ability to continue
to adopt the going concern basis of accounting included:
• We tested the accuracy and integrity of the underlying model used by management in developing their
going concern forecasts, and validated the approval of the forecasts by the Board. We agreed that the
model demonstrated sufficient liquidity and headroom during the going concern assessment period;
• We tested the key assumptions used in the model, including comparison to third party market information
where appropriate, reviewing management’s sources of liquidity, and checking that the assumptions used
in the “severe but plausible” scenario was sufficiently severe to model potential future economic
downturn, which management consider to represent this severe but plausible scenario;
• We considered the historical accuracy of management’s forecasting by comparing previously
budgeted results to actual performance;
• We reviewed the covenants applicable to the Group’s borrowings and facility, and checked that the
forecasts supported ongoing compliance with the covenants in the going concern assessment period; and
• We reviewed the disclosures relating to going concern in the financial statements, with these
considered to be consistent with the assessment prepared by management and the procedures
we performed.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the Group’s and the
Company’s ability to continue as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the Directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not
a guarantee as to the Group’s and the Company’s ability to continue as a going concern.
In relation to the Directors’ reporting on how they have applied the UK Corporate Governance Code,
we have nothing material to add or draw attention to in relation to the Directors’ statement in the
financial statements about whether the Directors considered it appropriate to adopt the going concern
basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described
in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial
statements and our auditors’ report thereon. The Directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, accordingly, we do
not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form
of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If we identify an apparent material inconsistency or material misstatement, we are required to perform
procedures to conclude whether there is a material misstatement of the financial statements or a
material misstatement of the other information. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report based on these responsibilities.
With respect to the Strategic report and Directors’ report, we also considered whether the disclosures
required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to
report certain opinions and matters as described below.
Strategic report and Directors’ report
In our opinion, based on the work undertaken in the course of the audit, the information given in the
Strategic report and Directors’ report for the year ended 31 December 2025 is consistent with the
financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the Group and Company and their environment obtained
in the course of the audit, we did not identify any material misstatements in the Strategic report and
Directors’ report.
Directors’ Remuneration
In our opinion, the part of the Remuneration Committee report to be audited has been properly
prepared in accordance with the Companies Act 2006.
Taylor Wimpey plc
Annual Report and Accounts 2025
170
Independent auditors’ report to the members of Taylor Wimpey plc continued
Corporate governance statement
The Listing Rules require us to review the Directors’ statements in relation to going concern, longer-term
viability and that part of the corporate governance statement relating to the Company’s compliance with
the provisions of the UK Corporate Governance Code specified for our review. Our additional
responsibilities with respect to the corporate governance statement as other information are described
in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements
of the corporate governance statement is materially consistent with the financial statements and our
knowledge obtained during the audit, and we have nothing material to add or draw attention to in relation to:
• The Directors’ confirmation that they have carried out a robust assessment of the emerging and
principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place
to identify emerging risks and an explanation of how these are being managed or mitigated;
• The Directors’ statement in the financial statements about whether they considered it appropriate to
adopt the going concern basis of accounting in preparing them, and their identification of any material
uncertainties to the Group’s and Company’s ability to continue to do so over a period of at least
twelve months from the date of approval of the financial statements;
• The Directors’ explanation as to their assessment of the Group’s and Company’s prospects, the
period this assessment covers and why the period is appropriate; and
• The Directors’ statement as to whether they have a reasonable expectation that the Company will be
able to continue in operation and meet its liabilities as they fall due over the period of its assessment,
including any related disclosures drawing attention to any necessary qualifications or assumptions.
Our review of the Directors’ statement regarding the longer-term viability of the Group and Company
was substantially less in scope than an audit and only consisted of making inquiries and considering the
Directors’ process supporting their statement; checking that the statement is in alignment with the
relevant provisions of the UK Corporate Governance Code; and considering whether the statement is
consistent with the financial statements and our knowledge and understanding of the Group and
Company and their environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the
following elements of the corporate governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
• The Directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced
and understandable, and provides the information necessary for the members to assess the Group’s
and Company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and
internal control systems; and
• The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the Directors’ statement relating
to the Company’s compliance with the Code does not properly disclose a departure from a relevant
provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the Directors for the financial statements
As explained more fully in the Statement of Directors’ responsibilities in respect of the financial
statements, the Directors are responsible for the preparation of the financial statements in accordance
with the applicable framework and for being satisfied that they give a true and fair view. The Directors
are also responsible for such internal control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud, is detailed below.
Based on our understanding of the Group and industry, we identified that the principal risks of
non-compliance with laws and regulations related to building regulations, including fire and building
safety legislation, health and safety legislation, environmental regulation and employment law, and we
171
Shareholder information
Strategic report
Financial statements
Directors’ report
considered the extent to which non-compliance might have a material effect on the financial statements.
We also considered those laws and regulations that have a direct impact on the financial statements
such as corporation tax and pension legislation, the Listing Rules, the Companies Act 2006 and other
company legislation. We evaluated management’s incentives and opportunities for fraudulent
manipulation of the financial statements (including the risk of override of controls), and determined that
the principal risks were related to artificial inflation of reported results via the posting of fraudulent
journals, primarily as part of the consolidation process at a Group level, and bias in the assumptions
underpinning significant provisions. Audit procedures performed by the engagement team included:
• discussions with the Group Management Team, Business Unit Management, Internal Audit and the
Audit Committee;
• review of board and committee meetings minutes, as well as internal audit reports, and consideration
of known or suspected instances of non-compliance with laws and regulation and fraud;
• evaluation and testing of the operating effectiveness of management’s controls designed to prevent
and detect irregularities, in particular certain of the Group’s controls around margin recognition and
site forecasting;
• challenging the assumptions and judgements made by management in determining their
significant accounting estimates, in particular in relation to margin recognition and site forecasting,
and certain provisions;
• identifying and testing journal entries, in particular any journal entries posted with unusual account
combinations, including unusual or unexpected journal postings to the Consolidated income
statement; and
• performance of unpredictable procedures to address the identified fraud risks for the Group.
There are inherent limitations in the audit procedures described above. We are less likely to become
aware of instances of non-compliance with laws and regulations that are not closely related to events and
transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement
due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances,
possibly using data auditing techniques. However, it typically involves selecting a limited number of items
for testing, rather than testing complete populations. We will often seek to target particular items for
testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable
us to draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on
the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a
body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose.
We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not obtained all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Company, or returns adequate for our
audit have not been received from branches not visited by us; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• the Company financial statements and the part of the Remuneration Committee report to be audited
are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
We were first appointed by the Company for the financial year ended 31 December 2021.
Our uninterrupted engagement covers 5 financial years.
Other matter
The Company is required by the Financial Conduct Authority Disclosure Guidance and Transparency
Rules to include these financial statements in an annual financial report prepared under the structured
digital format required by DTR 4.1.15R – 4.1.18R and filed on the National Storage Mechanism of the
Financial Conduct Authority. This auditors’ report provides no assurance over whether the structured
digital format annual financial report has been prepared in accordance with those requirements.
Sonia Copeland (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
4 March 2026
Independent auditors’ report to the members of Taylor Wimpey plc continued
Taylor Wimpey plc
Annual Report and Accounts 2025
172
173
Shareholder information
Strategic report
Financial statements
Directors’ report
Consolidated income statement
for the year to 31 December 2025
Note
Before
exceptional
items
2025
£m
Exceptional
items
2025
£m
Total
2025
£m
Before
exceptional
items
2024
£m
Exceptional
items
2024
£m
Total
2024
£m
Continuing operations
Revenue
4
Cost of sales
(3,186.2 )
(3,186.2 )
(2,752.5 )
(2,752.5 )
Gross profit
Net operating expenses
6
(239.9 )
(243.8 )
(483.7 )
(232.3 )
(82.5 )
(314.8 )
Profit on ordinary activities before financing
(243.8 )
(82.5 )
Finance income
8
Finance costs
8
(38.5 )
(3.9 )
(42.4 )
(27.4 )
(27.4 )
Share of results of joint ventures
13
(0.2 )
(15.7 )
(15.9 )
Profit before taxation
(247.7 )
(98.2 )
Taxation (charge)/credit
9
(111.6 )
(46.1 )
(120.9 )
(100.7 )
Profit for the year
(182.2 )
(78.0 )
Note
2025
2024
Basic earnings per share
10
Diluted earnings per share
10
Adjusted basic earnings per share
10
Adjusted diluted earnings per share
10
All of the profit for both years is attributable to the equity holders of the Parent Company.
Taylor Wimpey plc
Annual Report and Accounts 2025
174
Consolidated statement of comprehensive income
for the year to 31 December 2025
Note
2025
£m
2024
£m
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
25
(8.8 )
Movement in fair value of hedging instruments
25
(4.3 )
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on defined benefit pension schemes
21
Tax charge on items taken directly to other comprehensive income
14
(0.3 )
(0.4 )
Other comprehensive income/(expense) for the year
(3.9 )
Profit for the year
Total comprehensive income for the year
All of the comprehensive income for both years is attributable to the equity holders of the Parent Company.
175
Shareholder information
Strategic report
Financial statements
Directors’ report
Consolidated balance sheet
at 31 December 2025
Note
2025
£m
2024
£m
Non-current assets
Intangible assets
11
Property, plant and equipment
12
Right-of-use assets
19
Interests in joint ventures
13
Trade and other receivables
16
Other financial assets
21
Deferred tax assets
14
Current assets
Inventories
15
Trade and other receivables
16
Tax receivables
Cash and cash equivalents
16
Total assets
Current liabilities
Trade and other payables
18
(966.7 )
(1,083.9 )
Lease liabilities
19
(11.7 )
(10.4 )
Tax payables
(3.4 )
(1.6 )
Provisions
22
(211.1 )
(161.7 )
(1,192.9 )
(1,257.6 )
Net current assets
Non-current liabilities
Trade and other payables
18
(275.0 )
(350.7 )
Lease liabilities
19
(25.3 )
(28.0 )
Bank and other loans
17
(87.0 )
(82.6 )
Retirement benefit obligations
21
(18.1 )
(22.2 )
Provisions
22
(281.0 )
(145.0 )
(686.4 )
(628.5 )
Total liabilities
(1,879.3 )
(1,886.1 )
Net assets
Note
2025
£m
2024
£m
Equity
Share capital
23
Share premium
24
Own shares
26
(20.2 )
(27.6 )
Other reserves
25
Retained earnings
Total equity
by the Board of Directors and authorised for issue on 4 March 2026. They were signed on its behalf by:
J Daly
C Carney
Director
Taylor Wimpey plc
Annual Report and Accounts 2025
176
Consolidated statement of changes in equity
for the year to 31 December 2025
Note
Share
capital
£m
Share
premium
£m
Own
shares
£m
Other
reserves
£m
Retained
earnings
£m
Total
£m
Total equity at 1 January 2024
(29.7 )
Other comprehensive (expense)/income for the year
(4.9 )
(3.9 )
Profit for the year
Total comprehensive (expense)/income for the year
(4.9 )
Own shares acquired
26
(4.0 )
(4.0 )
Utilisation of own shares
26
Cash cost of satisfying share options
(5.4 )
(5.4 )
Share-based payment credit
29
Tax charge on items taken directly to statement of changes in equity
14
(0.4 )
(0.4 )
Dividends approved and paid
31
(339.4 )
(339.4 )
Total equity at 31 December 2024
(27.6 )
Other comprehensive income for the year
Profit for the year
Total comprehensive income for the year
Own shares acquired
26
(3.3 )
(3.3 )
Utilisation of own shares
26
Cash cost of satisfying share options
(9.0 )
(9.0 )
Share-based payment credit
29
Tax charge on items taken directly to statement of changes in equity
14
(0.3 )
(0.3 )
Dividends approved and paid
31
(330.4 )
(330.4 )
Total equity at 31 December 2025
(20.2 )
177
Shareholder information
Strategic report
Financial statements
Directors’ report
Consolidated cash flow statement
for the year to 31 December 2025
Note
2025
£m
2024
£m
Profit on ordinary activities before financing
Adjustments for:
Depreciation and amortisation
Pension contributions in excess of charge
to the income statement
(4.3 )
(4.0 )
Share-based payment charge
Loss on disposal of assets
Increase in provisions excluding
exceptional payments
Operating cash flows before movements
in working capital
Increase in inventories
(14.8 )
(86.8 )
(Increase)/decrease in receivables
(53.6 )
Decrease in payables
(108.4 )
(27.1 )
Cash generated from operations
Payments related to exceptional charges
(68.5 )
(34.1 )
Income taxes paid
(50.0 )
(102.5 )
Interest paid
(16.3 )
(10.2 )
Net cash generated from operating activities
Investing activities
Interest received
8
Proceeds on disposal of property, plant and equipment
Purchase of property, plant and equipment
12
(4.2 )
(3.4 )
Purchase of intangible assets
11
(2.5 )
Proceeds on disposal of joint venture
Amounts (invested in)/received from joint ventures
(15.8 )
Net cash (used in)/generated from investing activities
(10.5 )
Note
2025
£m
2024
£m
Financing activities
Lease capital repayments
19
(11.6 )
(9.6 )
Cash received on exercise of share options
Purchase of own shares
26
(3.3 )
(4.0 )
Repayment of borrowings
20
(175.0 )
Proceeds from borrowings
20
Dividends paid
31
(330.4 )
(339.4 )
Net cash used in financing activities
(343.6 )
(352.3 )
Net decrease in cash and cash equivalents
(220.9 )
(113.5 )
Cash and cash equivalents at beginning
of year
Effect of foreign exchange rate changes
(4.0 )
Cash and cash equivalents at end of year
27
178
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements
Material accounting policies
The consolidated financial statements have been prepared on a going concern basis and under the
historical cost convention, except as otherwise stated below.
The material accounting policies adopted, which have been applied consistently, except as otherwise
The Group has adopted and applied the following standards and amendments in the year, which
are relevant to its operations, none of which had a material impact on the consolidated financial
statements:
following new or revised standards and interpretations that have been issued but are not yet effective:
• IFRS 18 ‘Presentation and Disclosure in Financial Statements’
• Annual Improvements to IFRS Accounting Standards – Volume 11
• IFRS 7 ‘Financial Instruments: Disclosures’ and IFRS 9 ‘Financial Instruments’ (amendments) –
classification and measurement of financial instruments
The Directors do not expect that the adoption of the standards, amendments and interpretations
Group forecasts have been prepared that have considered the Group’s current financial position and
current market circumstances. The forecasts were subject to sensitivity analysis, including a severe
but plausible scenario together with the likely effectiveness of mitigating actions.
The assessment considered sensitivity analysis based on a number of realistically possible, but severe
and prolonged, changes to principal assumptions. In determining these, the Group included
macroeconomic and industry-wide projections, as well as matters specific to the Group.
The severe but plausible downside scenario reflects the aggregated impact of sensitivities, taking
account of a decline in customer confidence, disposable income and mortgage availability. To arrive at
the stress test, the Group has drawn on experience gained managing the business through previous
economic downturns. As a result, the Group has stress tested the business against the following severe
but plausible downside scenario which can be attributed back to the Group’s Principal Risks that have
been identified as having the most impact on the longer term prospects and viability of the Group.
The impact of the Principal Risk ‘Natural resources and climate change’ is not deemed to be material
within the forecast period, as costs associated with the regulatory changes have been included in
the modelling.
• Volume – a decline in total volumes of 10% in 2026 from 2025 levels, before recovering back to 2025
levels by 2028
• Price – a reduction to current selling prices of 10%, remaining at these levels across 2026 and 2027
before recovering to current levels by 2028
• One-off costs – a one-off exceptional charge and cash cost of £150 million for an unanticipated
event, change in government regulations or financial penalty has been included in 2026
Mitigations to this sensitivity analysis include a reduction in land investment, a reduction in the level of
production and work in progress held and optimising the overhead base to ensure it is aligned with the
scale of the operations through the cycle. If this scenario were to occur, the Directors also have a range
of additional options to maintain financial strength, including a more severe reduction in land spend and
work in progress, the sale of assets, reducing the distributions and/or raising debt.
At 31 December 2025, the Group had a cash balance of £430 million and had access to £600 million
from a fully undrawn revolving credit facility, together totalling £1,030 million. The combination of both of
these is sufficient to absorb the financial impact of each of the risks modelled in the stress and sensitivity
analysis, individually and in aggregate.
Based on these forecasts, it is considered that there are sufficient resources available for the Group to
conduct its business, and meet its liabilities as they fall due, for at least the next 12 months from the
date of these consolidated financial statements. Consequently, the consolidated financial statements
The consolidated financial statements have been prepared in accordance with UK-adopted international
Strategic report
Directors’ report
Financial statements
Shareholder information
179
Notes to the consolidated financial statements continued
1
Material accounting policies
continued
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries) made up to 31 December each year. Control is achieved
where the Company:
• Has power over the investee;
• Governs the financial and operating policies of the investee;
• Is exposed, or has rights, to variable return from its involvement with the investee; and
• Has the ability to use its power to affect its returns.
On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair
value at the date of acquisition. Any excess of the cost of acquisition over the fair value of the identifiable
net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair
value of the identifiable net assets acquired (i.e. discount on acquisition) is credited to the income
statement in the period of acquisition. The interest of non-controlling shareholders is stated at the
non-controlling interest’s proportion of the fair value of the assets and liabilities recognised.
Subsequently, all comprehensive income is attributed to the owners and the non-controlling interests.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated
income statement from the effective date of acquisition or up to the effective date of disposal,
as appropriate. Where a subsidiary is disposed of which constituted a major line of business, it is
disclosed as a discontinued operation. Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used into line with those used by the
Undertakings are deemed to be a joint venture when the Group has joint control of the rights and assets
of the undertaking via either voting rights or a formal agreement, which includes that unanimous consent
is required for strategic, financial and operating decisions. Joint ventures are consolidated under the
equity accounting method. Loans to joint ventures form part of the Group’s net investment, which is
assessed for recoverability on a periodic basis or when there is an indication of possible loss. On transfer
of land and/or work in progress to joint ventures, the Group recognises only its share of any profits or
losses. Joint operations arise where the Group has joint control of an operation but has rights to only its
own assets and obligations related to the operation. These assets and obligations, and the Group’s
share of revenues and costs, are included in the Group’s results.
Joint ventures and joint operations are entered into to develop specific sites. Each arrangement is site or
project specific and once the development or project is complete the arrangement is wound down.
On disposal of a joint venture, a gain or loss is recognised as the difference between proceeds received
The Group operates in the United Kingdom and Spain. The United Kingdom is split into five
geographical operating segments, each managed by a Divisional Chair who sits on the Group
Management Team. In addition, there are central operations covering the corporate functions and
Strategic Land.
The Group aggregates the UK operations into a single reporting segment on the basis that they share
similar economic characteristics. In addition, each Division builds and delivers residential homes,
uses consistent methods of construction, sells homes to both private customers and local housing
associations, follows a single UK sales process and operating framework, is subject to the same
macroeconomic factors including mortgage availability and has the same cost of capital arising
from the utilisation of central banking and debt facilities.
As a result, the Group has the following reporting segments:
• United Kingdom
Revenue is recognised when the performance obligation associated with the sale is completed.
The transaction price comprises the fair value of the consideration received or receivable, net of value
added tax, rebates and discounts and after eliminating sales within the Group. Revenue and profit
are recognised as follows:
a. Housing and land sales
Revenue is recognised in the income statement when control is transferred to the customer.
This is deemed to be when title of the property passes to the customer on legal completion
and the performance obligation associated with the sale is completed.
Revenue in respect of the sale of residential properties is recognised at the fair value of the consideration
180
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
1
Material accounting policies
continued
Revenue arising on contracts which give the customer control over properties as they are constructed,
and for which the Group has a right to payments for work performed, is recognised over time. Revenue
and costs are recognised over time with reference to the stage of completion of the contract activity at
the balance sheet date where the outcome of a long term contract can be estimated reliably. This is
normally measured by surveys of work performed to date. Variations in contract work, claims and
incentive payments are included to the extent that it is highly probable that they will result in revenue
and they are capable of being reliably measured. When land is transferred at the start of a long term
contract, revenue is not recognised until control has been transferred to the customer, which includes
legal title being passed to them.
Where the outcome of a long term contract cannot be estimated reliably, contract revenue where
recoverability is probable is recognised to the extent of contract costs incurred. The costs associated
with fulfilling a contract are recognised as expenses in the period in which they are incurred. When it is
probable that total contract costs will exceed total contract revenue, the expected loss is recognised
as an expense immediately.
c. Part exchange
In certain instances, property may be accepted in part consideration for a sale of a residential property.
The fair value is established by independent surveyors, reduced for costs to sell. Proceeds generated
from the subsequent sale of part exchange properties are recorded as other income and the cost as
other expenses. The original sale is recorded in the normal way, with the fair value of the exchanged
property replacing cash receipts.
d. Cash incentives
The transaction price may include cash incentives. These are considered to be a discount from the
The Group determines the value of inventory charged to cost of sales based on the total budgeted
current cost of developing the site. Once the total expected costs of development are established,
they are allocated to individual plots to achieve a consistent margin for the site. To the extent that
additional costs or savings are identified, including experienced inflation, as the site progresses,
these are recognised over the remaining plots in the current and future years, unless they are specific
Exceptional items are defined as items of income or expenditure which, in the opinion of the Directors,
are material or unusual in nature or of such significance that they require separate disclosure on the face
of the income statement in accordance with IAS 1 ‘Presentation of Financial Statements’. Should these
Interest income on bank deposits is recognised on an accruals basis. Also included in interest receivable
are interest and interest-related payments the Group receives on other receivables.
Borrowing costs are recognised on an effective interest rate basis and are payable on the Group’s
borrowings and lease liabilities. Also included are the amortisation of fees associated with the
arrangement of the financing. Capitalised finance costs are held in other receivables and amortised
over the period of the facility.
Finance charges, including premiums payable on settlement or redemption, and direct issue costs,
are accounted for on an accruals basis in the income statement using the effective interest method and
are added to the carrying amount of the instrument to the extent that they are not settled in the period in
The individual financial statements of each Group company are presented in the currency of the primary
economic environment in which it operates (its functional currency). Transactions in currencies other
than the functional currency are recorded at the rates of exchange prevailing on the dates of
the transactions. At each balance sheet date, monetary assets and liabilities that are denominated
in foreign currencies other than the functional currency are retranslated at the rates prevailing at the
Strategic report
Directors’ report
Financial statements
Shareholder information
181
Notes to the consolidated financial statements continued
1
Material accounting policies
continued
translated at the rates prevailing at the date when the fair value was determined. Gains and losses
arising on retranslation are included in the net profit or loss for the period.
On consolidation, the assets and liabilities of the Group’s overseas operation are translated at
exchange rates prevailing at the balance sheet date. Income and expense items are translated at
an appropriate average rate for the year. Exchange differences arising are recognised within other
comprehensive income and transferred to the Group’s translation reserve. Such translation differences
are recognised as income or expenses in the income statement in the period in which the operation
is disposed of.
The Group uses foreign currency borrowings to hedge its net investment exposure to certain
The Group as a lessee
The Group assesses at inception whether a contract is, or contains, a lease. A lease exists if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration. The Group assessment includes whether:
• The contract involves the use of an identified asset;
• The Group has the right to obtain substantially all of the economic benefits from the use of the
asset throughout the contract period; and
• The Group has the right to direct the use of the asset.
At the commencement of a lease, the Group recognises a right-of-use asset along with a corresponding
lease liability.
The lease liability is initially measured at the present value of the remaining lease payments, discounted
using the Group’s incremental borrowing rate. The lease term comprises the non-cancellable period
of the contract, together with periods covered by an option to extend the lease where the Group
is reasonably certain to exercise that option based on operational needs and contractual terms.
Subsequently, the lease liability is measured at amortised cost by increasing the carrying amount
to reflect interest on the lease liability and reducing it by the lease payments made. The lease liability
is remeasured when the Group changes its assessment of whether it will exercise an extension or
adjusted for any lease payments made at or before the commencement date, estimated asset
retirement obligations, lease incentives received and initial direct costs. Subsequently, right-of-use assets
are measured at cost, less any accumulated depreciation and any accumulated impairment losses,
and are adjusted for certain remeasurements of the lease liability. Depreciation is calculated
on a straight-line basis over the length of the lease.
The Group has elected to apply exemptions for short term leases and leases for which the underlying
asset is of low value. For these leases, payments are charged to the income statement on
a straight-line basis over the term of the relevant lease.
Right-of-use assets are presented within non-current assets on the face of the balance sheet,
and lease liabilities are shown separately on the balance sheet in current liabilities and non-current
Software
Costs that are directly associated with the acquisition or production of identifiable and unique software
controlled by the Group, and that generate economic benefits beyond one year, are recognised as
intangible assets. Software development costs recognised as assets are amortised on a straight-line
basis over three to five years from the time of implementation and are stated at cost less accumulated
Land and buildings held for use in the production or supply of goods or services, or for administrative
purposes, are stated in the balance sheet at cost less accumulated depreciation and any accumulated
impairment losses. Freehold land is not depreciated. Buildings are depreciated over 50 years.
Depreciation is charged to expense the cost or valuation of assets over their estimated useful lives.
Other assets are depreciated using the straight-line method, on the following bases:
• Plant and equipment: 20-33% per annum
The gain or loss arising on the disposal or retirement of an asset is determined as the difference
between the sale proceeds, less any selling expenses, and the carrying amount of the asset.
182
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Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
1
Material accounting policies
continued
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of
the impairment loss (if any). Where the asset does not generate cash flows that are independent from
other assets, the Group estimates the recoverable amount of the cash-generating unit to which the
asset belongs.
The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value, using a pre-tax discount
rate that reflects current market assessments and the risks specific to the asset.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying
amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount.
An impairment loss is recognised as an expense immediately in the income statement.
Where an impairment loss subsequently reverses, due to a change in circumstances or in the estimates
used to determine the asset’s recoverable amount, the carrying amount of the asset or cash-generating
unit is increased to the revised estimate of its recoverable amount, so long as it does not exceed the
original carrying value prior to the impairment being recognised. A reversal of an impairment loss is
Dividends are charged to retained earnings in the period of payment in respect of an interim dividend,
Financial assets are initially recognised at fair value and subsequently classified into one of the following
measurement categories:
• Measured at amortised cost
• Measured at fair value through profit or loss (FVTPL)
• Measured at fair value through other comprehensive income (FVOCI)
The classification of financial assets depends on the Group’s business model for managing the asset
and the contractual terms of the cash flows. Assets that are held for the collection of contractual cash
flows that represent solely payments of principal and interest are measured at amortised cost, with
any interest income recognised in the income statement using the effective interest rate method.
Financial assets that do not meet the criteria to be measured at amortised cost are classified by
the Group as measured at FVTPL. Fair value gains and losses on financial assets measured at
FVTPL are recognised in the income statement and presented within net operating expenses.
Shared equity loans were provided to certain customers to facilitate a house purchase. The contractual
cash flows on shared equity loans are linked to a national house price index. Under IFRS 9, financial
assets with embedded derivatives are considered in their entirety when determining whether their
cash flows are solely payment of principal and interest. Accordingly, shared equity loans are classified
as FVTPL, with fair value gains and losses arising on the remeasurement of the loan presented in the
Cash and cash equivalents comprise cash held by the Group and short term bank deposits with an
original maturity of three months or less from inception and are subject to insignificant risk of changes
Financial liabilities are initially recognised at fair value and subsequently classified into one of the
following measurement categories:
• Measured at amortised cost
• Measured at fair value through profit or loss (FVTPL)
Non-derivative financial liabilities are measured at FVTPL when they are considered held for trading
or designated as such on initial recognition. The Group has no non-derivative financial liabilities
Strategic report
Directors’ report
Financial statements
Shareholder information
183
Notes to the consolidated financial statements continued
1
Material accounting policies
continued
Borrowings are initially recognised at fair value, net of transaction costs incurred and subsequently
Trade and other payables are measured at amortised cost. When the acquisition of land has deferred
payment terms, a land creditor is recognised. Payables are discounted to present value when
Customer deposits, measured at amortised cost, are recorded as a liability on receipt and released
An equity instrument is any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. Equity instruments issued by the Parent Company are recorded as the
The Group uses foreign currency borrowings and derivatives to hedge its net investment exposure to
movements in exchange rates on translation of certain individual financial statements denominated in
foreign currencies other than Sterling, which is the functional currency of the Parent Company.
Derivative financial instruments are measured at fair value. Changes in the fair value of derivative financial
instruments that are designated and effective as hedges of net investments in foreign operations are
recognised directly in other comprehensive income and the ineffective portion, if any, is recognised
immediately in the income statement.
For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes
in fair value attributable to the risk being hedged with the corresponding entry in the consolidated
income statement. Gains or losses from remeasuring the derivative, or for non-derivatives the
foreign currency component of its carrying amount, are also recognised in the income statement.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting
are recognised in the income statement as they arise.
Hedge accounting is discontinued if the hedged item is sold or no longer qualifies for hedge accounting,
at which point any cumulative gain or loss on the hedging instrument accumulated in other
Provisions are recognised when the Group has a present legal or constructive obligation as a result of
a past event, and it is probable that the Group will be required to settle that obligation. Provisions are
measured at the Directors’ best estimate of the expenditure required to settle the obligation at the
Inventories are initially stated at cost and held at the lower of this initial amount and net realisable value.
Costs comprise direct materials and, where applicable, direct labour and those overheads that have
been incurred in bringing the inventories to their present location and condition. Net realisable value
represents the estimated selling price less all estimated costs of completion and costs to be incurred
in marketing, selling and distribution. Land is recognised in inventory when the significant risks and
rewards of ownership have been transferred to the Group.
Non-refundable land option payments are initially recognised in inventory. They are reviewed regularly
The tax charge represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before
tax as reported in the income statement because it excludes items of income or expense that are
taxable or deductible in other years, and it further excludes items that are never taxable or deductible.
The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively
184
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Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
1
Material accounting policies
continued
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary difference arises from goodwill or
from the initial recognition (other than in a business combination) of other assets and liabilities in
a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are also recognised for taxable temporary differences arising on investments
in subsidiaries and interests in joint ventures, except where the Group is able to control the reversal
of the temporary difference and it is probable that the temporary difference will not reverse in the
enacted or substantively enacted by the balance sheet date.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered. Deferred tax is charged or credited to the income statement, except when
it relates to items charged or credited directly to other comprehensive income or equity, in which case
The Group issues equity-settled share-based payments to certain employees. Equity-settled
share-based payments are measured at fair value at the date of grant. The fair value is expensed
on a straight-line basis over the vesting period, based on the Group’s estimate of shares that will
For defined benefit plans, a finance charge is determined on the net defined benefit pension liability.
The operating and financing costs of such plans are recognised separately in the income statement;
past service costs are recognised as an expense at the earlier of when the plan is amended or
curtailment occurs, at the same time as which the entity will recognise related restructuring costs
or termination benefits. Certain liability management costs and financing costs are recognised in
the periods in which they arise. Actuarial gains and losses are recognised immediately in the
consolidated statement of comprehensive income.
The retirement benefit obligation recognised in the consolidated statement of financial position
represents either the net deficit position of the scheme or, should the scheme be in an IAS 19
accounting surplus, the IFRIC 14 liability equal to the present value of future committed
cash contributions.
Strategic report
Directors’ report
Financial statements
Shareholder information
185
Notes to the consolidated financial statements continued
Critical accounting judgements and key sources of
estimation uncertainty
Preparation of the consolidated financial statements requires management to make significant
judgements and estimates. Management has considered whether there are any such sources of
estimation or accounting judgements in preparing the consolidated financial statements and highlights
the following areas. In identifying these areas, management has considered the size of the associated
balance and the potential likelihood of changes due to macroeconomic factors.
Critical accounting judgements
Management has not made any individual critical accounting judgements that are material to
the Group.
Key sources of estimation uncertainty
Key sources of estimation uncertainty are those which present a significant risk of potential material
adjustment to carrying amounts of assets or liabilities within the next financial year.
Cladding fire safety provision
The provision for cladding fire safety works is considered to be a key source of estimation uncertainty
given its size and the estimation inherent in developing the provision where assessments have yet to be
performed and works are not yet tendered. The Group estimates the provision based on the number
of buildings that may require works and the costs to carry out the identified works. In determining the
total cost of works, management has increasingly been supported by third party quotations received.
However, on buildings not yet tendered or assessed, estimates are made for the nature of works to be
carried out and the costs of those works based on the experience the Group has from projects currently
ongoing. The provision is therefore complex in nature and involves judgements and estimates, which
can be impacted by changes in the costs of materials and labour, unanticipated works being required,
evolving industry practices and changes to regulations. If there were a 10% change in costs for
untendered projects, arising from changes to scope or rates, the provision would increase/decrease
by £24 million. During the year the provision has been increased by £225.8 million, net of discounting,
(2024: £68.9 million), see Note 6. Based on the information currently available, the provision represents
management’s best estimate of the liability for the Group.
Employee benefits
The value of the defined benefit plan liabilities is determined by using various assumptions, including
discount rate, future rates of inflation, growth, yields, returns on investments and mortality rates.
As actual changes in these values may differ from those assumed, this is a key source of estimation
uncertainty within the consolidated financial statements. Changes in these assumptions over time and
differences to the actual outcome will be reflected in the consolidated statement of comprehensive
income. Note 21 details the main assumptions in accounting for the Group’s defined benefit pension
Cost allocation
In order to determine the profit that the Group is able to recognise on its developments in a specific
period, the Group has to allocate site-wide development costs between units built in the current year
and in future years. It also has to estimate costs to complete, including those driven by climate-related
regulation, and make estimates relating to future sales prices and margins on those developments
and units. In making these assessments, there is a degree of inherent uncertainty. The Group has
developed internal controls to assess and review carrying values and the appropriateness of
General information
registered office is Taylor Wimpey plc, Gate House, Turnpike Road, High Wycombe, Buckinghamshire,
Strategic Report on pages 3 to 89.
186
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Revenue
An analysis of the Group’s continuing revenue is as follows:
2025 |
2024 |
|
£m |
£m |
|
Private sales |
3,329.3 |
2,960.7 |
Partnership housing |
414.1 |
404.1 |
Land and other |
101.2 |
36.4 |
3,844.6 |
3,401.2 |
Other revenue includes income from the sale of commercial properties developed as part of larger
residential developments. The Group’s revenue includes revenue from construction contracts that
are recognised over time by reference to the stage of completion of the contract with the customer.
All other revenue is recognised at a point in time once control of the property is transferred to
the customer.
2025 |
2024 |
|
£m |
£m |
|
Recognised at a point in time |
3,322.4 |
2,935.2 |
Recognised over time |
522.2 |
466.0 |
3,844.6 |
3,401.2 |
At 31 December 2025, the aggregate amount of the transaction price allocated to unsatisfied
performance obligations on construction contracts was £974.8 million (2024: £819.7 million),
Operating segments
The Group operates in two countries, the United Kingdom and Spain, and has two reportable segments
of those countries. Revenue in Spain arises entirely on private sales.
The accounting policies of the reportable segments are the same as the Group’s accounting policies
described in Note 1.
Segment information about these businesses is presented below:
| 2025 |
2024 |
|||||
UK |
Spain |
Total |
UK |
Spain |
Total |
|
£m |
£m |
£m |
£m |
£m |
£m |
|
Revenue |
||||||
External sales |
3,652.0 |
192.6 |
3,844.6 |
3,214.6 |
186.6 |
3,401.2 |
Result |
||||||
Profit before joint ventures, |
||||||
finance (costs)/income and |
||||||
exceptional items |
366.8 |
51.7 |
418.5 |
369.0 |
47.4 |
416.4 |
Share of results of joint ventures |
||||||
before exceptional items |
2.1 |
– |
2.1 |
(0.2) |
– |
(0.2) |
Adjusted operating profit (Note 32) |
368.9 |
51.7 |
420.6 |
368.8 |
47.4 |
416.2 |
Exceptional items (Note 6) |
(243.8) |
– |
(243.8) |
(98.2) |
– |
(98.2) |
Profit before net finance |
||||||
(costs)/income |
125.1 |
51.7 |
176.8 |
270.6 |
47.4 |
318.0 |
Net finance (costs)/income |
(30.3) |
2.3 |
||||
Profit before taxation |
146.5 |
320.3 |
||||
Taxation charge |
(46.1) |
(100.7) |
||||
Profit for the year |
100.4 |
219.6 |
||||
Strategic report
Directors’ report
Financial statements
Shareholder information
187
Notes to the consolidated financial statements continued
5
Operating segments
continued
2025 | 2024 | |||||
UK | Spain | Total | UK | Spain | Total | |
£m | £m | £m | £m | £m | £m | |
Assets and liabilities | ||||||
Segment operating assets | 5,342.1 | 233.3 | 5,575.4 | 5,355.4 | 236.6 | 5,592.0 |
Joint ventures | 26.6 | – | 26.6 | 26.9 | – | 26.9 |
Segment operating liabilities | (1,644.9) | (144.0) | (1,788.9) | (1,654.8) | (147.1) | (1,801.9) |
Net operating assets | 3,723.8 | 89.3 | 3,813.1 | 3,727.5 | 89.5 | 3,817.0 |
Net current taxation | 5.5 | 2.8 | ||||
Net deferred taxation (Note 14) | 25.6 | 20.6 | ||||
Net cash (Note 27) | 342.6 | 564.8 | ||||
Net assets | 4,186.8 | 4,405.2 | ||||
| 2025 | 2024 | |||||
UK | Spain | Total | UK | Spain | Total | |
£m | £m | £m | £m | £m | £m | |
Other information | ||||||
Property, plant and | ||||||
equipment additions | 4.0 | 0.2 | 4.2 | 3.3 | 0.1 | 3.4 |
Right-of-use asset additions | 10.0 | 0.7 | 10.7 | 9.2 | 0.2 | 9.4 |
Intangible asset additions | 2.5 | – | 2.5 | – | – | – |
Property, plant and | ||||||
equipment depreciation | (2.8) | (0.2) | (3.0) | (2.4) | (0.1) | (2.5) |
Right-of-use asset depreciation | (11.0) | (0.4) | (11.4) | (10.4) | (0.3) | (10.7) |
Amortisation of | ||||||
intangible assets | (1.3) | – | (1.3) | (1.1) | – | (1.1) |
Net operating expenses and profit on ordinary activities
before financing
Profit on ordinary activities before financing for continuing operations has been arrived at after
charging/(crediting):
2025 | 2024 | |
£m | £m | |
Administration expenses | 247.4 | 242.0 |
Other expenses | 115.3 | 101.4 |
Other income | (122.8) | (111.1) |
Exceptional items | 243.8 | 82.5 |
Net operating expenses | 483.7 | 314.8 |
The majority of the other income and other expenses shown above relates to the income and
associated costs arising on the sale of part exchange properties. Also included in other income and
other expenses are profit/loss on the sale of property, plant and equipment, the revaluation of certain
shared equity mortgage receivables and abortive land acquisition costs.
2025 | 2024 | |
Exceptional items | £m | £m |
Provision in relation to cladding fire safety | 225.8 | 68.9 |
Loss on disposal of joint venture | – | 13.6 |
CMA information sharing investigation | 18.0 | – |
243.8 | 82.5 | |
Share of results of joint ventures | – | 15.7 |
Unwinding of discount on cladding fire safety provision | 3.9 | – |
Total exceptional items | 247.7 | 98.2 |
188
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Net operating expenses and profit on ordinary activities
6
before financing
continued
In 2025, as part of the Group’s ongoing work to meet the Government’s Remediation Action Plan
deadlines, the Group has continued to carry out intrusive investigations and updated FRAEW
assessments across its legacy buildings. These assessments and increased engagement with chartered
fire engineers in the first half of the year led to a reassessment of the Group’s risk exposure on building
remediation, including updated evaluation of buildings that had not yet undergone intrusive FRAEW
assessments. As a result, in the first half of the year, the provision for cladding fire safety remediation
increased by £222.2 million, which was recognised as an exceptional item. In the second half of the
year the Group has made good progress with assessments, tenders and works. Since June 2025 the
provision has increased by a further £3.6 million due to inflation, legal fees and other minor differences,
resulting in the provision increasing by £225.8 million (net of discounting) in the year, recognised as an
exceptional item. This overall increase in the provision in the year is as a result of:
• The scope of works has been expanded to remediate historical building defects. These building
defects, relating to cavity barriers behind brickwork and render, were not visible in earlier non-intrusive
assessments. The increased provision includes an allowance, which represents the Group’s best
estimate, to remediate cavity barrier defects in buildings where an FRAEW assessment has not yet
been received. As more FRAEW assessments are received this risk element reduces over time.
• The Group has experienced chartered fire engineers’ interpretation of the PAS9980 standard
evolve, becoming more cautious. Some buildings that were previously considered acceptable
requiring no remediation work under earlier EWS1 assessments have now been identified as
needing remediation through recent FRAEW assessments, thereby increasing the level of remediation
required and costs involved.
• Wider associated project costs have increased as a result of the above, including site-specific cost
increases, professional fees, contingencies and an uplift in Building Safety Fund related buildings,
partially offset by discounting.
In 2024, the Group recognised an increase in the provision of £88.0 million due to an escalation of costs
on tenders received in that year, a small number of new buildings being added and increased project
delivery administration costs, including the funding of Building Safety Fund pre-tender costs. In addition,
one of the Group’s joint ventures recognised a provision for remediation works on the buildings it built,
and as a result £19.1 million was released from the provision held by the Group in relation to those
buildings. This resulted in the net expense recognised by the Group in 2024 being £68.9 million.
CMA information sharing investigation
In February 2024 the CMA announced it was commencing an investigation into a number of
housebuilders, including the Group, relating to concerns that they may have exchanged competitively
sensitive information. In the year, and as announced on 9 July 2025, the Group has offered certain
commitments to the CMA in respect of those concerns, the costs for which, including associated legal
and professional fees, have been recognised as an exceptional item.
Loss on disposal of joint venture
During the prior year, the Group disposed of its interest in Winstanley and York Road Regeneration LLP
and recognised a £13.6 million loss arising from the difference between proceeds on disposal and the
Group’s net investment in the joint venture. This expense, being non-recurring, and outside of the normal
operations of the Group, was recognised as an exceptional item.
Share of results of joint ventures
As noted above, in the prior year, a joint venture of the Group recognised a provision for remediation
costs on buildings it built. The Group’s share of that cost, net of tax, was recognised as an exceptional
item in line with the recognition of the Group’s cladding fire safety provision.
Profit on ordinary activities before financing has been arrived at after charging:
2025 |
2024 |
|
£m |
£m |
|
Cost of inventories recognised as an expense in cost of sales |
3,030.4 |
2,635.0 |
Property, plant and equipment depreciation (Note 12) |
3.0 |
2.5 |
Right-of-use asset depreciation (Note 19) |
11.4 |
10.7 |
Amortisation of intangible assets (Note 11) |
1.3 |
1.1 |
2025 |
2024 |
|
£m |
£m |
|
Fees payable for the audit of the Company’s annual accounts |
||
and consolidated financial statements |
0.2 |
0.2 |
Fees payable to the Company’s Auditors and its associates for |
||
other services to the Group: |
||
The audit of the Company’s subsidiaries pursuant to legislation |
1.1 |
1.0 |
Total audit fees |
1.3 |
1.2 |
Other assurance services |
0.2 |
0.2 |
Total non-audit fees |
0.2 |
0.2 |
Total fees |
1.5 |
1.4 |
Strategic report
Directors’ report
Financial statements
Shareholder information
189
Notes to the consolidated financial statements continued
Net operating expenses and profit on ordinary activities
6
before financing
continued
PricewaterhouseCoopers LLP’s role as auditors, or work resulting from knowledge and experience
gained as part of the role. In 2025 and 2024, the fees relating to other assurance services primarily
related to the review of the interim statements and also included, in 2025, £100,000 for non-audit
assurance work relating to certain ESG metrics (2024: £65,000) and in both years £2,000 for a
subscription service providing factual updates and changes to applicable law, regulation or accounting
and auditing standards. In 2025, £2,000 (2024: £1,000) was also incurred for agreed upon procedures
Staff costs
2025 | 2024 | |
Number | Number | |
Monthly average number employed | ||
United Kingdom | 4,393 | 4,354 |
Spain | 103 | 104 |
4,496 | 4,458 |
2025 | 2024 | |
£m | £m | |
Remuneration | ||
Wages and salaries | 283.2 | 275.2 |
Redundancy costs | 0.6 | 0.9 |
Social security costs | 35.2 | 29.6 |
Other pension costs (Note 21) | 16.4 | 15.0 |
335.4 | 320.7 |
The information relating to Director and senior management remuneration required by the Companies
Act 2006 and the Listing Rules of the Financial Conduct Authority is contained in Note 30 and
Finance income and finance costs
2025 | 2024 | |
Finance income | £m | £m |
Interest receivable | 12.1 | 29.7 |
12.1 | 29.7 |
2025 | 2024 | |
Finance costs | £m | £m |
Interest on bank and other loans | (8.9) | (8.0) |
Foreign exchange loss | (0.8) | (0.1) |
(9.7) | (8.1) | |
Unwinding of discount on land creditors and other items | (26.1) | (16.7) |
Unwinding of discount on provisions (Note 22) | (3.9) | – |
Interest on lease liabilities (Note 19) | (1.6) | (1.5) |
Net interest on pension liability (Note 21) | (1.1) | (1.1) |
(42.4) | (27.4) |
190
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Taxation charge
Tax (charged)/credited in the consolidated income statement is analysed as follows:
2025 |
2024 |
||
£m |
£m |
||
Current tax |
|||
UK: |
Current year |
(39.1) |
(91.9) |
Adjustment in respect of prior years |
2.9 |
4.1 |
|
Overseas: |
Current year |
(15.3) |
(11.2) |
Adjustment in respect of prior years |
– |
– |
|
(51.5) |
(99.0) |
||
Deferred tax |
|||
UK: |
Current year |
5.2 |
(3.8) |
Adjustment in respect of prior years |
(0.8) |
2.7 |
|
Overseas: |
Current year |
1.0 |
(0.6) |
Adjustment in respect of prior years |
– |
– |
|
5.4 |
(1.7) |
||
(46.1) |
(100.7) |
Corporation tax is calculated at 29.0% (2024: 29.0%) of the estimated assessable profit for the year
in the UK. This includes corporation tax at the rate of 25.0% (2024: 25.0%) and residential property
developer tax at the rate of 4.0% (2024: 4.0%) on profits arising from residential property development
activities. Taxation outside the UK is calculated at the rates prevailing in the respective jurisdictions.
The tax charge for the year includes an exceptional credit of £65.5 million relating to the cladding fire
safety provision and other exceptional items (2024: £20.2 million).
The charge for the year can be reconciled to the profit per the consolidated income statement
as follows:
2025 |
2024 |
|
£m |
£m |
|
Profit before tax |
146.5 |
320.3 |
Tax at the UK corporation tax rate of 29.0% (2024: 29.0%) |
(42.5) |
(92.9) |
Net over provision in respect of prior years |
2.1 |
6.8 |
Net impact of items that are not taxable or deductible |
(7.8) |
(13.7) |
Derecognition of deferred tax assets |
– |
(2.8) |
Other rate impacting adjustments |
2.1 |
1.9 |
Tax charge for the year |
(46.1) |
(100.7) |
Owing to its size and multinational operations, the Group is within the scope of the OECD Pillar
Two model rules, which are designed to ensure that large multinational groups incur a 15% minimum
effective tax rate in each jurisdiction in which they operate. Pillar Two legislation was enacted in the
UK in June 2023 and applies to periods beginning on or after 31 December 2023. The Group applies
the exception to recognising and disclosing information about deferred tax assets and liabilities related
to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
Under the legislation, the Group is liable to pay a top-up tax for the difference between its effective
tax rate per jurisdiction and the 15% minimum rate. It is expected that the Group will meet the safe
Strategic report
Directors’ report
Financial statements
Shareholder information
191
Notes to the consolidated financial statements continued
Earnings per share
2025 |
2024 |
|
Basic earnings per share |
2.8p |
6.2p |
Diluted earnings per share |
2.8p |
6.2p |
Adjusted basic earnings per share |
8.0p |
8.4p |
Adjusted diluted earnings per share |
8.0p |
8.4p |
Weighted average number of shares for basic earnings per share – million |
3,539.4 |
3,538.5 |
Weighted average number of shares for diluted earnings per share – million |
3,548.6 |
3,551.9 |
Adjusted basic and adjusted diluted earnings per share, which exclude the impact of exceptional
items and any associated net tax amounts, are presented to provide a measure of the underlying
performance of the Group. A reconciliation of earnings attributable to equity shareholders used for
basic and diluted earnings per share to that used for adjusted earnings per share is shown below.
2025 |
2024 |
|
£m |
£m |
|
Earnings for basic and diluted earnings per share |
100.4 |
219.6 |
Adjust for exceptional items (Note 6) |
247.7 |
98.2 |
Adjust for tax on exceptional items (Note 9) |
(65.5) |
(20.2) |
Earnings for adjusted basic and adjusted diluted earnings per share |
282.6 |
297.6 |
2025 |
2024 |
|
Million |
Million |
|
Weighted average number of shares for basic earnings per share |
3,539.4 |
3,538.5 |
Dilution from share options |
9.2 |
13.4 |
Weighted average number of shares for diluted earnings per share |
3,548.6 |
3,551.9 |
Intangible assets
Software and |
|||
Brands |
licences |
Total |
|
£m |
£m |
£m |
|
Cost |
|||
At 1 January 2024 |
140.2 |
23.8 |
164.0 |
Additions |
– |
– |
– |
At 31 December 2024 |
140.2 |
23.8 |
164.0 |
Additions |
– |
2.5 |
2.5 |
Disposals |
– |
(4.3) |
(4.3) |
At 31 December 2025 |
140.2 |
22.0 |
162.2 |
Accumulated amortisation |
|||
At 1 January 2024 |
(140.2) |
(21.2) |
(161.4) |
Charge for the year |
– |
(1.1) |
(1.1) |
At 31 December 2024 |
(140.2) |
(22.3) |
(162.5) |
Charge for the year |
– |
(1.3) |
(1.3) |
Disposals |
– |
4.3 |
4.3 |
At 31 December 2025 |
(140.2) |
(19.3) |
(159.5) |
Carrying amount |
|||
At 31 December 2025 |
– |
2.7 |
2.7 |
At 31 December 2024 |
– |
1.5 |
1.5 |
192
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Property, plant and equipment
Freehold |
Plant, equipment |
||
land and |
and leasehold |
||
buildings |
improvements |
Total |
|
£m |
£m |
£m |
|
Cost |
|||
At 1 January 2024 |
14.3 |
37.0 |
51.3 |
Additions |
– |
3.4 |
3.4 |
Disposals |
(0.1) |
(1.3) |
(1.4) |
Exchange movements |
– |
(0.1) |
(0.1) |
At 31 December 2024 |
14.2 |
39.0 |
53.2 |
Additions |
– |
4.2 |
4.2 |
Disposals |
– |
(8.8) |
(8.8) |
Exchange movements |
– |
0.1 |
0.1 |
At 31 December 2025 |
14.2 |
34.5 |
48.7 |
Accumulated depreciation |
|||
At 1 January 2024 |
(4.7) |
(24.6) |
(29.3) |
Charge for the year |
(0.5) |
(2.0) |
(2.5) |
Disposals |
– |
0.4 |
0.4 |
Exchange movements |
– |
0.1 |
0.1 |
At 31 December 2024 |
(5.2) |
(26.1) |
(31.3) |
Charge for the year |
(0.4) |
(2.6) |
(3.0) |
Disposals |
– |
8.8 |
8.8 |
Exchange movements |
– |
(0.1) |
(0.1) |
At 31 December 2025 |
(5.6) |
(20.0) |
(25.6) |
Carrying amount |
|||
At 31 December 2025 |
8.6 |
14.5 |
23.1 |
At 31 December 2024 |
9.0 |
12.9 |
21.9 |
Interests in joint ventures
2025 |
2024 |
|
£m |
£m |
|
Share of net assets |
24.9 |
22.8 |
Loans to joint ventures |
1.7 |
4.1 |
Total interests in joint ventures |
26.6 |
26.9 |
The Group has three (2024: three) material joint ventures whose principal activity is residential
housebuilding or development. The Group considers a joint venture to be material when it is financially
or strategically important to the Group.
The particulars of the material joint ventures for 2025 are as follows:
Interest in the |
||
Country of |
issued ordinary |
|
Joint venture |
incorporation |
share capital* |
Greenwich Millennium Village Limited |
United Kingdom |
50% |
Whitehill & Bordon Development Company Phase 1a Limited |
United Kingdom |
50% |
Whitehill & Bordon Regeneration Company Limited |
United Kingdom |
50% |
*
Interests held by subsidiary undertakings.
The loss recognised by Greenwich Millennium Village Limited in the prior year reflects its recognition of
an exceptional provision for remedial works on buildings it built (see Note 6). Further information on the
particulars of joint ventures can be found on pages 224 to 225.
Strategic report
Directors’ report
Financial statements
Shareholder information
193
Notes to the consolidated financial statements continued
13
Interests in joint ventures
continued
The following two tables show summary financial information for the material joint ventures and in total for the immaterial joint ventures. Unless specifically indicated, this information represents 100% of the
joint venture before intercompany eliminations.
Whitehill | |||||
& Bordon | Whitehill | ||||
Greenwich | Development | & Bordon | |||
Millennium | Company | Regeneration | Immaterial | ||
Village | Phase 1a | Company | joint ventures | Total | |
2025 | 2025 | 2025 | 2025 | 2025 | |
£m | £m | £m | £m | £m | |
Non-current assets | – | – | 55.0 | 2.3 | 57.3 |
Current assets excluding cash | 88.1 | 21.9 | 11.4 | 37.1 | 158.5 |
Cash and cash equivalents | 2.4 | 1.7 | 11.7 | 5.2 | 21.0 |
Current financial liabilities | (13.2) | (6.9) | (29.0) | (2.1) | (51.2) |
Current other liabilities | – | (1.0) | – | – | (1.0) |
Non-current financial liabilities* | (35.3) | (7.4) | (46.1) | (45.4) | (134.2) |
Net assets/(liabilities) (100%) | 42.0 | 8.3 | 3.0 | (2.9) | 50.4 |
Group share of net assets/(liabilities) | 21.0 | 4.2 | 1.5 | (1.8) | 24.9 |
Loans to joint ventures | – | – | 0.1 | 1.6 | 1.7 |
Total interests in joint ventures | 21.0 | 4.2 | 1.6 | (0.2) | 26.6 |
Revenue | 12.3 | 49.3 | 18.1 | 7.3 | 87.0 |
Interest income/(expense) | 0.1 | (1.3) | 0.2 | (2.8) | (3.8) |
Income tax (expense)/credit | (0.3) | (1.7) | – | 0.6 | (1.4) |
Profit/(loss) for the year | 0.9 | 5.0 | – | (1.9) | 4.0 |
Group share of profit/(loss) for the year | 0.5 | 2.5 | – | (0.9) | 2.1 |
*
Non-current financial liabilities include amounts owed to joint venture partners.
194
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
13
Interests in joint ventures
continued
Whitehill |
|||||
& Bordon |
Whitehill |
||||
Greenwich |
Development |
& Bordon |
|||
Millennium |
Company |
Regeneration |
Immaterial |
||
Village |
Phase 1a |
Company |
joint ventures |
Total |
|
2024 |
2024 |
2024 |
2024 |
2024 |
|
£m |
£m |
£m |
£m |
£m |
|
Non-current assets |
3.2 |
– |
62.5 |
1.7 |
67.4 |
Current assets excluding cash |
78.4 |
28.2 |
5.8 |
31.6 |
144.0 |
Cash and cash equivalents |
8.5 |
0.4 |
0.1 |
3.4 |
12.4 |
Current financial liabilities |
(47.8) |
(12.7) |
(21.1) |
(1.4) |
(83.0) |
Current other liabilities |
– |
– |
– |
– |
– |
Non-current financial liabilities* |
(1.4) |
(12.9) |
(44.1) |
(36.3) |
(94.7) |
Net assets/(liabilities) (100%) |
40.9 |
3.0 |
3.2 |
(1.0) |
46.1 |
Group share of net assets/(liabilities) |
20.5 |
1.5 |
1.6 |
(0.8) |
22.8 |
Loans to joint ventures |
– |
– |
2.5 |
1.6 |
4.1 |
Total interests in joint ventures |
20.5 |
1.5 |
4.1 |
0.8 |
26.9 |
Revenue |
78.0 |
16.4 |
21.7 |
4.7 |
120.8 |
Interest (expense)/income |
(0.1) |
(1.4) |
0.4 |
(7.9) |
(9.0) |
Income tax credit/(expense) |
7.4 |
(0.1) |
0.1 |
0.9 |
8.3 |
(Loss)/profit for the year |
(22.1) |
0.4 |
(0.1) |
(9.8) |
(31.6) |
Group share of (loss)/profit for the year |
(11.1) |
0.2 |
(0.1) |
(4.9) |
(15.9) |
*
Non-current financial liabilities include amounts owed to joint venture partners.
Strategic report
Directors’ report
Financial statements
Shareholder information
195
Notes to the consolidated financial statements continued
Deferred tax
Temporary |
Losses and other |
|||||
Share-based |
Capital |
differences on |
Retirement benefit |
temporary |
||
payments |
allowances |
overseas provisions |
obligations |
differences |
Total |
|
£m |
£m |
£m |
£m |
£m |
£m |
|
At 1 January 2024 |
1.9 |
2.0 |
5.3 |
7.7 |
6.5 |
23.4 |
(Charge)/credit to income |
(0.2) |
(2.3) |
(0.6) |
(0.9) |
2.3 |
(1.7) |
Charge to other comprehensive income |
– |
– |
– |
(0.4) |
– |
(0.4) |
Charge to statement of changes in equity |
(0.4) |
– |
– |
– |
– |
(0.4) |
Foreign exchange |
– |
– |
(0.3) |
– |
– |
(0.3) |
At 31 December 2024 |
1.3 |
(0.3) |
4.4 |
6.4 |
8.8 |
20.6 |
(Charge)/credit to income |
(0.4) |
(0.8) |
1.0 |
(0.9) |
6.5 |
5.4 |
Charge to other comprehensive income |
– |
– |
– |
(0.3) |
– |
(0.3) |
Charge to statement of changes in equity |
(0.3) |
– |
– |
– |
– |
(0.3) |
Foreign exchange |
– |
– |
0.2 |
– |
– |
0.2 |
At 31 December 2025 |
0.6 |
(1.1) |
5.6 |
5.2 |
15.3 |
25.6 |
Closing deferred tax on temporary differences has been calculated at the tax rates that are expected to apply for the period when the asset is realised or liability is settled. Accordingly, deferred tax on
UK temporary differences has been calculated at 29% (31 December 2024: 29%). Deferred tax on Spanish temporary differences has been calculated at 25% (31 December 2024: 25%).
The net deferred tax balance is analysed into assets and liabilities as follows:
2025 |
2024 |
|
£m |
£m |
|
Deferred tax assets |
26.2 |
21.6 |
Deferred tax liabilities |
(0.6) |
(1.0) |
25.6 |
20.6 |
The Group has not recognised temporary differences relating to tax losses carried forward and other temporary differences amounting to £14.1 million (2024: £15.9 million) in the UK and £19.4 million
(£18.4 million) in Spain. The UK and Spanish temporary differences have not been recognised as insufficient certainty exists as to their future utilisation.
At the balance sheet date, the Group has unused UK capital losses of £269.7 million (2024: £269.7 million). No deferred tax asset has been recognised in respect of the capital losses at 31 December 2025
196
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Inventories
2025 |
2024 |
|
£m |
£m |
|
Land |
3,200.4 |
3,387.5 |
Development and construction costs |
2,019.7 |
1,949.3 |
Part exchange and other |
51.3 |
39.8 |
5,271.4 |
5,376.6 |
The markets in our core geographies, which are the primary drivers of our business, continue to
trade positively. At 31 December 2025, the Group completed a net realisable value assessment of
inventory, considering each site individually and based on estimates of sales price, costs to complete
and costs to sell. At 31 December 2025, the provision held in the United Kingdom was £12.6 million
(2024: £25.1 million) and £27.6 million in Spain (2024: £28.0 million). The table below details the
movements on the inventory provision recorded in the year.
| 2025 |
2024 |
|
| £m |
£m |
|
1 January |
53.1 |
58.9 |
Net utilised |
(14.3) |
(4.2) |
Foreign exchange |
1.4 |
(1.6) |
31 December |
40.2 |
53.1 |
Other financial assets
Current |
Non-current |
|||
2025 |
2024 |
2025 |
2024 |
|
£m |
£m |
£m |
£m |
|
Trade receivables |
117.0 |
79.7 |
18.3 |
10.1 |
Other receivables |
88.6 |
50.7 |
8.4 |
4.8 |
205.6 |
130.4 |
26.7 |
14.9 |
|
Included within trade receivables are mortgage receivables of £4.7 million (2024: £5.2 million),
including shared equity loans which are measured at fair value through profit or loss. Included within
trade receivables is £63.8 million (2024: £19.0 million) of contract assets arising on construction
2025 |
2024 |
|
£m |
£m |
|
Cash and cash equivalents |
429.6 |
647.4 |
£10.9 million (2024: £16.0 million) of cash and cash equivalents held in Spain from customer
deposits can only be used for development expenditure on the sites to which the deposits relate.
Bank and other loans
2025 |
2024 |
|
£m |
£m |
|
€100.0 million 5.08% Senior Loan Notes 2030 |
87.0 |
82.6 |
87.0 |
82.6 |
2025 |
2024 |
|
£m |
£m |
|
Amount due for settlement after one year |
87.0 |
82.6 |
87.0 |
82.6 |
Strategic report
Directors’ report
Financial statements
Shareholder information
197
Notes to the consolidated financial statements continued
Trade and other payables
Current |
Non-current |
|||
2025 |
2024 |
2025 |
2024 |
|
£m |
£m |
£m |
£m |
|
Trade payables |
331.7 |
322.7 |
22.5 |
23.1 |
Land creditors |
296.4 |
355.9 |
226.1 |
272.0 |
Social security and other taxes |
9.0 |
7.9 |
– |
– |
Customer deposits |
56.8 |
90.7 |
9.6 |
6.8 |
Accruals |
227.9 |
246.8 |
5.3 |
4.8 |
Deferred income |
20.7 |
16.4 |
5.0 |
36.6 |
Other payables |
24.2 |
43.5 |
6.5 |
7.4 |
966.7 |
1,083.9 |
275.0 |
350.7 |
|
Revenue recognised in the current year that was included in the customer deposit balance brought
forward at the beginning of the year was £90.7 million (2024: £80.3 million). Other payables include
£7.5 million (2024: £8.1 million) of repayable grants and £14.8 million (2024: £33.0 million) of short term
cash transfer from a joint venture (see Note 30).
Land creditors are denominated as follows:
2025 |
2024 |
|
£m |
£m |
|
Sterling |
478.8 |
587.0 |
Euros |
43.7 |
40.9 |
522.5 |
627.9 |
Land creditors of £503.8 million (2024: £608.9 million) are secured against land acquired for development.
Leases
The Group as a lessee
The Group’s leases consist primarily of premises and equipment.
Premises |
Equipment |
Total |
|
Right-of-use assets |
£m |
£m |
£m |
At 1 January 2025 |
22.0 |
13.9 |
35.9 |
At 31 December 2025 |
18.8 |
15.8 |
34.6 |
Additions during the year |
1.5 |
9.2 |
10.7 |
2025 |
2024 |
|
Lease liabilities |
£m |
£m |
At 1 January |
38.4 |
39.8 |
Additions |
10.7 |
9.4 |
Disposals |
(0.7) |
(1.2) |
Interest charge |
1.6 |
1.5 |
Payments |
(13.1) |
(11.1) |
Foreign exchange |
0.1 |
– |
At 31 December |
37.0 |
38.4 |
Current |
11.7 |
10.4 |
Non-current |
25.3 |
28.0 |
Total |
37.0 |
38.4 |
2025 | 2024 | |
Amounts recognised in the income statement | £m | £m |
Depreciation charged on right-of-use premises | 4.7 | 4.7 |
Depreciation charged on right-of-use equipment | 6.7 | 6.0 |
Interest on lease liabilities | 1.6 | 1.5 |
Total | 13.0 | 12.2 |
198
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Financial instruments and fair value disclosures
The Group’s policy is to maintain a strong balance sheet and to have an appropriate funding structure.
Shareholders’ equity and term debt are used to finance non-current assets and the medium to
long term inventories. Revolving credit facilities are used to finance net current assets, including
development and construction costs. The Group’s financing facilities contain the usual financial
covenants, including minimum interest cover and maximum gearing. The Group met these requirements
throughout the year and up to the date of the approval of the consolidated financial statements.
The Ordinary Dividend Policy is to return c.7.5% of net assets to shareholders annually, which will
Categories of financial assets and financial liabilities are as follows:
Carrying value |
Fair value |
||||
31 December |
31 December |
31 December |
31 December |
||
Fair value |
2025 |
2024 |
2025 |
2024 |
|
Financial assets |
hierarchy |
£m |
£m |
£m |
£m |
Cash and cash equivalents |
a |
429.6 |
647.4 |
429.6 |
647.4 |
Land receivables |
a |
41.3 |
1.8 |
41.3 |
1.8 |
Other financial assets |
a |
11.3 |
10.8 |
11.3 |
10.8 |
Trade and other receivables |
a |
82.1 |
98.3 |
82.1 |
98.3 |
Mortgage receivables |
b |
4.7 |
5.2 |
4.7 |
5.2 |
569.0 |
763.5 |
569.0 |
763.5 |
||
a. The Directors consider the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the
consolidated financial statements to approximate their fair value.
b. Mortgage receivables relate to sales incentives, including shared equity loans, and are measured at fair value through
profit or loss. The fair value is established based on a publicly available national house price index, being significant other
observable inputs (level 2).
Land receivables and trade and other receivables are included in the balance sheet as trade and other
receivables for current and non-current amounts. Current and non-current trade and other receivables,
as disclosed in Note 16, include £104.2 million (2024: £40.0 million) of non-financial assets.
Carrying value |
Fair value |
||||
31 December |
31 December |
31 December |
31 December |
||
Fair value |
2025 |
2024 |
2025 |
2024 |
|
Financial liabilities |
hierarchy |
£m |
£m |
£m |
£m |
Bank and other loans |
a |
87.0 |
82.6 |
90.3 |
84.8 |
Land creditors |
b |
522.5 |
627.9 |
522.5 |
627.9 |
Trade and other payables |
b |
615.7 |
648.2 |
615.7 |
648.2 |
Lease liabilities |
b |
37.0 |
38.4 |
37.0 |
38.4 |
1,262.2 |
1,397.1 |
1,265.5 |
1,399.3 |
||
a. The fair value of the €100 million fixed rate loan notes has been determined by reference to external interest rates and the
Directors’ assessment of the margin for credit risk (level 2).
b. The Directors consider the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the
consolidated financial statements to approximate their fair value.
Land creditors and trade and other payables are included in the balance sheet as trade and other
payables for current and non-current amounts. Current and non-current trade and other payables,
as disclosed in Note 18, include £103.5 million (2024: £158.5 million) of non-financial liabilities.
The Group has designated the carrying value of €100.0 million of foreign currency borrowings
(2024: €100.0 million) as a net investment hedge, equating to £87.0 million (2024: £82.6 million).
The Group has no financial instruments with fair values that are determined by reference to significant
unobservable inputs (level 3), nor have there been any transfers of assets or liabilities between levels
of the fair value hierarchy. There are no non-recurring fair value measurements.
At the end of 2025, contracts were in place to offset the foreign exchange movements on intra-Group
loans to buy/(sell) against Sterling: €15.0 million, equivalent to £13.0 million (2024: nil). The fair value of
the forward contracts is not material as they were entered into on or near 31 December 2025 and
Strategic report
Directors’ report
Financial statements
Shareholder information
199
Notes to the consolidated financial statements continued
20
Financial instruments and fair value disclosures
continued
The Group’s activities expose it to the financial risks of changes in both foreign currency exchange rates
and interest rates. The Group aims to manage the exposure to these risks using fixed or
variable rate borrowings, foreign currency borrowings and derivative financial instruments.
(a) Interest rate risk management
The Group can be exposed to interest rate risk as the Group borrows funds, when required, at variable
interest rates. The exposure to variable rate borrowings can fluctuate during the year due to the
seasonal nature of cash flows relating to housing sales and the less certain timing of land payments.
Group policy is to manage the volatility risk of interest rates on borrowings by a combination of fixed
rate borrowings and interest rate swaps such that the sensitivity to potential changes in variable rates
is within acceptable levels. Group policy does not allow the use of derivatives to speculate against
changes to future interest rates and they are only used to manage exposure to volatility. Interest rate
hedging using derivatives has not taken place in the current or previous year. This policy has not
changed during the year.
To measure the risk, variable rate borrowings and the expected interest cost for the year are forecast
monthly and compared to budget using management’s expectations of a possible change in interest
rates. Interest expense volatility remained within acceptable limits throughout the year.
Interest rate sensitivity
The effect on both income and equity, based on exposure to non-derivative floating rate instruments
and cash and cash equivalents at the balance sheet date, is shown in the table below. The Group
does not currently have any outstanding interest rate derivatives. The 0.50% (2024: 0.50%) change
represents a reasonably possible change in interest rates over the next financial year. The table assumes
all other variables remain constant in accordance with IFRS 7.
Income |
Equity |
Income |
Equity |
|
sensitivity |
sensitivity |
sensitivity |
sensitivity |
|
2025 |
2025 |
2024 |
2024 |
|
£m |
£m |
£m |
£m |
|
0.50% (2024: 0.50%) increase in interest rates |
2.1 |
2.1 |
3.2 |
3.2 |
0.50% (2024: 0.50%) decrease in interest rates |
(2.1) |
(2.1) |
(3.2) |
(3.2) |
(b) Foreign currency risk management
The Group’s overseas activities expose it to the financial risks of changes in foreign currency exchange
rates. Its Spanish subsidiary is the only foreign operation of the Group.
The Group is not materially exposed to transaction risks as all Group companies conduct their business
in their respective functional currencies. Group policy requires that transaction risks are hedged to the
functional currency of the subsidiary using foreign currency borrowings or derivatives where appropriate.
The Group is exposed to the translation risk from accounting for both the income and the net
investment held in a functional currency other than Sterling. The net investment risk may be hedged
using foreign currency borrowings and derivatives. Assets and liabilities denominated in non-functional
currencies are retranslated each month using the latest exchange rates. Income is also measured
monthly using the latest exchange rates and compared with a budget held at historical exchange rates.
Other than the natural hedge provided by foreign currency borrowings, the translation risk of income
is not hedged using derivatives. The policy is kept under periodic review and has not changed during
the year.
Hedge accounting
Hedging activities are evaluated periodically to ensure that they are in line with Group policy.
The Group has designated the carrying value of €100.0 million of foreign currency borrowings
(2024: €100.0 million) held at the balance sheet date as a net investment hedge of part of the
Group’s investment in Euro-denominated assets, equating to £87.0 million (2024: £82.6 million).
The change in the carrying value of £4.3 million (2024: £(3.9) million) of the borrowings designated
as a net investment hedge offset the exchange movement on the foreign currency net investments
which are presented in the consolidated statement of comprehensive income.
200
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
20
Financial instruments and fair value disclosures
continued
Foreign currency sensitivity
The Group is exposed to the Euro due to its Spanish operations. The following table details how the
Group’s income and equity would increase/(decrease) on a before tax basis following a 5% (2024: 5%)
change in the currency’s value against Sterling, all other variables remaining constant. The 5% change
represents a reasonably possible change in the specified Euro exchange rates in relation to Sterling.
Income |
Equity |
Income |
Equity |
|
sensitivity |
sensitivity |
sensitivity |
sensitivity |
|
2025 |
2025 |
2024 |
2024 |
|
£m |
£m |
£m |
£m |
|
Euro weakens against Sterling |
– |
4.1 |
– |
3.9 |
Euro strengthens against Sterling |
– |
(4.5) |
– |
(4.3) |
Credit risk is the risk of financial loss where counterparties are not able to meet their obligations.
Group policy is that surplus cash, when not used to repay borrowings, is placed on deposit
with the Group’s main relationship banks and with other banks or money market funds based on
a minimum credit rating and maximum exposure. There is no significant concentration of risk to any
single counterparty.
Land receivables arise from sales of surplus land on deferred terms. If the credit risk is not acceptable,
then the deferred payment must have adequate security, either by an appropriate guarantee or
a charge over the land. The fair value of any land held as security is considered by management
to be sufficient in relation to the carrying amount of the receivable to which it relates.
Trade and other receivables comprise mainly amounts receivable from various housing associations,
other housebuilders and corporate investors. Each outstanding amount is separately monitored and
managed in accordance with its specific contractual terms to determine if there is a risk of default.
Management considers that the credit quality of the various receivables is good in respect of the
amounts outstanding and therefore credit risk is considered to be low. There is no significant
concentration of risk.
Mortgage receivables, including shared equity loans, are in connection with various historical
sales promotion schemes and are measured at fair value through profit or loss. The mortgages
are secured by a second charge over the property with a low level of experienced credit losses
due to non-payment.
The carrying amount of financial assets, as detailed above, represents the Group’s maximum exposure
Liquidity risk is the risk that the Group does not have sufficient financial resources available to meet its
obligations as they fall due. The Group manages liquidity risk by continuously monitoring forecast and
actual cash flows, matching the expected cash flow timings of financial assets and liabilities with the
use of cash and cash equivalents, borrowings, overdrafts and committed revolving credit facilities
with a minimum of 12 months to maturity. Future borrowing requirements are forecast monthly
and funding headroom is maintained above forecast peak requirements to meet unforeseen events.
During the year the Group partially utilised its revolving credit facility and drew, and repaid, a maximum
drawings of £175.0 million (2024: nil) for working capital requirements. At 31 December 2025, the
Group’s borrowings and facilities had a range of maturities with a weighted average life of 4.5 years
(2024: 4.6 years).
In addition to the €100.0 million 5.08% senior loan notes maturing June 2030, the Group has
access to a committed £600.0 million revolving credit facility expiring July 2030, having agreed in
2025 to extend the revolving credit facility by one year. The borrowings and facilities contain financial
covenants based on minimum tangible net worth, maximum gearing and minimum interest cover.
At the balance sheet date, the total unused committed amount was £600.0 million (2024: £600.0 million)
Strategic report
Directors’ report
Financial statements
Shareholder information
201
Notes to the consolidated financial statements continued
20
Financial instruments and fair value disclosures
continued
relevant rate, based on the earliest date on which the Group can be required to pay financial liabilities on
an undiscounted basis, is as follows:
Trade |
|||||
Bank and |
Land |
and other |
Lease |
||
other loans |
creditors |
payables |
liabilities |
Total |
|
£m |
£m |
£m |
£m |
£m |
|
On demand |
– |
– |
– |
– |
– |
Within one year |
4.4 |
304.3 |
583.4 |
13.0 |
905.1 |
More than one year and |
|||||
less than two years |
4.4 |
126.6 |
17.9 |
9.4 |
158.3 |
More than two years and |
|||||
less than five years |
98.0 |
75.8 |
10.2 |
13.7 |
197.7 |
More than five years |
– |
42.0 |
4.2 |
4.7 |
50.9 |
31 December 2025 |
106.8 |
548.7 |
615.7 |
40.8 |
1,312.0 |
Trade |
|||||
Bank and |
Land |
and other |
Lease |
||
other loans |
creditors |
payables |
liabilities |
Total |
|
£m |
£m |
£m |
£m |
£m |
|
On demand |
– |
– |
– |
– |
– |
Within one year |
4.2 |
366.5 |
613.0 |
11.8 |
995.5 |
More than one year and |
|||||
less than two years |
4.2 |
158.7 |
21.0 |
10.6 |
194.5 |
More than two years and |
|||||
less than five years |
12.6 |
106.8 |
10.8 |
13.5 |
143.7 |
More than five years |
84.7 |
27.9 |
3.4 |
7.1 |
123.1 |
31 December 2024 |
105.7 |
659.9 |
648.2 |
43.0 |
1,456.8 |
Retirement benefit obligations
Total retirement benefit obligations of £18.1 million (2024: £22.2 million) comprise a defined benefit
pension liability of £17.8 million (2024: £22.0 million) and a post-retirement healthcare liability of
£0.3 million (2024: £0.2 million).
The Group operates the Taylor Wimpey Pension Scheme (TWPS), a defined benefit pension scheme,
which is closed to both new members and to future accrual. The Group also operates defined
contribution pension arrangements in the UK, which are available to new and existing UK employees.
A defined contribution plan is an arrangement under which the Group pays contributions to an
independently administered fund or policy; such contributions are based on a fixed percentage of
employees’ pay. The Group has no legal or constructive obligations to pay further contributions to the
fund/policy once the contributions have been paid. Employees’ benefits are determined by the amount
of contributions paid by the Group and the employee, together with investment returns earned on the
contributions arising from the performance of each individual’s chosen investments and the type of
pension the employee chooses to buy at retirement. As a result, actuarial risk (that benefits will be
lower than expected) and investment risk (that invested assets will not perform in line with expectations)
fall on the employee.
The Group’s contributions are recognised as an employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in
the future payments is available.
The Group’s defined contribution plan, the Taylor Wimpey Personal Choice Plan (TWPCP), is offered
to all new and existing monthly paid employees and is provided by Scottish Widows. The People’s
Pension is used for auto enrolment purposes for all weekly paid employees and those monthly
paid employees not participating in the TWPCP. The People’s Pension is provided by People’s
Partnership, one of the UK’s largest providers of financial benefits to construction industry employers
and individuals.
The Group made contributions to its defined contribution arrangements of £16.4 million in the year
202
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
The Group’s defined benefit pension scheme in the UK is the TWPS. The TWPS is a funded defined
benefit pension scheme which provides benefits to beneficiaries in the form of a guaranteed level of
pension payable for life. The level of benefits provided depends on an individual member’s length of
service and their salary in the final years leading up to retirement or date of ceasing active accrual if
earlier. Pension payments are generally increased in line with inflation subject to caps specified in
the TWPS rules. The TWPS is closed to new members and future accrual.
The Group operates the TWPS under the UK regulatory framework. Benefits are paid to members from
a Trustee-administered fund and the Trustee is responsible for ensuring that the TWPS is well managed
and that members’ benefits are secure. Scheme assets are held in trust.
The TWPS Trustee’s other duties include managing the investment of scheme assets, administration of
scheme benefits and exercising of discretionary powers. The Group works closely with the Trustee to
manage the TWPS. The Trustee of the TWPS owes fiduciary duties to the TWPS’ beneficiaries. The
appointment of the Directors to the Trustee Board is determined by the TWPS trust documentation.
The most recent triennial valuation of the TWPS was undertaken with a reference date of 31 December
2022. The table below sets out the key assumptions agreed as part of this valuation.
Assumptions |
|
Discount rate |
2.35% per annum above the yield on the nominal gilt yield curve. |
(pre-retirement) |
|
Discount rate |
0.50% per annum above the yield on the nominal gilt yield curve. |
(post-retirement) |
|
RPI inflation |
Implied inflation gilt yield curve. |
CPI inflation |
Prior to 2030: RPI less 0.8%. 2030 onwards: Equal to RPI. |
Mortality |
104% of S3PxA tables, CMI_2022 improvements with 1.50% long term trend rate, |
a smoothing factor of 7 and an initial addition parameter of 0.5%, w2020, w2021 and |
|
w2022 parameters set at 0%, 0% and 25% respectively. |
The result of this valuation was a Technical Provisions surplus at 31 December 2022 of £55 million.
As a result, no deficit contributions were required to be paid to the TWPS or to the escrow account
established following the 2019 valuation. On an IAS 19 accounting basis the underlying surplus in the
TWPS at 31 December 2025 was £107.0 million (31 December 2024: £90.2 million). The terms of
the TWPS are such that the Group does not have an unconditional right to a refund of surplus.
As a result, the Group recognised an adjustment to the underlying surplus in the TWPS on an
IAS 19 accounting basis of £124.8 million (31 December 2024: £112.2 million), resulting in an
IFRIC 14 deficit of £17.8 million (31 December 2024: £22.0 million), which represented the present
value of future contributions under the funding plan.
The TWPS Trustee holds a fixed charge over the escrow account, established following the 2019
valuation, that is recognised in other financial assets. At 31 December 2025 the escrow account held
£11.3 million (31 December 2024: £10.8 million), with interest earned by the escrow account being
retained within the escrow account. Transfers out of the escrow account (either to the TWPS or the
Group) are subject to the 2019 triennial funding arrangement entered into between the Group and the
Trustee, and as such the funds are restricted from use by the Group for other purposes and are
therefore not classified as cash or cash equivalents. The escrow account will be in place until
30 June 2028, at which point a funding test will be conducted and funds will either be paid to
the TWPS or returned to the Group.
In 2013, the Group introduced a £100.0 million Pension Funding Partnership (PFP) that utilises the
Group’s show homes, as well as six offices, in a sale and leaseback structure. This provides £5.1 million
of annual funding for the TWPS. In March 2024, the Group reached agreement with the Trustee to
restructure the PFP. The restructure retained the existing contributions payable until 2029 but replaced
the payment of up to £100 million that may have been due in 2029, with seven annual payments of
up to £12.5 million each from 2029 to 2035. These are only payable if the TWPS has a deficit on its
Technical Provisions funding basis at the prior 31 December. The assets held within the PFP do not
affect the IAS 19 figures (before IFRIC 14) as they remain assets of the Group, and are not assets of the
TWPS. At 31 December 2025, there was £94.1 million of property and £18.8 million of cash held within
Strategic report
Directors’ report
Financial statements
Shareholder information
203
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
of interest rate, inflation and longevity risks. The TWPS assets are approximately 102% (31 December
2024: 102%) hedged against changes in both interest rates and inflation expectations on the scheme’s
long term funding basis that is currently used for investment strategy purposes. The TWPS also benefits
from a bulk annuity contract which covers some of the largest liabilities in the scheme, providing
protection against interest rate, inflation and longevity risk.
The weighted average duration of the defined benefit obligation at the end of the year is approximately
10 years (31 December 2024: approximately 11 years).
In July 2024, the Court of Appeal upheld a High Court decision from June 2023 in Virgin Media Limited
v NTL Pension Trustees II Limited, which ruled that certain historic amendments made to salary-related
contracted-out pension schemes were invalid if the requirement to obtain written actuarial confirmation
(a section 37 confirmation) was not prepared for those amendments. This ruling affects amendments
made to contracted-out salary-related schemes between 6 April 1997 and 5 April 2016.
The Trustee of the TWPS had commenced a review of the Scheme’s historic amendments in light of this
ruling. In a statement on 5 June 2025, the Government confirmed that it would legislate to address the
issue and draft legislation was included in the Pension Schemes Bill at the start of September 2025.
The Bill is currently making its way through the legislative timetable and is expected to come into force
during 2026. The Trustee of the TWPS expects to conclude its review during 2026 once the legislation
has been finalised. For that reason, it is currently not possible to assess with any certainty what, if any,
the impact would be on the Scheme.
Accounting assumptions
The assumptions used in calculating the accounting costs and obligations of the TWPS, as detailed
below, are set by the Directors after consultation with independent actuaries. The basis for these
assumptions is prescribed by IAS 19 and they do not reflect the assumptions that may be used
in future funding valuations of the TWPS.
The discount rate used to determine the present value of the obligations is set by reference to
market yields on high-quality corporate bonds with regard for the duration to the TWPS liabilities.
The assumption for RPI inflation is set by reference to the Bank of England’s implied inflation curve
with regard to the duration of the TWPS liabilities, with appropriate adjustments to reflect distortions
due to supply and demand for inflation-linked securities. CPI inflation is set by reference to RPI inflation
as no CPI-linked bonds exist to render implied CPI inflation directly observable.
The mortality assumption is based on 102% of S3PxA tables, CMI_2024 improvements with a 1% long
term trend rate, a smoothing factor of 7, an initial addition parameter of 0.25% and a half-life parameter
of 0.5. The mortality assumption used in 2024 was 102% of S3PxA tables, CMI_2023 improvements
with a 1% long term trend rate, a smoothing factor of 7, an initial addition parameter of 0.25%, a w2020
and w2021 parameter of 0% and a w2022 and w2023 parameter of 100%.
Accounting valuation assumptions |
2025 |
2024 |
At 31 December: |
||
Discount rate for scheme liabilities |
5.40% |
5.35% |
General pay inflation |
n/a |
n/a |
Deferred pension increases |
2.00% |
2.30% |
Pension increases* |
1.85%-3.60% |
1.95%-3.70% |
*
Pension increases depend on the section of the TWPS of which each member is a part.
The current life expectancies (in years) underlying the value of the accrued liabilities for the TWPS are:
2025 |
2024 |
|||
Life expectancy |
Male |
Female |
Male |
Female |
Member currently aged 65 |
87 |
89 |
86 |
89 |
Member currently aged 45 |
87 |
90 |
87 |
90 |
The table below shows the impact to the present value of scheme liabilities of movements in key
assumptions, measured using the same method as the defined benefit scheme.
Impact on |
|||
scheme |
|||
Impact on |
liabilities |
||
Assumption |
Change in assumption |
scheme liabilities |
(%) |
Discount rate |
Decrease by 0.5% p.a. |
Increase by £71m |
4.6 |
Rate of inflation* |
Increase by 0.5% p.a. |
Increase by £37m |
2.4 |
Life expectancy |
Members live 1 year longer |
Increase by £62m |
4.0 |
*
Assumed to affect deferred revaluation and pensioner increases in payment.
The sensitivity of increasing life expectancy has been reduced by the medically underwritten buy-in.
204
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
31 December 2025 |
Level 1 |
Level 2 |
Level 3 |
Total |
Percentage of total |
Fair value of scheme assets of the TWPS |
£m |
£m |
£m |
£m |
scheme assets |
Diversified growth funds (a) |
– |
240.8 |
– |
240.8 |
15.9% |
Multi-asset credit |
0.2 |
264.2 |
– |
264.4 |
17.4% |
Direct lending |
6.1 |
– |
99.3 |
105.4 |
7.0% |
Fixed income |
5.9 |
164.6 |
– |
170.5 |
11.3% |
Liability-driven investment (b) |
48.3 |
557.1 |
– |
605.4 |
40.0% |
Insurance policies in respect of certain members |
– |
– |
120.0 |
120.0 |
7.9% |
Cash |
7.3 |
– |
– |
7.3 |
0.5% |
67.8 |
1,226.7 |
219.3 |
1,513.8 |
100.0% |
31 December 2024 |
Level 1 |
Level 2 |
Level 3 |
Total |
Percentage of total |
Fair value of scheme assets of the TWPS |
£m |
£m |
£m |
£m |
scheme assets |
Equity (c) |
– |
29.1 |
– |
29.1 |
1.9% |
Diversified growth funds (a) |
– |
224.3 |
– |
224.3 |
14.7% |
Multi-asset credit |
0.2 |
253.2 |
– |
253.4 |
16.7% |
Direct lending |
1.0 |
– |
117.4 |
118.4 |
7.8% |
Fixed income |
2.5 |
187.6 |
– |
190.1 |
12.5% |
Liability-driven investment (b) |
39.2 |
535.0 |
– |
574.2 |
37.7% |
Insurance policies in respect of certain members |
– |
– |
124.0 |
124.0 |
8.1% |
Cash |
8.8 |
– |
– |
8.8 |
0.6% |
51.7 |
1,229.2 |
241.4 |
1,522.3 |
100.0% |
(a) This amount relates to the Scheme’s Diversified Risk Premia (DRP) allocation. The net leverage on the two funds in the DRP allocation at 31 December 2025 was 1.7x and 1.6x (31 December 2024: 0.5x and 0.7x).
(b) The bespoke Liability Driven Investment (LDI) fund is designed to protect the Scheme against movements in interest rates and inflation. The overall leverage on the LDI fund at 31 December 2025 was approximately 3.0x (31 December 2024: 3.0x).
(c) This amount relates to Volatility Controlled Equities. The leverage at 31 December 2024 was 3.7x. As at 31 December 2025 the Scheme was no longer invested in this fund.
The value of the annuities held by the TWPS are set equal to the value of the liabilities which these annuities match. All other fair values are provided by the fund managers and collated by Northern Trust
as custodian, who independently price the securities from their preferred vendor sources where the data is publicly available and rely on investment manager data where this information is not available.
Where available, the fair values are quoted prices (e.g. listed equity). Unlisted investments (e.g. private equity) are included at values provided by the fund manager in accordance with relevant guidance.
Other significant assets are valued based on observable inputs.
Strategic report
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Financial statements
Shareholder information
205
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
| 2025 |
2024 |
|||||
Asset/(liability) |
Asset/(liability) |
|||||
Present value |
Fair value of |
recognised on |
Present value |
Fair value of |
recognised on |
|
of obligation |
scheme assets |
balance sheet |
of obligation |
scheme assets |
balance sheet |
|
£m |
£m |
£m |
£m |
£m |
£m |
|
At 1 January |
(1,544.3) |
1,522.3 |
(22.0) |
(1,679.8) |
1,653.5 |
(26.3) |
Administration expenses |
– |
(2.8) |
(2.8) |
– |
(3.1) |
(3.1) |
Interest (expense)/income |
(79.8) |
78.7 |
(1.1) |
(74.7) |
73.6 |
(1.1) |
Total amount recognised in income statement |
(79.8) |
75.9 |
(3.9) |
(74.7) |
70.5 |
(4.2) |
Remeasurement gain/(loss) on scheme assets |
– |
15.7 |
15.7 |
– |
(98.5) |
(98.5) |
Change in demographic assumptions |
(18.2) |
– |
(18.2) |
(1.0) |
– |
(1.0) |
Change in financial assumptions |
30.5 |
– |
30.5 |
104.1 |
– |
104.1 |
Experience (loss)/gain |
(20.4) |
– |
(20.4) |
1.3 |
– |
1.3 |
Adjustment to liabilities for IFRIC 14 |
(6.6) |
– |
(6.6) |
(4.5) |
– |
(4.5) |
Total remeasurements in other comprehensive income |
(14.7) |
15.7 |
1.0 |
99.9 |
(98.5) |
1.4 |
Employer contributions |
– |
7.1 |
7.1 |
– |
7.1 |
7.1 |
Employee contributions |
– |
– |
– |
– |
– |
– |
Benefit payments |
107.2 |
(107.2) |
– |
110.3 |
(110.3) |
– |
At 31 December |
(1,531.6) |
1,513.8 |
(17.8) |
(1,544.3) |
1,522.3 |
(22.0) |
2025 | 2024 | |
Accounting valuation | £m | £m |
Fair value of scheme assets | 1,513.8 | 1,522.3 |
Present value of scheme obligations | (1,406.8) | (1,432.1) |
Surplus in scheme | 107.0 | 90.2 |
IFRIC 14 limitation on recognition of surplus | (124.8) | (112.2) |
Deficit after IFRIC 14 adjustment | (17.8) | (22.0) |
206
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
The TWPS, in common with the majority of such defined benefit pension schemes in the UK, has a number of areas of risk. These areas of risk, and the ways in which the Group has sought to manage them,
are set out in the table below.
The risks are considered from both a funding perspective, which drives the cash commitments of the Group, and from an accounting perspective, i.e. the extent to which such risks affect the amounts recorded in
the consolidated financial statements.
Although investment decisions in the UK are the responsibility of the TWPS Trustee, the Group takes an active interest to ensure that the pension scheme risks are managed efficiently. The Group has regular
meetings with the Trustee to discuss investment performance, regulatory changes and proposals to actively manage the position of the TWPS.
Risk |
Description |
Asset volatility |
The TWPS strategy remains well diversified through its exposure to a range of asset classes, including direct loans, government bonds and a broad spectrum of corporate bonds and other fixed income |
exposures. The TWPS invests across a number of managers to reduce manager concentration risk. |
|
The TWPS does not target a specific asset allocation but instead bases its strategic asset allocation on the return objectives and risk constraints agreed upon by the Trustee. In response to the significant |
|
increases in bond yields over 2022, the Trustee took prudent steps to ensure that the TWPS continued to have sufficient collateral in support of the liability-hedging programme. During the course of 2023 and |
|
2024, the Company and Trustee rebalanced the portfolio into more liquid assets with the appointment of three new managers during the period, with all three having daily dealing terms and which are reflected |
|
in the asset allocation at the end of the reporting period. |
|
Changes in |
Falling bond yields tend to increase the funding and accounting liabilities. However, the investment in bond and liability-matching derivatives offers a significant degree of matching, i.e. the movement in assets |
bond yields |
arising from changes in bond yields substantially matches the movement in the funding or accounting liabilities. In this way, the exposure to movements in bond yields is reduced. |
Investing in |
To maintain appropriate diversification of investments within the TWPS assets and to take advantage of overseas investment returns, a proportion of the underlying investment portfolio is invested overseas. |
foreign currency |
To balance the risk of investing in foreign currencies while having an obligation to settle benefits in Sterling, a currency hedging programme, using forward foreign exchange contracts, has been put in place |
to reduce the currency exposure of these overseas investments to the targeted level. |
|
Asset/liability |
In order to manage the TWPS’ economic exposure to interest rates and inflation rates, a liability-hedging programme has been put in place. Derivatives are used to hedge changes in the TWPS’ assets from |
mismatch |
changes in its liabilities, substantially reducing asset/liability mismatch risk. However, it is only possible to target matching of the assets with the liabilities assessed on one measure. Due to its relevance in driving |
Company contributions, the current policy is to assess the matching against the TWPS’ long term funding basis. This can lead to a slight mismatch between the assets and the liabilities assessed on the |
|
Company’s accounting basis, in particular if there is a change in corporate bond yield spreads. |
Strategic report
Directors’ report
Financial statements
Shareholder information
207
Notes to the consolidated financial statements continued
21
Retirement benefit obligations
continued
Risk |
Description |
Liquidity |
The TWPS requires sufficient liquidity to meet benefit payments, and to ensure sufficient collateral to support the liability-hedging programme. The Trustee has adopted processes to ensure that the TWPS |
holds sufficient assets within the liability-hedging programme to cover the impact of a further 4.0% increase in yields. The manager of the liability-hedging programme also has direct access to further liquid |
|
assets should they be required. |
|
Across the portfolio, the TWPS has liquid assets which could be sold at short notice if required. In particular, 66.8% are managed in either segregated accounts or daily/weekly dealt pooled funds and can be |
|
realised within a few business days under normal market conditions, and 16.7% are invested in pooled funds with monthly redemption dates. Of the remaining assets, 0.6% could be redeemed within |
|
approximately six to nine months of notification in normal market conditions, and the rest are made up of illiquid assets including insurance policies and illiquid debt (which includes direct lending bonds). |
|
Life expectancy |
The majority of the TWPS obligations are to provide a pension for the life of the member on retirement, so increases in life expectancy will result in an increase in the TWPS’ liabilities. The inflation-linked nature |
of the majority of benefit payments from the TWPS increases the sensitivity of the liabilities to changes in life expectancy. During 2014, the Group reached agreement with Partnership Life Assurance Company |
|
Limited (now Just Group plc) to insure the benefits of c.100 members with the greatest anticipated liabilities through a medically underwritten buy-in. By insuring these members, the Group has removed more |
|
than 10% of longevity risk from the TWPS by significantly reducing the longevity risk in relation to a large proportion of the liabilities. |
|
Climate risk |
The TWPS Trustee recognises that climate change is a financial risk affecting the TWPS assets. The TWPS Trustee integrates the monitoring of appropriate climate risk metrics into its risk management |
framework and considers these metrics when making investment decisions. The TWPS Trustee requires its appointed investment managers to integrate climate change risks and opportunities into their |
|
investment processes as applied to the assets of the TWPS. |
|
Responsible |
The TWPS Trustee recognises that environmental, social and governance (ESG) risks can be financially material risks and should be considered as part of the TWPS’ investment strategy. The TWPS Trustee |
investment |
has adopted a responsible investment policy and considers ESG risks when making investment decisions. The TWPS Trustee also has a programme of regular dialogue with its investment managers, with |
a particular focus on the TWPS Trustee’s key themes of Climate Change and Diversity, Equity and Inclusion. The TWPS Trustee expects its investment managers to have robust ESG, climate change and |
|
stewardship policies and processes in place, and challenges its managers where deficiencies or areas for further improvement are identified. |
208
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Provisions
Cladding |
||||
fire safety |
Leasehold |
Other |
Total |
|
£m |
£m |
£m |
£m |
|
At 1 January 2024 |
191.9 |
19.5 |
75.3 |
286.7 |
Additions |
88.0 |
– |
5.8 |
93.8 |
Utilisation |
(28.5) |
(5.6) |
(7.7) |
(41.8) |
Released |
(19.1) |
– |
(12.7) |
(31.8) |
Foreign exchange |
– |
– |
(0.2) |
(0.2) |
At 31 December 2024 |
232.3 |
13.9 |
60.5 |
306.7 |
Additions |
225.8 |
– |
43.7 |
269.5 |
Utilisation |
(49.4) |
(3.3) |
(35.5) |
(88.2) |
Unwind of discount |
3.9 |
– |
– |
3.9 |
Foreign exchange |
– |
– |
0.2 |
0.2 |
At 31 December 2025 |
412.6 |
10.6 |
68.9 |
492.1 |
2025 |
2024 |
|
£m |
£m |
|
Current |
211.1 |
161.7 |
Non-current |
281.0 |
145.0 |
31 December |
492.1 |
306.7 |
In 2018, the Group established an exceptional provision for the cost of replacing ACM on a small
number of legacy developments, which has been increased since then to reflect the latest estimates
of costs to complete the planned works as well as the requirements of the Government’s Building Safety
Pledge for Developers (see Note 6). It is expected that around 35% of the remaining provision will be
utilised over the next 12 months.
In 2017, the Group launched a leasehold assistance scheme to help certain customers restructure
their ground rent agreements with their freeholder and established an associated provision of
£130.0 million to fund this. The provision remaining will be utilised as leaseholders apply to the scheme
and have their leases varied. As the timing of applications by leaseholders is outside of the control of
the Group, the provision is recognised as a current liability.
Other provisions consist of a remedial work provision covering various obligations on a limited
number of sites across the Group. Other provisions also include amounts for legal claims and other
contract-related costs associated with various matters arising across the Group, the majority of
which are anticipated to be settled within a three-year period; however, there is some uncertainty
regarding the timing of these outflows due to the nature of the claims and the length of time it can
take to reach settlement. The increase in the other provisions in the period is largely due to the costs
recognised for remediation at one of the Group’s London developments where the original principal
contractor was carrying out the works, but it has recently ceased operations on site, and the costs
Share capital
2025 |
2024 |
|
£m |
£m |
|
Authorised: |
||
22,200,819,176 (2024: 22,200,819,176) ordinary shares of 1p each |
222.0 |
222.0 |
1,158,299,201 (2024: 1,158,299,201) deferred ordinary shares of 24p each |
278.0 |
278.0 |
31 December |
500.0 |
500.0 |
Number of |
Number of deferred |
||
ordinary shares |
ordinary shares |
£m |
|
Issued and fully paid: |
|||
31 December 2024 |
3,556,985,103 |
1,065,566,274 |
291.3 |
31 December 2025 |
3,556,985,103 |
1,065,566,274 |
291.3 |
During the year, the Company issued nil (2024: nil) ordinary shares to satisfy option exercises.
The Company has two classes of shares:
• Ordinary shares of 1p, each of which carries the right to one vote at general meetings of
the Company and such other rights and obligations as are set out in the Company’s Articles
of Association.
• Deferred ordinary shares of 24p, which carry no voting rights and no entitlement to any dividend.
The deferred ordinary shares were issued as part of a capital reorganisation in 2009 and have not
Strategic report
Directors’ report
Financial statements
Shareholder information
209
Notes to the consolidated financial statements continued
Share premium
2025 |
2024 |
|
£m |
£m |
|
At 1 January |
777.9 |
777.9 |
Shares issued in year |
– |
– |
At 31 December |
777.9 |
777.9 |
Other reserves
Capital |
||||
redemption |
Translation |
Total other |
||
reserve |
reserve |
Other |
reserves |
|
£m |
£m |
£m |
£m |
|
Balance at 1 January 2024 |
32.4 |
8.0 |
504.0 |
544.4 |
Exchange differences on |
||||
translation of foreign operations |
– |
(8.8) |
– |
(8.8) |
Movement in fair value of |
||||
hedging instruments |
– |
3.9 |
– |
3.9 |
Balance at 31 December 2024 |
32.4 |
3.1 |
504.0 |
539.5 |
Exchange differences on |
||||
translation of foreign operations |
– |
8.2 |
– |
8.2 |
Movement in fair value of |
||||
hedging instruments |
– |
(4.3) |
– |
(4.3) |
Balance at 31 December 2025 |
32.4 |
7.0 |
504.0 |
543.4 |
Capital redemption reserve
The capital redemption reserve arose on a redemption of the Company’s shares and is
not distributable.
Translation reserve
The translation reserve consists of exchange differences arising on the translation of overseas
operations. It also includes changes in the fair value of hedging instruments where such
instruments are designated and effective as hedges of investment in overseas operations.
Other reserves
£499.1 million of other reserves arose on the cash box placing that occurred in June 2020
Own shares
£m |
|
Balance at 1 January 2024 |
29.7 |
Own shares acquired |
4.0 |
Disposed of on exercise of options |
(6.1) |
Balance at 31 December 2024 |
27.6 |
Own shares acquired |
3.3 |
Disposed of on exercise of options |
(10.7) |
Balance at 31 December 2025 |
20.2 |
The own shares reserve represents the cost of shares in Taylor Wimpey plc purchased in the market,
those held as treasury shares and those held by the Taylor Wimpey Employee Share Ownership Trusts
(ESOTs) to satisfy options and conditional share awards under the Group’s share plans.
2025 |
2024 |
|
Number |
Number |
|
Ordinary shares held in trust and treasury for bonus, |
||
option and performance award plans |
15.7m |
20.6m |
During the year, Taylor Wimpey plc purchased 3.1 million of its own shares to be held in the ESOTs
(2024: 3.2 million). The market value of the shares held in the ESOTs and treasury at 31 December 2025
was £16.9 million (2024: £25.1 million) and their nominal value was £0.2 million (2024: £0.2 million).
Dividends on these shares have been waived except for a nominal aggregate amount in pence.
ESOTs are used to hold the Company’s shares which have been acquired on the market. These shares
and those held in treasury are used to meet the valid exercise of options and/or vesting of conditional
awards and/or award of shares under the Group’s share option plans.
The ESOTs’ entire holding of shares and those held in treasury at 31 December 2025 and
31 December 2024 were covered by outstanding options and conditional awards over shares
210
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Notes to the cash flow statement
Cash and cash equivalents comprise cash at bank and other short term highly liquid investments with
an original maturity of three months or less.
Movement in net cash
Cash and cash |
Bank and |
Total |
|
equivalents |
other loans |
net cash |
|
£m |
£m |
£m |
|
Balance at 1 January 2024 |
764.9 |
(87.0) |
677.9 |
Net cash flow |
(113.5) |
– |
(113.5) |
Foreign exchange |
(4.0) |
4.4 |
0.4 |
Balance at 31 December 2024 |
647.4 |
(82.6) |
564.8 |
Net cash flow |
(220.9) |
– |
(220.9) |
Foreign exchange |
3.1 |
(4.4) |
(1.3) |
Balance at 31 December 2025 |
429.6 |
(87.0) |
342.6 |
For movements in lease liabilities in the year see Note 19. Inventory working capital movements in the
Contingent liabilities and capital commitments
The Group in the normal course of business has given guarantees and entered into counter-indemnities
in respect of bonds relating to the Group’s own contracts and has given guarantees in respect of the
Group’s share of certain contractual obligations of joint ventures. The possibility of any outflow in
settlement for these is considered to be remote.
The Group has entered into counter-indemnities in the normal course of business in respect of
performance bonds.
Provision is made for the Directors’ best estimate of all known legal claims and all legal actions
in progress. The Group takes legal advice as to the likelihood of success of claims and actions
and no provision is made where the Directors consider, based on that advice, that the action is
unlikely to succeed.
The Group has no material contingent liabilities or capital commitments at 31 December 2025
Strategic report
Directors’ report
Financial statements
Shareholder information
211
Notes to the consolidated financial statements continued
Share-based payments
Equity-settled share option plan
Details of equity-settled share-based payment arrangements are set out in the Remuneration Committee report on pages 129 to 158. The tables below show the movements in the schemes in the year as well as
their weighted average exercise price (WAEP).
2025 |
2024 |
|||
Sharesave (SAYE) |
Options |
WAEP (in £) |
Options |
WAEP (in £) |
Outstanding at the beginning of the year |
24,821,688 |
0.96 |
25,913,136 |
0.91 |
Granted during the year |
16,132,785 |
0.78 |
3,809,591 |
1.25 |
Forfeited during the year |
(6,327,554) |
1.07 |
(2,727,832) |
0.94 |
Exercised during the year |
(3,582,849) |
0.86 |
(2,173,207) |
0.99 |
Outstanding at the end of the year |
31,044,070 |
0.85 |
24,821,688 |
0.96 |
Exercisable at the end of the year |
4,883,740 |
0.87 |
1,128,215 |
1.33 |
The remaining Sharesave options outstanding at 31 December 2025 had a range of exercise prices from £0.78 to £1.42 (2024: £0.83 to £1.42) and a weighted average remaining contractual life of 2.87 years
(2024: 2.44 years).
2025 |
2024 |
|||
Share Incentive Plan (SIP) |
Options |
WAEP (in £) |
Options |
WAEP (in £) |
Outstanding at the beginning of the year |
7,419,628 |
– |
7,275,770 |
– |
Granted during the year |
2,050,769 |
– |
1,459,860 |
– |
Forfeited during the year |
(567,632) |
– |
(511,476) |
– |
Exercised during the year |
(640,165) |
– |
(804,526) |
– |
Outstanding at the end of the year |
8,262,600 |
– |
7,419,628 |
– |
Exercisable at the end of the year |
3,961,848 |
– |
3,444,567 |
– |
The table above represents shares that are granted to employees on a matching basis; when the employee joins the scheme, purchased shares are matched on a one-to-one basis and these awards do not expire.
212
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
29
Share-based payments
continued
2025 |
2024 |
|||
Performance Share Plan (PSP) |
Options |
WAEP (in £) |
Options |
WAEP (in £) |
Outstanding at the beginning of the year |
5,763,941 |
– |
5,878,715 |
– |
Granted during the year |
2,385,146 |
– |
1,853,039 |
– |
Forfeited during the year |
(864,309) |
– |
(1,325,810) |
– |
Exercised during the year |
(1,026,956) |
– |
(642,003) |
– |
Outstanding at the end of the year |
6,257,822 |
– |
5,763,941 |
– |
Exercisable at the end of the year |
– |
– |
– |
– |
The conditional awards outstanding at 31 December 2025 had a weighted average remaining contractual life of 1.79 years (2024: 1.75 years).
The average share price at the date of exercise across all options exercised during the year was £1.05 (2024: £1.42). For share plans granted during the current and preceding year, the fair value of the awards at
the grant date was determined as follows:
Share awards with |
Share awards with |
|||
no market conditions |
market conditions |
|||
2025 |
2024 |
2025 |
2024 |
|
Model |
Binomial |
Binomial |
Monte Carlo |
Monte Carlo |
Weighted average share price |
£1.06 |
£1.58 |
£1.10 |
£1.39 |
Weighted average exercise price |
£0.72 |
£0.97 |
Nil |
Nil |
Expected volatility |
30% |
31% |
28% |
31% |
Expected life |
3/5 years |
3/5 years |
3 years |
3 years |
Risk-free rate |
4.0% |
3.8% |
4.09% |
4.09% |
Expected dividend yield |
8.77% |
5.79% |
0.0% |
0.0% |
Weighted average fair value of options granted in year |
£0.29 |
£0.64 |
£0.37 |
£0.54 |
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the expected term. The expected life used in the model was based on historical exercise patterns.
The Group recognised a share-based payment expense of £11.2 million in the year (2024: £12.1 million), which was composed of £8.9 million in relation to equity settled schemes and £2.3 million in relation to
Strategic report
Directors’ report
Financial statements
Shareholder information
213
Notes to the consolidated financial statements continued
Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated
on consolidation and are not disclosed in this note. The pension schemes of the Group are related
parties. Arrangements between the Group and its pension schemes are disclosed in Note 21.
Transactions between the Group and its joint ventures are disclosed below. The Group has loans
with joint ventures that are detailed in Note 13.
Taylor Wimpey Scottish Limited Partnership (the Partnership) is fully consolidated into these financial
statements and the Group has taken advantage of the exemption available under the Partnerships
(Accounts) Regulations 2008 to not file separate accounts for the Partnership.
Trading transactions
During the year, Group sales to joint ventures totalled £26.4 million (2024: £26.9 million) and purchases
totalled £2.8 million (2024: £6.3 million). Interest received from joint ventures was nil (2024: £2.1 million).
At 31 December 2025, receivables from joint ventures were £2.6 million (31 December 2024: £5.0
million) and payables were £19.0 million (31 December 2024: £33.5 million). Included within the
payables balance is £14.8 million (31 December 2024: £33.0 million) of a cash transfer that occurred in
the prior year from a joint venture due to that joint venture having a short term excess of cash beyond
that required for its immediate operational purposes, it is returnable to the joint venture on demand and
no interest is due on the balance.
The key management personnel of the Group are the members of the Group Management Team (GMT)
as presented on page 95.
The remuneration information for the Executive Directors is set out in the Remuneration Committee
report on page 148. The aggregate compensation for the other members of the GMT is as follows:
2025 | 2024 | |
£m | £m | |
Short term employee benefits | 3.5 | 5.0 |
Post-employment benefits | 0.3 | 0.3 |
Total (excluding share-based payments charge) | 3.8 | 5.3 |
In addition to the amounts above, a share-based payment charge of £0.8 million (2024: £1.8 million)
Dividends
2025 | 2024 | |
£m | £m | |
Proposed | ||
Interim dividend 2025: 4.67p (2024: 4.80p) per ordinary share of 1p each | 165.4 | 169.9 |
Final dividend 2025: | ||
270.0 | 334.9 | |
Amounts recognised as distributions to equity holders | ||
Paid | ||
Final dividend 2024: 4.66p (2023: 4.79p) per ordinary share of 1p each | 165.0 | 169.5 |
Interim dividend 2025: 4.67p (2024: 4.80p) per ordinary share of 1p each | 165.4 | 169.9 |
330.4 | 339.4 |
The Directors recommend a final dividend for the year ended 31 December 2025 of 2.95 pence per
share (2024: 4.66 pence per share) subject to shareholder approval at the Annual General Meeting,
with an equivalent final dividend charge of c.£105 million based on the number of shares in issue at the
end of the year (2024: £165.0 million). The final dividend will be paid on 15 May 2026 to all shareholders
registered at the close of business on 7 April 2026.
In accordance with IAS 10 ‘Events after the Reporting Period’, the proposed final dividend has not been
214
Taylor Wimpey plc
Annual Report and Accounts 2025
Notes to the consolidated financial statements continued
Alternative performance measures
The Group uses a number of alternative performance measures (APMs) which are not defined
within UK-adopted international accounting standards. The Directors use these measures in order
to assess the underlying operational performance of the Group and, as such, these measures should
be considered alongside statutory measures. The following APMs are referred to throughout the year
end results.
Profit before taxation and exceptional items and profit for the period before
exceptional items
The Directors consider that the removal of exceptional items from the reported results provides more
clarity on the performance of the Group. They are reconciled to profit before tax and profit for the period
on the face of the consolidated income statement.
Adjusted operating profit and adjusted operating profit margin
Throughout the Annual Report and Accounts, adjusted operating profit is used as one of the main
measures of performance. Adjusted operating profit is defined as profit on ordinary activities before
financing, exceptional items and tax, after share of results of joint ventures. The Directors consider this
to be an important measure of the underlying performance of the Group. Adjusted operating profit
margin is calculated as adjusted operating profit divided by total revenue.
In preparation for the adoption of IFRS 18 ‘Presentation and Disclosure in Financial Statements’ in 2027,
which for the first time defines an operating profit subtotal, the Group has renamed the measures of
operating profit and operating profit margin to adjusted operating profit and adjusted operating profit
margin respectively. The calculation methodologies for the measures are unchanged.
2025 |
2024 |
|
Profit on ordinary activities before financing (£m) |
174.7 |
333.9 |
Adjusted for: |
||
Share of results of joint ventures (£m) (Note 13) |
2.1 |
(15.9) |
Exceptional items (£m) (Note 6) |
243.8 |
98.2 |
Adjusted operating profit (£m) |
420.6 |
416.2 |
Revenue (£m) (Note 4) |
3,844.6 |
3,401.2 |
Adjusted operating profit margin |
10.9% |
12.2% |
Net operating assets
Net operating assets is defined as basic net assets less net cash, excluding net taxation balances
and accrued dividends. Average net operating assets is the average of the opening and closing net
operating assets of the 12-month period. With return on net operating assets, the Directors consider
this to be an important measure of the underlying operating efficiency and performance of the Group.
2025 |
2024 |
2023 |
|
Basic net assets (£m) |
4,186.8 |
4,405.2 |
4,523.4 |
Adjusted for: |
|||
Cash (£m) (Note 16) |
(429.6) |
(647.4) |
(764.9) |
Borrowings (£m) (Note 17) |
87.0 |
82.6 |
87.0 |
Net taxation (£m) |
(31.1) |
(23.4) |
(21.8) |
Accrued dividends (£m) |
– |
– |
– |
Net operating assets (£m) |
3,813.1 |
3,817.0 |
3,823.7 |
Average basic net assets (£m) |
4,296.0 |
4,464.3 |
|
Average net operating assets (£m) |
3,815.1 |
3,820.4 |
Return on net operating assets
Return on net operating assets is defined as rolling 12-month adjusted operating profit divided by the
average of opening and closing net operating assets. The Directors consider this to be an important
measure of the underlying operating efficiency and performance of the Group.
2025 |
2024 |
|
Adjusted operating profit (£m) |
420.6 |
416.2 |
Average net operating assets (£m) |
3,815.1 |
3,820.4 |
Return on net operating assets |
11.0% |
10.9% |
Strategic report
Directors’ report
Financial statements
Shareholder information
215
Notes to the consolidated financial statements continued
32
Alternative performance measures
continued
This is calculated as net assets before any accrued dividends, excluding intangible assets, divided
by the number of ordinary shares in issue at the end of the period. The Directors consider this to be
a good measure of the value intrinsic within each ordinary share.
| 2025 |
2024 |
|
Basic net assets (£m) |
4,186.8 |
4,405.2 |
Adjusted for: |
||
Intangible assets (£m) (Note 11) |
(2.7) |
(1.5) |
Tangible net assets (£m) |
4,184.1 |
4,403.7 |
Ordinary shares in issue (millions) |
3,557.0 |
3,557.0 |
Tangible net assets per share (pence) |
117.6 |
123.8 |
Adjusted basic and diluted earnings per share
This is calculated as earnings attributed to shareholders of the Parent, excluding exceptional items and
tax on exceptional items, divided by the weighted average number of shares in issue during the period.
The Directors consider this provides an important measure of the underlying earnings capacity of the
Group. Note 10 shows a reconciliation from basic and diluted earnings per share to adjusted basic
and diluted earnings per share.
Net operating asset turn
This is defined as 12-month rolling total revenue divided by the average of opening and closing net
operating assets. The Directors consider this to be a good indicator of how efficiently the Group is
utilising its assets to generate value for shareholders.
2025 |
2024 |
|
Revenue (£m) (Note 4) |
3,844.6 |
3,401.2 |
Average net operating assets (£m) |
3,815.1 |
3,820.4 |
Net operating asset turn |
1.01 |
0.89 |
Net cash
Net cash is defined as total cash less total borrowings (bank and other loans). This is considered by the
Directors to be the best indicator of the financing position of the Group. This is reconciled in Note 27.
Cash conversion
This is defined as cash generated from operations, which excludes payments relating to exceptional
charges, divided by adjusted operating profit on a rolling 12-month basis. The Directors consider this
measure to be a good indication of how efficiently the Group is turning profit into cash.
2025 |
2024 |
|
Cash generated from operations (£m) |
268.0 |
311.7 |
Adjusted operating profit (£m) |
420.6 |
416.2 |
Cash conversion |
63.7% |
74.9% |
Adjusted gearing
This is defined as adjusted net debt divided by basic net assets. The Directors consider this to be
a more representative measure of the Group’s gearing levels. Adjusted net debt is defined as net cash
less land creditors.
2025 |
2024 |
|
Cash (£m) (Note 16) |
429.6 |
647.4 |
Loans (£m) (Note 17) |
(87.0) |
(82.6) |
Net cash (£m) |
342.6 |
564.8 |
Land creditors (£m) (Note 18) |
(522.5) |
(627.9) |
Adjusted net debt (£m) |
(179.9) |
(63.1) |
Basic net assets (£m) |
4,186.8 |
4,405.2 |
Adjusted gearing |
4.3% |
1.4% |
Post balance sheet events
Taylor Wimpey plc
Annual Report and Accounts 2025
216
Company balance sheet
at 31 December 2025
Note
2025
£m
2024
£m
Non-current assets
Investments in Group undertakings
4
4,526.9
4,518.7
Trade and other receivables
5
71.3
68.0
4,598.2
4,586.7
Current assets
Trade and other receivables
5
829.8
857.9
Cash and cash equivalents
384.0
509.8
1,213.8
1,367.7
Current liabilities
Trade and other payables
6
(833.0)
(823.2)
(833.0)
(823.2)
Net current assets
380.8
544.5
Total assets less current liabilities
4,979.0
5,131.2
Non-current liabilities
Bank and other loans
7
(87.0)
(82.6)
Provisions
(1.0)
(1.0)
Net assets
4,891.0
5,047.6
Equity
Share capital
8
291.3
291.3
Share premium
9
777.9
777.9
Own shares
10
(20.2)
(27.6)
Other reserves
11
536.0
536.0
Retained earnings
12
3,306.0
3,470.0
Total equity
4,891.0
5,047.6
As permitted by Section 408 of the Companies Act 2006, Taylor Wimpey plc has not presented
its own income statement. The profit of the Company for the financial year was £165.0 million
(2024: £336.5 million).
The Company financial statements were approved by the Board of Directors and authorised for issue
on 4 March 2026. They were signed on its behalf by:
J Daly
C Carney
Director
Director
217
Shareholder information
Strategic report
Financial statements
Directors’ report
Company statement of changes in equity
for the year to 31 December 2025
Note
Share
capital
£m
Share
premium
£m
Own
shares
£m
Other
reserves
£m
Retained
earnings
£m
Total
£m
Total equity at 1 January 2024
291.3
777.9
(29.7)
536.0
3,467.4
5,042.9
Profit for the year
–
–
–
–
336.5
336.5
Total comprehensive income for the year
–
–
–
–
336.5
336.5
Own shares acquired
–
–
(4.0)
–
–
(4.0)
Utilisation of own shares
–
–
6.1
–
–
6.1
Cash cost of satisfying share options
–
–
–
–
(3.7)
(3.7)
Capital contribution on share-based payments
–
–
–
–
9.2
9.2
Dividends approved and paid
15
–
–
–
–
(339.4)
(339.4)
Total equity at 31 December 2024
291.3
777.9
(27.6)
536.0
3,470.0
5,047.6
Profit for the year
–
–
–
–
165.0
165.0
Total comprehensive income for the year
–
–
–
–
165.0
165.0
Own shares acquired
–
–
(3.3)
–
–
(3.3)
Utilisation of own shares
–
–
10.7
–
–
10.7
Cash cost of satisfying share options
–
–
–
–
(7.5)
(7.5)
Capital contribution on share-based payments
–
–
–
–
8.9
8.9
Dividends approved and paid
15
–
–
–
–
(330.4)
(330.4)
Total equity at 31 December 2025
291.3
777.9
(20.2)
536.0
3,306.0
4,891.0
Taylor Wimpey plc
Annual Report and Accounts 2025
218
Notes to the Company financial statements
1
Material accounting policies
The following material accounting policies have been used consistently, unless otherwise stated,
in dealing with items which are considered material.
Basis of preparation
The Company meets the definition of a qualifying entity under Financial Reporting Standard 101
(FRS 101) issued by the Financial Reporting Council. Accordingly, these Company financial statements
were prepared in accordance with FRS 101 ‘Reduced Disclosure Framework’ as issued by the Financial
Reporting Council as applied in conformity with the provisions of the Companies Act 2006 and under
the historical cost convention, except as otherwise stated below.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available
under that standard in relation to share-based payments, financial instruments, capital management,
presentation of comparative information in respect of certain assets, presentation of a cash flow
statement, standards not yet effective, impairment of assets and related party transactions.
The principal accounting policies adopted are set out below.
Going concern
The Group, which the Company heads, has prepared forecasts, including certain sensitivities, taking
into account the Principal Risks identified on pages 72 to 76. Having considered these forecasts, as
described on page 178, the Directors remain of the view that the Group’s financing arrangements and
capital structure provide both the necessary facilities and covenant headroom to enable the Group to
conduct its business for at least the next 12 months. Accordingly, the Company financial statements
have been prepared on a going concern basis.
Critical accounting judgements and key sources of estimation uncertainty
Management has not made any individual accounting judgements that are material to the Company
and does not consider there to be any key sources of estimation uncertainty.
Investments in Group undertakings
Investments are included in the balance sheet at cost less any provision for impairment. The Company
assesses investments for impairment whenever events or changes in circumstances indicate that the
carrying value of an investment may not be recoverable. If any such indication of impairment exists,
the Company makes an estimate of the recoverable amount of the investment. If the recoverable
amount is less than the value of the investment, the investment is considered to be impaired and is
written down to its recoverable amount. An impairment loss is expensed immediately. Where an
impairment loss subsequently reverses, due to a change in circumstances or in the estimates used to
determine the asset’s recoverable amount, the carrying amount of the investment is increased to the
revised estimate of its recoverable amount, so long as it does not exceed the original carrying value prior
to the impairment being recognised.
The Company values its investments in subsidiary holding companies which do not hold trading
subsidiaries based on a comparison between the net assets recoverable by the subsidiary company
and the investment held. For trading subsidiaries, or holding companies of trading subsidiaries, the
investment carrying value in the Company is assessed against the net present value of the cash flows
of the trading subsidiaries held. Where the net assets or net present value of cash flows are lower than
the investment, an impairment is recorded.
Taxation
The tax charge represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before
tax because it excludes items of income or expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible.
The Company’s liability for current tax is calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date.
Any liability or credit in respect of group relief in lieu of current tax is also calculated using corporation tax
rates that have been enacted or substantively enacted by the balance sheet date unless a different rate
(including a nil rate) has been agreed within the Group.
219
Shareholder information
Strategic report
Financial statements
Directors’ report
Notes to the Company financial statements continued
1
Material accounting policies
continued
Foreign currencies
Transactions denominated in foreign currencies are recorded in Sterling at actual rates as of the date
of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year end
are reported at the rates of exchange prevailing at the year end.
Any gain or loss arising from a change in exchange rates after the date of the transaction is included
as an exchange gain or loss in profit and loss.
Trade and other receivables
Trade and other receivables are measured at amortised cost, less any loss allowance based on
expected credit losses. The measurement of expected credit losses is based on the probability of
default and the magnitude of the loss if there is a default. The assessment of probability of default is
based on historical data adjusted for any known factors that would influence the future amount to
be received in relation to the receivable.
Trade and other payables
Trade and other payables are measured at amortised cost.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred and subsequently
measured at amortised cost.
Share-based payments
The Company issues equity-settled share-based payments to certain employees of its subsidiaries.
Equity-settled share-based payments are measured at fair value at the grant date. The fair value is
expensed on a straight-line basis over the vesting period, based on the estimate of shares that will vest.
The cost of equity-settled share-based payments granted to employees of subsidiary companies is
borne by the employing company, without recharge. As such, the Company’s investment in the
subsidiary is increased by an equivalent amount.
Own shares
The cost of the Company’s investment in its own shares, which comprise shares held in treasury
by the Company and shares held by employee benefit trusts for the purpose of funding certain of
the Company’s share option plans, is shown as a reduction in shareholders’ equity.
Dividends paid
Dividends are charged to the Company’s retained earnings reserve in the period of payment in respect
of an interim dividend, and in the period in which shareholders’ approval is obtained in respect of the
Company’s final dividend.
2
Particulars of employees
2025
Number
2024
Number
Directors
2
2
The Executive Directors received all of their remuneration, as disclosed in the Remuneration Committee
report on pages 129 to 158, from Taylor Wimpey UK Limited. This remuneration is reflective of the
Directors’ service to the Company and all its subsidiaries.
3
Auditors’ remuneration
2025
£m
2024
£m
Total audit fees
0.2
0.2
Non-audit fees
–
–
Total
0.2
0.2
A description of other non-audit services is included in Note 6 of the consolidated financial statements.
Taylor Wimpey plc
Annual Report and Accounts 2025
220
Notes to the Company financial statements continued
4
Investments in Group undertakings
Shares
£m
Cost
At 1 January 2025
7,443.3
Capital contribution relating to share-based payments
8.9
Disposals
(989.2)
At 31 December 2025
6,463.0
Provision for impairment
At 1 January 2025
(2,924.6)
Charge for the year
(0.7)
Disposals
989.2
At 31 December 2025
(1,936.1)
Carrying amount
At 31 December 2025
4,526.9
At 31 December 2024
4,518.7
The disposal in the year relates to a legacy, non-trading, entity that has been dissolved and whose
investment was fully impaired in prior years. All investments are unlisted and information about all
subsidiaries is listed on pages 223 to 231.
5
Trade and other receivables
Current
Non-current
2025
£m
2024
£m
2025
£m
2024
£m
Due from Group undertakings
828.2
855.8
67.9
64.5
Other receivables
1.6
2.1
3.4
3.5
829.8
857.9
71.3
68.0
Amounts due from Group undertakings are unsecured, repayable on demand and are predominantly
interest bearing.
6
Trade and other payables
Current
Non-current
2025
£m
2024
£m
2025
£m
2024
£m
Due to Group undertakings
817.7
811.4
–
–
Other payables
0.9
1.0
–
–
Corporation tax creditor
14.4
10.8
–
–
833.0
823.2
–
–
Amounts due to Group undertakings are unsecured, repayable on demand and are predominantly
interest bearing.
7
Bank and other loans
2025
£m
2024
£m
€100.0 million 5.08% Senior Loan Notes 2030
87.0
82.6
87.0
82.6
2025
£m
2024
£m
Amount due for settlement after one year
87.0
82.6
87.0
82.6
221
Shareholder information
Strategic report
Financial statements
Directors’ report
Notes to the Company financial statements continued
8
Share capital
2025
£m
2024
£m
Authorised:
22,200,819,176 (2024: 22,200,819,176) ordinary shares of 1p each
222.0
222.0
1,158,299,201 (2024: 1,158,299,201) deferred ordinary shares of
24p each
278.0
278.0
500.0
500.0
Number of
ordinary shares
Number of deferred
ordinary shares
£m
Issued and fully paid:
31 December 2024
3,556,985,103
1,065,566,274
291.3
31 December 2025
3,556,985,103
1,065,566,274
291.3
The Company has two classes of shares:
• Ordinary shares of 1p, each of which carries the right to one vote at general meetings of
the Company and such other rights and obligations as are set out in the Company’s Articles
of Association.
• Deferred ordinary shares of 24p, which carry no voting rights and no entitlement to any dividend.
The deferred ordinary shares were issued as part of a capital reorganisation in 2009 and have
not subsequently changed.
During the year, the Company issued nil (2024: nil) ordinary shares to satisfy option exercises.
9
Share premium
2025
£m
2024
£m
At 1 January
777.9
777.9
At 31 December
777.9
777.9
10
Own shares
2025
£m
2024
£m
Own shares
20.2
27.6
2025
Number
2024
Number
Ordinary shares held in trust and treasury for bonus, option and
performance award plans
15.7m
20.6m
During the year, Taylor Wimpey plc purchased 3.1 million of its own shares to be held in the ESOTs
(2024: 3.2 million). The market value of the shares held in the ESOTs and treasury at 31 December 2025
was £16.9 million (2024: £25.1 million) and their nominal value was £0.2 million (2024: £0.2 million).
Dividends on these shares have been waived except for a nominal aggregate amount in pence.
ESOTs are used to hold the Company’s shares which have been acquired on the market. These shares
and those held in treasury are used to meet the valid exercise of options and/or vesting of conditional
awards and/or award of shares under the Group’s share option plans.
The ESOTs’ entire holding of shares and those held in treasury at 31 December 2025 and
31 December 2024 were covered by outstanding options and conditional awards over shares
at those dates.
11
Other reserves
2025
£m
2024
£m
At 1 January
536.0
536.0
At 31 December
536.0
536.0
£499.1 million of other reserves arose on the cash box placing that occurred in June 2020 and
qualified for merger relief under Section 612 of the Companies Act 2006. Other reserves also includes
£32.4 million (2024: £32.4 million) in respect of the redemption of the Company’s shares, which is
non-distributable.
Taylor Wimpey plc
Annual Report and Accounts 2025
222
Notes to the Company financial statements continued
12
Retained earnings
Retained earnings of £3,306.0 million (2024: £3,470.0 million) includes profit for the year of
£165.0 million (2024: £336.5 million), of which £115.0 million (2024: £315.5 million) is dividends
received from subsidiaries. Included in retained earnings is £960.4 million (2024: £944.0 million),
which is not distributable.
13
Share-based payments
The Company has taken advantage of the FRS 101 disclosure exemption in relation to share-based
payments. Details of share awards granted by the Company to employees of subsidiaries, and that
remain outstanding at the year end over the Company’s shares, are set out in Note 29 of the
consolidated financial statements. The Company did not recognise any expense related to
equity-settled share-based payment transactions in the current or preceding year.
14
Contingent liabilities
The Company has, in the normal course of business, given guarantees and entered into counter-indemnities
in respect of bonds relating to the Group’s own contracts. The possibility of any outflow in settlement for
these is considered to be remote.
Provision is made for the Directors’ best estimate of known legal claims and legal actions in progress.
The Group takes legal advice as to the likelihood of success of claims and actions and no provision
is made where the Directors consider, based on that advice, that the action is unlikely to succeed.
The Company has in issue a guarantee in respect of the Taylor Wimpey Pension Scheme (TWPS),
which had an underlying IAS 19 surplus of £107.0 million at 31 December 2025 (2024: £90.2 million).
This guarantee commits the Company to ensuring that the participating subsidiary meets its obligations
under any schedule of contributions agreed with the TWPS Trustee from time to time.
15
Dividend
2025
£m
2024
£m
Proposed
Interim dividend 2025: 4.67p (2024: 4.80p) per ordinary share of 1p each
165.4
169.9
Final dividend 2025: 2.95p (2024: 4.66p) per ordinary share of 1p each
104.6
165.0
270.0
334.9
Amounts recognised as distributions to equity holders
Paid
Final dividend 2024: 4.66p (2023: 4.79p) per ordinary share of 1p each
165.0
169.5
Interim dividend 2025: 4.67p (2024: 4.80p) per ordinary share of 1p each
165.4
169.9
330.4
339.4
The Directors recommend a final dividend for the year ended 31 December 2025 of 2.95 pence per
share (2024: 4.66 pence per share) subject to shareholder approval at the Annual General Meeting, with
an equivalent final dividend charge of c.£105 million based on the number of shares in issue at the end
of the year (2024: £165.0 million). The final dividend will be paid on 15 May 2026 to all shareholders
registered at the close of business on 7 April 2026.
In accordance with IAS 10 ‘Events after the Reporting Period’, the proposed final dividend has not been
accrued as a liability at 31 December 2025.
223
Shareholder information
Strategic report
Financial statements
Directors’ report
Particulars of subsidiaries, associates and joint ventures
The entities listed below are companies incorporated in the United Kingdom and the registered office is Gate House, Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR. All of the below are 100%
subsidiaries of the Group, either directly or indirectly held by Taylor Wimpey plc, and only have ordinary share capital.
Admiral Developments Limited
Admiral Homes (Eastern) Limited
Admiral Homes Limited
Ashton Park Limited
BGS (Pentian Green) Holdings Limited
Bryad Developments Limited
Bryant Country Homes Limited
Bryant Group Services Limited
Bryant Homes Central Limited
Bryant Homes East Midlands Limited
Bryant Homes Limited
Bryant Homes North East Limited
Bryant Homes Northern Limited
Bryant Homes South West Limited
Bryant Homes Southern Limited
Bryant Properties Limited
Candlemakers (TW) Limited
Clipper Investments Limited
Compine Developments (Wootton) Limited
Dormant Nominees One Limited
Dormant Nominees Two Limited
Farrods Water Engineers Limited
Flyover House Limited
George Wimpey Limited
George Wimpey Bristol Limited
George Wimpey City Limited
George Wimpey City 2 Limited
George Wimpey East Anglia Limited
George Wimpey East London Limited
George Wimpey East Midlands Limited
George Wimpey Manchester Limited
George Wimpey Midland Limited
George Wimpey North East Limited
George Wimpey North London Limited
George Wimpey North Midlands Limited
George Wimpey North West Limited
George Wimpey North Yorkshire Limited
George Wimpey South East Limited
George Wimpey South Midlands Limited
George Wimpey South West Limited
George Wimpey South Yorkshire Limited
George Wimpey Southern Counties Limited
George Wimpey West London Limited
George Wimpey West Midlands Limited
George Wimpey West Yorkshire Limited
Globe Road Limited
Grand Union Vision Limited
Groveside Homes Limited
Hamme Construction Limited
Hanger Lane Holdings Limited
Hassall Homes (Cheshire) Limited
Hassall Homes (Mercia) Limited
Hassall Homes (Southern) Limited
Hassall Homes (Wessex) Limited
Haverhill Developments Limited
Jim 1 Limited
Jim 3 Limited
Jim 4 Limited
Jim 5 Limited
L. & A. Freeman Limited
Laing Homes Limited
Laing Land Limited
Landtrust Developments Limited
Limebrook Manor LLP
MCA Developments Limited
MCA East Limited
MCA Holdings Limited
MCA Land Limited
MCA Leicester Limited
MCA London Limited
MCA Northumbria Limited
MCA Partnership Housing Limited
MCA South West Limited
MCA West Midlands Limited
MCA Yorkshire Limited
McLean Homes Limited
McLean Homes Bristol & West Limited
McLean Homes Southern Limited
McLean TW Estates Limited
McLean TW (Chester) Limited
McLean TW (Northern) Limited
McLean TW (Southern) Limited
McLean TW (Yorkshire) Limited
McLean TW Group Limited
McLean TW Holdings Limited
McLean TW Limited
McLean TW No. 2 Limited
Melbourne Investments Limited
Pangbourne Developments Limited
Prestoplan Limited
River Farm Developments Limited
South Bristol (Ashton Park) Limited
Spinks & Denning Limited
St. Katharine By The Tower Limited
St. Katharine Haven Limited
Stone Pit Restoration Limited
Stonepit Limited
Tawnywood Developments Limited
Taylor Wimpey Capital Developments Limited
Taylor Wimpey Commercial Properties Limited
Taylor Wimpey Developments Limited
Taylor Wimpey Garage Nominees No 1 Limited
Taylor Wimpey Garage Nominees No 2 Limited
Taylor Wimpey Holdings Limited
Taylor Wimpey International Limited
Taylor Wimpey Property Company Limited
Taylor Wimpey Property Management Limited
Taylor Wimpey SH Capital Limited
Taylor Wimpey UK Limited
Thameswey Homes Limited
The Garden Village Partnership Limited
The Wilson Connolly Employee Benefit
Trust Limited
Thomas Lowe and Sons, Limited
Thomas Lowe Homes Limited
TW NCA Limited
TW Springboard Limited
Twyman Regent Limited
Valley Park Developments Limited
Whelmar (Chester) Limited
Whelmar (Lancashire) Limited
Whelmar (North Wales) Limited
Whelmar Developments Limited
Wilcon Homes Anglia Limited
Wilcon Homes Eastern Limited
Wilcon Homes Midlands Limited
Wilcon Homes Northern Limited
Wilcon Homes Southern Limited
Taylor Wimpey plc
Annual Report and Accounts 2025
224
Particulars of subsidiaries, associates and joint ventures continued
Wilcon Homes Western Limited
Wilcon Lifestyle Homes Limited
Wilfrid Homes Limited
Wilson Connolly Holdings Limited
Wilson Connolly Investments Limited
Wilson Connolly Limited
Wilson Connolly Properties Limited
Wilson Connolly Quest Limited
Wimgrove Developments Limited
Wimgrove Property Trading Limited
Wimpey Construction Developments Limited
Wimpey Construction Overseas Limited
Wimpey Corporate Services Limited
Wimpey Dormant Investments Limited
Wimpey Geotech Limited
Wimpey Group Services Limited
Wimpey Gulf Holdings Limited
The entities listed below, with the Group’s ownership share, are companies incorporated in the
United Kingdom and the registered office is Gate House, Turnpike Road, High Wycombe,
Buckinghamshire, HP12 3NR.
Company name
% Owned
Academy Central LLP
62%
Bordon Developments Holdings Limited
50%
Chobham Manor LLP
50%
Chobham Manor Property Management Limited
50%
Falcon Wharf Limited
50%
GWNW City Developments Limited
50%
Paycause Limited
66.67%
Taylor Wimpey Pension Trustees Limited
99%
Triumphdeal Limited
50%
Vumpine Limited
50%
Whitehill & Bordon Development Company BV Limited
50%
Whitehill & Bordon Development Company Phase 1a Limited
50%
Whitehill & Bordon Regeneration Company Limited
50%
Whitehill & Bordon Regeneration Company TC Limited
50%
225
Shareholder information
Strategic report
Financial statements
Directors’ report
Particulars of subsidiaries, associates and joint ventures continued
The entities listed below, with the Group’s ownership share, are companies incorporated in the United Kingdom and the registered office is Unit C, Ground Floor, Cirrus Glasgow Airport Business Park,
Marchburn Drive, Abbotsinch, Paisley, PA3 2SJ.
Company name
% Owned
Bryant Homes Scotland Limited
100%
George Wimpey East Scotland Limited
100%
George Wimpey West Scotland Limited
100%
London and Clydeside Estates Limited
100%
London and Clydeside Holdings Limited
100%
Strada Developments Limited
50%
Taylor Wimpey (General Partner) Limited
100%
Taylor Wimpey (Initial LP) Limited
100%
Taylor Wimpey Scottish Limited Partnership
100%
Whatco England Limited
100%
Wilcon Homes Scotland Limited
100%
Other entities incorporated in the United Kingdom, unless otherwise stated, and the Group’s ownership share are shown below.
Company name
% Owned
Registered office
Bishops Park Limited
50%
11 Tower View, Kings Hill, West Malling, ME19 4UY
Bishop’s Stortford North Consortium Limited
33.14%
2nd Floor, South One Castle Park, Tower Hill, Bristol, BS2 0JA
Bromley Park (Holdings) Limited
Bromley Park Limited
50%
Kent House, 14-17 Market Place, London, W1W 8AJ
Countryside 27 Limited
50%
Countryside House, The Drive, Great Warley, Brentwood, CM13 3AT
Emersons Green Urban Village Limited
54.44%
250 Aztec West, Almondsbury, Bristol, BS32 4TR
Gallagher Bathgate Limited
50%
Gallagher House, Gallagher Business Park, Warwick, CV34 6AF
Greenwich Millennium Village Limited
50%
Countryside House, The Drive, Great Warley, Brentwood, CM13 3AT
Haydon Development Company Limited
19.27%
6 Drakes Meadow, Penny Lane, Swindon, SN3 3LL
Langley Sustainable Urban Extension Limited
33.33%
One Eleven, Edmund Street, Birmingham, B3 2HJ
North Swindon Development Company Limited
28.35%
6 Drakes Meadow, Penny Lane, Swindon, SN3 3LL
Padyear Limited
50%
Second Floor, Arena Court, Crown Lane, Maidenhead, SL6 8QZ
Quedgeley Urban Village Limited
50%
250 Aztec West, Almondsbury, Bristol, BS32 4TR
St George Little Britain (No.1) Limited
St George Little Britain (No.2) Limited
50%
Berkeley House, 19 Portsmouth Road, Cobham, KT11 1JG
Taylor Wimpey de España S.A.U.
100%
Carrer del Fluvià, 1, 3ª Planta, Oficina Izq., 07009 Palma, Islas Baleares, Spain
Taylor Woodrow (Gibraltar) Limited
100%
17 Bayside Road, Gibraltar
Wisley Property Investments Limited
100%
190 Elgin Avenue, George Town, KY1-9008, Cayman Islands
Taylor Wimpey plc
Annual Report and Accounts 2025
226
Particulars of subsidiaries, associates and joint ventures continued
The following entities are Management Companies that are limited by guarantee (unless otherwise stated) and are temporary parts of the Group. All are incorporated in the United Kingdom and their assets are
not held for the benefit of the Group. The Group holds all of the issued share capital of each entity, where relevant, unless otherwise shown.
Company name
Reference
Abbey Grange Boat Lane Residents Management Company Limited
22
Acorn Grove (Fishbourne) Management Company Limited
4
Ada Gardens Residents Management Company Ltd
19
Admiral Park (Block 6) Residents Management Company Limited
45
Admiral Park (Tongham) Management Company Limited
45
Albion Lock (Sandbach) Management Company Limited
10
Alder Park Residents Management Company Limited
15
Allard Way Coventry Residents Management Company Limited
22
Alresford Down Management Company Limited
14
Alyn Meadows Management Company Limited
10
Apsham Grange (Topsham) Management Company Limited
4
Artillery Mews Resident Management Company Limited
40
Auster Place Apartments (Brightwell Lakes) Residents Management Company Limited
36
Backwell Grove Management Company Limited
18
Barham Meadows Resident Management Company Limited
36
Barker Butts Lane Management Company Limited
1
Barry Waterfront Residents Management Company Limited
4
Battersea Exchange Management Company Limited
1
Berwick Green Bristol Management Company Limited
33
Biggleswade Management Company Limited*
1
2
Billington Grove (SM) Management Company Limited
3
Bishop Stortford NPB Limited
37
Bishop Stortford NPE Ltd
37
Blackthorn Blocks 3 & 4 Valiant Fields Residents Management Company Ltd
22
Block 4 Mindenhurst (I&J) Management Company Limited
45
Block A Heatherwood (Ascot) Resident Management Company Limited
45
Block B Heatherwood (Ascot) Resident Management Company Limited
45
Block C Heatherwood (Ascot) Resident Management Company Limited
45
Block C White Land (Forum) Management Company Limited
3
Block D Heatherwood (Ascot) Resident Management Company Limited
45
Block E Heatherwood (Ascot) Resident Management Company Limited
45
Block E Regis Park (Sefter Road) Management Company Limited
4
Block F Heatherwood (Ascot) Resident Management Company Limited
45
Company name
Reference
Block F1 Canford Phase 1 Management Co Limited
14
Block F2 Canford Phase 1 Management Co Limited
14
Block G Canford Phase 1 Management Co Limited
14
Block G Heatherwood (Ascot) Resident Management Company Limited
45
Block G Primrose Gardens Management Co Limited
14
Block H Heatherwood (Ascot) Resident Management Company Limited
45
Bordon Phase 3 Management Company Limited
4
Bovingdon Grange (Herts) Resident Management Company Limited
37
Bovingdon Grange Block 1 Residents Management Company Limited
37
Bracebridge Heath Residential Management Company Limited
11
Bramcote Grange Resident Management Company Limited
16
Bramley Park Management Company Limited
1
Brantham Residential Estate Management Company Limited
1
Brightwell Lakes Residents Management Company Limited
36
Broadleaf Park (Rownhams) Management Company Limited
4
Broadway Fields Residents Management Company Limited
1
Broken Stone Road (Blackburn) Residents Management Company Limited
14
Bronze Park (Apartments) Resident Management Company Limited
2
Bronze Park Resident Management Company Limited
2
Brookvale (Dawlish) Management Company Limited
16
Brookvale Apartments (Dawlish) Management Company Limited
16
Broughton Gate (Milton Keynes) Management Company Limited
3
Bryanston Holt Management Company Limited
31
Buckingham Park (Weedon Hill) Management Company Limited
3
Buckton Fields (Northampton) Apartment Management Company Limited
15
Buckton Fields (Northampton) Estate Management Company Limited
15
Burdon Lane (Ryhope) Residents Management Company Limited
15
Canford Vale Management Company Limited
14
Capital Court Property Management Limited*
2
27
Capstone Oaks Management Company Limited
4
Castle Manor & Ashby Fields Management Company Limited
6
Chaulden Meadows Residential Management Company Limited
6
Cherrywood Gardens Residents Management Company Limited
16
227
Shareholder information
Strategic report
Financial statements
Directors’ report
Particulars of subsidiaries, associates and joint ventures continued
Company name
Reference
Cliddesdon Reach Management Company Limited
1
Clipstone Park (Leighton Buzzard) Management Company Limited
3
Clover House (Cranbrook) Management Company Limited
4
Coatham Vale and Berrymead Gardens Residents Management Company Limited
15
Coed Issa Management Company Limited
7
Colney Manor Resident Management Company Limited
2
Colston Gardens Residents Management Company Limited
11
Concept (EA) Management Company Limited
3
Coniscliffe Park Residents Management Company Limited
15
Coopers Grange (Bishops Stortford) Resident Management Company Ltd
37
Coppice Place Management Company Limited
3
Coronation Square Residents Management Company Limited
29
Cotswold View Residents Association Limited
1
Cowleaze Path Apartments Limited
18
Cromwell Place (Phase 2) Residents Management Company Limited
2
Cromwell Place Residents Management Company Limited
2
Crookham Park (Church Crookham) Management Company Ltd*
7
45
Culm Valley Park (Cullompton) Management Company Limited
4
Cwm Gelli (Blackwood) Residents Management Company Ltd
1
Dahlia View Resident Management Company Limited
14
Dale House Resident Management Company Limited
14
Dawlish View Management Company Limited
4
Diglis Water Estate Management Company Limited
1
Dunton Green Management Company (No.1) Limited
1
Dunton Green Management Company (No.2) Limited
1
Earls Court Farm Worcester Residents Management Company Limited
12
East Leeds Block 1 Residents Management Company Limited
28
East Leeds Blocks 2 & 3 Residents Management Company Limited
28
East Leeds Residents Management Company Limited
28
Eaves Green Phase 2 (Chorley) Management Company Limited
26
Edlogan Wharf Community Interest Company
1
Elgar Place Management Company Limited
1
Emberton Grange Management Company Limited
16
Etling View Drainage Residents Management Company Limited
36
Evergreens (Beaufort Park) Management Company Limited
21
Falcon Court (Westvale Park) Resident Management Company Limited
44
Company name
Reference
Forge Wood (Crawley) Management Company Limited
23
Fortibus Fields at Apsham Grange (Topsham) Management Company Limited
4
Fountains Walk Residents Management Company Limited
15
Foxwood Garden Village Residents Management Company Limited
14
Franklin Park (Stevenage) Residents Management Company Limited
37
Friars Oak (Hassocks) Residents Management Company Limited
30
Frobisher Meadows (Wakefield) Residents Management Company Limited
28
Gilden Park (Old Harlow) Resident Management Company Limited
7
Gillingham Lakes (Phase 2) Residents Management Company Limited
31
Glasdir Management Company Limited
1
Glebe Farm (Middlewich) Management Company Limited
26
Glen House Resident Management Company Limited
14
Great Hall Park Residents Association Limited
1
Greenfields Park (EA) Management Company Limited
38
Gresley Meadow Management Company Limited
13
Hadley Grange Phase 4 Residents Management Company Limited
16
Hampden Fields Residents Management Company Limited
16
Handley Chase (Sleaford) Residents Management Company Limited
11
Handley Gardens (Lancaster Avenue) Block Management Company Limited
39
Handley Gardens Management CIC
5
Hanwell Fields 3B Management Company Limited
1
Harebell Meadows and Hartburn Grange Residents Management Company Limited
14
Hartford Green Residents Management Company Bul Limited
16
Harvest Hill (Maidenhead) Management Company Limited
16
Hastings Manor (Hugglescote) Residents Management Company Limited
6
Hawthorn Block 2 Valiant Fields Residents Management Company Ltd
22
Hay Common Management Company Limited
4
Haybridge (Wells) Management Company Limited
4
Hayes Green Management Company Limited
3
Heatherwood (Ascot) Management Company Limited
45
Heritage Park Gravesend Residents Association (No.1) Limited
1
Heritage Park Gravesend Residents Association (No.2) Limited
1
Heritage Park Gravesend Residents Association (No.3) Limited
1
Heritage Park Gravesend Residents Association (No.4) Limited
1
Heritage Park Gravesend Residents Association (No.5) Limited
1
Herrington View Residents Management Company Limited
15
Taylor Wimpey plc
Annual Report and Accounts 2025
228
Particulars of subsidiaries, associates and joint ventures continued
Company name
Reference
Hertford Mill Resident Management Company Limited
5
Hethersett Residents Management Company Limited
7
Howe Park Trust
42
Humberstone Residents Estate Management Company Limited
6
Hunters Meadow Residents Association Limited
3
Jasmine Park (Whirley) Management Company Limited
1
K Reach (EA) Management Company Limited
3
KBM and Foxfields Residents Management Company Limited
15
Kentmere Place Residents Association Limited
1
Kesgrave K Management Company Limited
1
Kestrel Court (Westvale Park) Resident Management Company Limited
44
KGG (Wandsworth) Residents Management Company Limited
4
Kingsbourne (Nantwich) Community Management Company Limited
7
Kingsley Grange (Wickford) Residents Association Limited
7
Kingswood Heath (Colchester) Management Company Limited
3
Knights Reach (Dartford) (Block 11) Residents Management Company Limited
41
Knights Reach (Dartford) Residents Management Company Limited
41
Ladden Garden Village Apartments Residents Management Company Limited
16
Leawood (Management) Company Limited*
1
Lever Valley (Bolton) Residents Management Company Limited
26
Lindridge Chase Residents Management Company Limited
13
Lion Mills (EA) Management Company Limited
3
Little Furze Resident Management Company Limited
7
Longridge Farm and Greendale Park Residents Management Company Limited
15
Longshore and Shoreview Residents Management Company Limited
15
Macintosh Mills Car Park (Management) Limited
1
Maidenfields Estate Resident Management Company Ltd
16
Maize Gardens (Warfield) Management Company Ltd
45
Manor Court (Prescot) Management Company Limited
1
Manor Park Sprowston Residents Management Company Limited
7
Manor Rise Block C Management Company Limited
19
Manor View (East Grinstead) Residents Management Company Limited
19
Marske Sands And Beaconfield Rise Residents Management Company Limited
14
Mayfield Gardens Management Company Limited
3
Melin Newydd Management Company Limited
4
Melton Manor (Melton Mowbray) Residents Company Limited
6
Company name
Reference
Millbrook Place (Crewe) Residents Management Company Limited
32
Millers Brow Management Company Ltd
1
Millstone Walk Residents Management Company Limited
28
Mindenhurst I & J Management Company Limited
45
Minsmere Green Apartments Management Company Limited
4
Minsmere Green Management Company Limited
4
Mountbatten Mews (Honiton) Management Company Limited
4
Netherton Grange Resident’s Management Company Limited
3
New House Farm Mickleover Resident Management Company Limited
35
Newbridge Gardens Management Company (No 1) Limited
38
Newbridge Gardens Management Company (No 2) Limited
38
Newcastle Great Park (Estates) Limited*
3
15
Newcastle Great Park Management Company Limited*
5
15
Newland Grange (Wakefield) Residents Management Company Limited
28
NGP Management Company (Cell A) Limited*
3
15
NGP Management Company (Cell D) Limited*
3
15
NGP Management Company (Cell E) Limited*
3
15
NGP Management Company (Cell F) Limited*
3
15
NGP Management Company (Commercial) Limited*
3
15
NGP Management Company (Town Centre) Limited*
3
15
NGP Management Company Residential (Cell G) Limited*
3
15
Nightingale Park Residents Association Limited
7
North Wharf Gardens Management Company Limited
1
Northfield View Apartments Resident Management Co Ltd
36
Nunnery Fields (Management No.1) Limited
38
Nunnery Fields (Management) Limited
38
Oak Park (Cheddar) Management Company Limited
3
Oak Park (Liphook) Management Company Limited
4
Oakapple 2 Resident Management Company Limited
9
Oaklands Residents Management Company Limited
16
Ockley Park (Hassocks) (Block E) Residents Management Company Limited
19
Ockley Park (Hassocks) (Blocks A & B) Residents Management Company Limited
19
Ockley Park (Hassocks) Residents Management Company Ltd
19
Orchard Grove (Comeytrowe) Employment Area Management Company Limited
4
Orchard Grove (Comeytrowe) Management Company Limited
4
Orsett Village Residents Association Limited
7
229
Shareholder information
Strategic report
Financial statements
Directors’ report
Particulars of subsidiaries, associates and joint ventures continued
Company name
Reference
Oxney Quarter No. 1 Estate Management Company Limited
1
Pages Priory Phase Two (Leighton Buzzard) Management Company Limited
3
Parc Llandaf Management Company Limited
4
Parc Nedd Residents Association Limited
1
Park Farm (South East) Management Company Limited
17
Parklands (Woburn Two) Management Company Limited
3
Parsons Chain Residents Management Company Limited
13
Pathfinder Place (Melksham) Management Company Limited
4
Pathfinder Way (Varsity Grange H3) Resident Management Co Ltd
36
Pear Tree Apartments Residents Management Company Limited
16
Peartree Village Management Limited
8
Perryfields Management Company Limited
35
Plas Brymbo Management Company Limited
1
Poppyfields (Benwick) Residents Association Limited
1
Postmark Residents Management Company Limited
1
Primrose Gardens (Valley Park) Management Co Ltd
14
Q.Hill (EA2) Management Company Limited
7
Queen Eleanor's Heights Residents Association Limited
1
Redhill Gardens Residents Management Company Limited
1
Redhill Park Limited*
3
20
Regency Place (Shiplake) Management Company Limited
1
Regis Park (Sefter Road) Management Company Limited
4
Robin Gardens Management Company Limited
6
Romans Gate (Old Stratford) Residents Association Limited
1
Salden Place Residents Management Company Limited
2
Samphire Meadow Residents Management Company Limited
16
Saxon Park Management Company Limited
1
Seagrave Park Residents Management Company Limited
11
Seaham Garden Village Residents Management Company Limited
14
Sherdley Green Residents Management Company Limited
14
Sherford 1A Parcel 4 Management Company Ltd
3
Sherford 1A Parcel 5 Management Company Ltd
3
Sherford 1B Parcel EFGJ Management Company Limited
3
Sherford Community Land Trust Limited
46
Sherford Estate Management Company Limited
3
Shopwyke Lakes (Chichester) Management Company Limited
4
Company name
Reference
Shorncliffe Heights (Risborough Court) (Block B1) Residents Management Company Limited
41
Shorncliffe Heights (Risborough Court) (Block D) Residents Management Company Limited
41
Shorncliffe Heights (Risborough Court) (Blocks A & B4) Residents Management Company Limited
41
Showell Nurseries Management Company Limited
4
Southgate Maisonettes (27 and 28) Limited
1
Speakman Gardens Residents Association Limited
1
Squires Cross Residents Management Company Limited
13
St Augustines Place Herne Bay Management Company Limited
4
St Crispin Area H Management Company Limited
1
St Dunstans Apartment Management Company Limited*
1
St Mary View Management Company Limited
14
Stanbury View (Parklands) Management Company Limited
45
Stanhope Fields Residents Management Company Limited
28
Stanhope Gardens (Wellesley) (Block A) Residents Management Company Limited
45
Stanhope Gardens (Wellesley) (Block F) Residents Management Company Limited
45
Stanhope Gardens (Wellesley) (Block G) Residents Management Company Limited
45
Stanhope Gardens (Wellesley) (Blocks B-D) Residents Management Company Limited
45
Stoke Rise Apartments Management Company Limited
18
Stonebrooke Gardens Management Company Limited
49
Stoneridge Hall Residents Management Company Limited
15
Stortford Fields (Parcel A) Management Company Limited
47
Stortford Fields (Parcel U) Management Company Limited
37
Stortford Fields (Parcels B&C) Management Company Limited
37
Stortford Fields Apartments (Parcel 8) Residents Management Company Limited
37
Stortford Fields Apartments (Parcel U) Management Company Limited
37
Stortford Fields Estate Management Company Limited
9
Stour Valley Management Phase 1 Limited
25
Summer Downs Residents Management Company Limited
1
Sunderland House (Handley Gardens) Resident Management Company Business Unit
London Limited
39
Swingate Park (Hellingly) Residents Management Company Limited
30
Swinnow Park (Wetherby) Residents Management Company Limited
28
Telford Millennium Management Company Limited
1
Tent 1 Management Company Limited
10
Thamesview (Plots 425 to 560) Residents Association Limited
1
The Apartments at Lindridge Chase Residents Management Company Limited
13
Taylor Wimpey plc
Annual Report and Accounts 2025
230
Particulars of subsidiaries, associates and joint ventures continued
Company name
Reference
The Apartments at Valiant Fields Residents Management Company Ltd
22
The Arboretum (Haverhill) Residents Management Company Limited
36
The Asps Residents Management Company Limited
14
The Atrium (Overstone) Residents Management Company Limited
7
The Avenue Number 4 Management Company Limited
1
The Avenue Number 5 Management Company Limited
1
The Beaumont Park Management Company Limited*
1
The Breme Park (Bromsgrove) Management Company Limited
1
The Bridge Estate Management Company Limited*
6
34
The Burleigh Rise Management Company Limited*
1
The Coach Houses (Northampton) Residents Association Limited
1
The Copse (Mawsley) Management Company Limited
6
The Copse (Woodlands Chase Phase 3B) (Block B1) Residents Management Company Limited
31
The Copse (Woodlands Chase Phase 3B) (Block B2) Residents Management Company Limited
31
The Copse (Woodlands Chase Phase 3B) Residents Management Company Limited
31
The Grange at Newton Management Company Limited
3
The Grange Number One Desborough Management Company Limited
1
The Heath RMC Limited
37
The Highgate (Durham) Management Company Limited*
1
The Junction Flat Management Company Limited*
1
The Laurels (Kirby Cross) Management Company Limited
16
The Merriemont Management Company Limited*
1
The Middlefield Springs Management Company Limited
3
The Orchard (Hadham) Residents Management Company Limited
37
The Orchard (Willow Street) Management Company Limited
1
The Orchard Apartments (Hadham) Residents Management Company Limited
37
The Orchard Grove (Playground) Management Company Limited*
1
The Pennington Wharf Community Management Company Limited
7
The Quarters Quedgeley Management Company Limited
3
The Ruxley Towers Management Company Limited*
1
The Seasons Residents Association Limited
1
The Silverdale 9 Flats Management Company Limited
1
The Silverdale 9 Houses Management Company Limited
1
The Skylarks (Warfield) Management Company Ltd
45
The Spinney Residents Management Company Limited*
1
The Swan Gardens Management Company Limited*
1
Company name
Reference
The Tramworks A Management Co Ltd
21
The Tramworks B Management Co Ltd
21
The Tramworks C Management Co Ltd
21
The Tramworks D Management Co Ltd
21
The Tramworks EBA Management Co Ltd
21
The Tramworks Estate Management Co Limited
21
The Tramworks T Blocks Man Co Ltd
21
The Tramworks T2 Management Co Ltd
21
The Tramworks T3 Management Co Ltd
21
The Vale RMC Limited
37
The Weekley Wood Management Company Limited*
1
The Wharf Lane (Solihull) No.1 Management Company Limited
1
The Willowfields Management Company Limited*
1
The Willows Residents Management Company Limited
11
The Woodlands At Shevington Management Company Limited
10
The Woodway Gate Management Company No.1 Limited
1
Three Leys Community Trust
50
Tournament Park Residents Management Company Limited
22
Valley Park (Didcot) Management Company Ltd
14
Vertex Park, Emersons Green Management Company Limited
43
Vision at Meanwood Residents Management Company Limited
14
Waterside Gardens Residents Management Company Limited
13
Watton Management Company Limited*
4
24
Webheath (Redditch) Management Company Limited
3
Wellington Paddocks (Walmer) Management Company Limited
1
Westbridge Park (Auckley) Management Company Limited
38
Weston Gate Residents Management Company Limited
37
Whalley Road (Barrow) Management Company Limited
7
White House Farm (Emersons Green) Management Company Limited
4
White Land (Forum) Management Company Limited
3
Whitehill & Bordon Town Centre Estate Management Company Limited
1
Whitehouse Farm Apartments (Emersons Green) Management Company Limited
16
Whiteley Meadows Management Company Limited
44
Willow Lake (Bletchley One) Management Company Limited
3
Willow Lake (Bletchley Two) Management Company Limited
3
Willowcroft (SM) Management Company Limited
6
231
Shareholder information
Strategic report
Financial statements
Directors’ report
Particulars of subsidiaries, associates and joint ventures continued
Company name
Reference
Windermere Grange Residents Management Company Limited
13
Winnington Village Community Management Company Limited
10
Woodlands (South Marston) Management Company Limited
48
Woodside Vale (Leeds) Residents Management Company Limited
14
Wool Gardens (Crewkerne) Management Company Limited
4
Wootton Meadows Residents Association Limited
1
Worlebury House Apartments Residents Management Company Limited
18
Woven Oaks Resident Management Company Limited
13
Wrexham Road Garden Village Management Company Limited
7
Wyrley View Residents Management Company Limited
22
Wyvern Place Resident Management Company Limited
16
* Private Limited Company.
1 60% ownership.
2 17.2% ownership.
3 50% ownership.
4 33.3% ownership.
5 11.11% ownership.
6 18.4% ownership.
7
Group representatives on Board only.
Reference
Registered address
1
Gate House, Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR
2
Newton House, 2 Sark Drive, Newton Leys, Milton Keynes, Buckinghamshire, MK3 5SD
3
Queensway House, 11 Queensway, New Milton, Hampshire, BH25 5NR
4
Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY
5
1 London Road, Brentwood, Essex, CM14 4QP
6
2 Hills Road, Cambridge, Cambridgeshire, CB2 1JP
7
RMG House, Essex Road, Hoddesdon, Hertfordshire, EN11 0DR
8
Countryside House, The Drive, Great Warley, Brentwood, Essex, CM13 3AT
9
Gateway House, 10 Coopers Way, Southend-on-Sea, Essex, SS2 5TE
10
Chiltern House, 72-74 King Edward Street, Macclesfield, Cheshire, SK10 1AT
11
Unit 2, The Osiers Business Centre, Laversall Way, Leicester, LE19 1DX
12
Redrow House, St. Davids Park, Ewloe, Flintshire, CH5 3RX
13
Second Floor, Fore 2, Fore Business Park, Solihull, B90 4SS
14
Unit 7, Portal Business Park, Eaton Lane, Tarporley, Cheshire, CW6 9DL
15
Cheviot House, Beaminster Way, Newcastle upon Tyne, NE3 2ER
16
Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN
Reference
Registered address
17
Foundation House, Coach & Horses Passage, Tunbridge Wells, TN2 5NP
18
730 Aztec West, Almondsbury, Bristol, BS32 4UE
19
Victoria House, 178-180 Fleet Road, Fleet, Hampshire, GU51 4DA
20
5 Market Yard Mews, 194-204 Bermondsey Street, London, SE1 3TQ
21
Suite 35, Interchange Business Centre, Howard Way, Newport Pagnell, MK16 9PY
22
Unit 2, Tournament Court, Edgehill Drive, Warwick, Warwickshire, CV34 6LG
23
Unit 8, The Forum, Minerva Business Park, Peterborough, PE2 6FT
24
11th Floor, Two Snow Hill, Birmingham, B4 6WR
25
13a, Building Two, Canonbury Yard, 190 New North Road, London, N1 7BJ
26
1 Lumsdale Road, Stretford, Manchester, M32 0UT
27
28 Alexandra Terrace, Exmouth, Devon, EX8 1BD
28
Sandpiper House, Peel Avenue, Calder Park, Wakefield, WF2 7UA
29
13b St. George Wharf, London, SW8 2LE
30
The Arc, Springfield Drive, Leatherhead, Surrey, KT22 7LP
31
Colvedene Court, Wessex Way, Colden Common, Winchester, SO21 1WP
32
Washington House, Birchwood Park Avenue, Warrington, WA3 6GR
33
1st Floor, 2540 The Quadrant, Aztec West, Almondsbury, Bristol, BS32 4AQ
34
Prologis House, Blythe Gate, Blythe Valley Park, Solihull, B90 8AH
35
2 Trinity Court, Broadlands, Wolverhampton, WV10 6UH
36
Castle House, Kempson Way, Bury St. Edmunds, Suffolk, IP32 7AR
37
The Dock, Station Road, Kings Langley, WD4 8LZ
38
95 London Road, Croydon, CR0 2RF
39
First Floor, Unit 1, Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, WD6 1JD
40
Suite 4, 3rd Floor Vantage House, 6-7 Claydons Lane, Rayleigh, SS6 7UP
41
Weald Court, 103 Tonbridge Road, Hildenborough, Tonbridge, TN11 9HL
42
134 Edmund Street, Birmingham, B3 2ES
43
250 Aztec West, Park Avenue, Bristol, BS32 4TR
44
Homer House, 8 Homer Road, Solihull, West Midlands, B91 3QQ
45
17 Bartley Wood Business Park, Bartley Way, Hook, Hampshire, RG27 9XA
46
Follaton House, Plymouth Road, Totnes, Devon, TQ9 5NE
47
Building 2 Imperial Place, Maxwell Road, Borehamwood, Hertfordshire, WD6 1JN
48
11 Tower View Kings Hill, West Malling, Kent, ME19 4UY
49
Suite 2b, Carvers Warehouse, 77 Dale Street, Manchester, M1 2HG
50
33 Vicarage Lane, London, E6 6DQ
Taylor Wimpey plc
Annual Report and Accounts 2025
232
Five year review (unaudited)
2025
£m
2024
£m
2023
£m
2022
£m
2021
£m
Revenue
3,844.6
3,401.2
3,514.5
4,419.9
4,284.9
Profit on ordinary activities before financing
174.7
333.9
467.8
827.5
698.2
Adjust for: Share of results of joint ventures
2.1
(15.9)
2.4
15.9
5.4
Adjust for: Exceptional items
243.8
98.2
–
80.0
125.0
Adjusted operating profit
420.6
416.2
470.2
923.4
828.6
Net finance (costs)/income excluding
exceptional items
(26.4)
2.3
3.6
(15.5)
(24.0)
Profit for the financial year before
taxation and exceptional items
394.2
418.5
473.8
907.9
804.6
Exceptional items
(247.7)
(98.2)
–
(80.0)
(125.0)
Taxation charge including taxation
on exceptional items
(46.1)
(100.7)
(124.8)
(184.3)
(124.1)
Profit for the financial year
100.4
219.6
349.0
643.6
555.5
Balance sheet
Intangible assets
2.7
1.5
2.6
4.2
6.6
Property, plant and equipment
23.1
21.9
22.0
17.3
21.7
Right-of-use assets
34.6
35.9
37.8
26.3
26.5
Interests in joint ventures
26.6
26.9
70.5
74.0
85.4
Other financial assets
11.3
10.8
10.3
10.0
10.0
Non-current trade and other receivables
26.7
14.9
28.1
12.2
27.5
Non-current assets (excluding tax)
125.0
111.9
171.3
144.0
177.7
Inventories
5,271.4
5,376.6
5,169.6
5,169.6
4,945.7
Other current assets
(excluding tax and cash)
205.6
130.4
124.4
191.2
168.2
Trade and other payables
excluding land creditors
(670.3)
(728.0)
(691.6)
(735.8)
(587.7)
Land creditors
(296.4)
(355.9)
(301.2)
(395.0)
(314.2)
Lease liabilities
(11.7)
(10.4)
(8.8)
(7.3)
(7.0)
Provisions
(211.1)
(161.7)
(124.9)
(106.7)
(125.4)
Net current assets
(excluding tax and net cash)
4,287.5
4,251.0
4,167.5
4,116.0
4,079.6
2025
£m
2024
£m
2023
£m
2022
£m
2021
£m
Trade and other payables
excluding land creditors
(48.9)
(78.7)
(80.9)
(76.7)
(137.1)
Land creditors
(226.1)
(272.0)
(214.9)
(330.6)
(492.2)
Retirement benefit obligations
(18.1)
(22.2)
(26.5)
(29.9)
(37.3)
Lease liabilities
(25.3)
(28.0)
(31.0)
(19.7)
(20.4)
Provisions
(281.0)
(145.0)
(161.8)
(183.6)
(119.7)
Non-current liabilities (excluding debt)
(599.4)
(545.9)
(515.1)
(640.5)
(806.7)
Cash and cash equivalents
429.6
647.4
764.9
952.3
921.0
Bank and other loans
(87.0)
(82.6)
(87.0)
(88.5)
(84.0)
Taxation balances
31.1
23.4
21.8
18.8
26.4
Basic net assets
4,186.8
4,405.2
4,523.4
4,502.1
4,314.0
Statistics
Basic earnings per share
2.8p
6.2p
9.9p
18.1p
15.3p
Adjusted basic earnings per share
8.0p
8.4p
9.9p
19.8p
18.0p
Tangible net assets per share
117.6p
123.8p
127.1p
126.5p
118.1p
Dividends paid (pence per share)
9.33
9.59
9.57
9.06
8.28
Number of ordinary shares in issue
at the year end (millions)
3,557.0
3,557.0
3,557.0
3,557.0
3,648.6
UK short term landbank (plots)
76,772
78,626
80,323
82,830
85,376
UK average selling price (£000)
335
319
324
313
300
UK completions (homes including JVs)
10,735
10,089
10,438
13,773
14,087
Notice of Annual General Meeting
Dear shareholder,
Annual General Meeting (AGM)
The 2026 AGM of Taylor Wimpey plc (the Company) will be held in the Garden Suite at the Crowne
Plaza Gerrards Cross, Oxford Road, Beaconsfield, HP9 2XE on Tuesday 28 April 2026 at 10:30am.
Attending the AGM
If you wish to attend and vote at the AGM in person, please bring your notice of availability with you.
It will help to authenticate your right to attend, speak and vote, and will help us to register your
attendance without delay.
For the safety and comfort of those attending the AGM, large bags, cameras, recording equipment
and similar items will not be allowed into the building and, in the interests of security, by attending the
AGM you agree to be searched, upon request, together with any bags and other possessions.
There is wheelchair access to the venue for shareholders who require it or those with reduced mobility.
However, where required, attendees are strongly advised to bring their own carers to assist with their
general mobility around the venue. Directions to the venue can be found on the reverse of your notice
of availability.
Light refreshments comprising of tea, coffee and pastries will be available from 9:30am and after the
end of the AGM.
How to vote
If you would like to vote on the resolutions in this Notice of Meeting but cannot attend the AGM
in person, or prefer to register your vote in advance, please register your proxy vote online at
https//uk.investorcentre.mpms.mufg.com or via the Investor Centre app. In order for your
proxy vote to count, our Registrar must receive your proxy form no later than 10:30am on
Friday 24 April 2026. If you would like a proxy form, please contact our Registrar via email at
shareholderenquiries@cm.mpms.mufg.com or on +44 (0)371 664 0300 and they will send one
in the mail for you to complete and return. Calls are charged at the standard geographic rate and
will vary by provider. Calls outside the United Kingdom will be charged at the applicable international
rate. Lines are open between 9:00am and 5:30pm, Monday to Friday excluding public holidays in
England and Wales.
If you are a CREST member, register your vote through the CREST system by completing and
transmitting a CREST proxy instruction as described in the procedural notes on pages 242 and 243.
If you are an institutional investor, you may also be able to appoint a proxy electronically via the
Proxymity platform, a process which has been agreed by the Company and approved by the
Registrar. For further information regarding Proxymity, please go to www.proxymity.io.
Shareholder questions
We recommend that shareholders pre-register their questions in advance of the AGM, especially
if they are unable to attend in person. Shareholders are invited to submit questions by email to
CoSec@taylorwimpey.com by 10:30am on Friday 24 April 2026. The Board will endeavour to answer
pre-registered questions during the AGM. The answers provided will be made available on the
Company’s website as soon as practicable after the AGM.
Should shareholders have further questions on the answers given to a question at the AGM, they may
submit follow-up questions by email to CoSec@taylorwimpey.com.
Recommendation
Your Directors are of the opinion that the resolutions are in the best interests of the Company and its
shareholders as a whole and recommend that you vote in favour of them. Each Director will be doing
so in respect of their own beneficial shareholdings.
Yours faithfully,
Ishaq Kayani
Group General Counsel and Company Secretary
This Notice of Meeting is important and requires your immediate attention. If you are in any doubt as
to the action you should take, you are recommended to seek your own financial advice immediately from
a stockbroker, solicitor, bank manager, accountant, or other independent financial adviser authorised under
the Financial Services and Markets Act 2000.
If you have sold or otherwise transferred all of your shares in Taylor Wimpey plc, please pass this document
together with the accompanying documents to the purchaser or transferee, or to the person who arranged the
sale or transfer so they can pass these documents to the person who now holds the shares. If you have sold or
transferred part only of your holding of shares in the Company, please consult the person who arranged the sale
or transfer.
233
Shareholder information
Strategic report
Directors’ report
Financial statements
Notice of Annual General Meeting continued
Notice of AGM
Notice is hereby given of the ninety-first AGM of the Company to be held on
Tuesday 28 April 2026 at 10:30am in the Garden Suite at the Crowne Plaza Gerrards Cross,
Oxford Road, Beaconsfield, HP9 2XE for the purposes set out below.
Ordinary resolutions:
1.
To receive the Directors’ Report, Strategic Report, Directors’ Remuneration Report, Independent
Auditors’ Report and Financial Statements for the year ended 31 December 2025.
2.
That the Directors’ Remuneration Report for the year ended 31 December 2025, as set out on
pages 129 to 158 of the Annual Report and Accounts for the financial year ended 31 December
2025, be approved in accordance with Section 439 of the Companies Act 2006.
3.
That the Directors’ Remuneration Policy, the full text of which is set out on pages 141 to 146
of the Annual Report and Accounts for the financial year ended 31 December 2025, be approved
in accordance with Section 439A of the Companies Act 2006, to take effect from the date of
this AGM.
4.
a.
That the Taylor Wimpey Performance Share Plan 2026 (PSP), summarised in Appendix 1 to this
Notice of Meeting and the rules of which are produced to this meeting and for the purposes of
identification initialled by the Chair, be approved and the Board be authorised to do all such acts
and things necessary or desirable to establish the PSP; and
b.
That the Board be authorised to adopt further plans based on the PSP but modified to take
account of local tax, exchange control or securities laws in overseas territories, provided that
any shares made available under such further plans are treated as counting against the limits
on individual or overall participation in the PSP.
5.
To declare due and payable on 15 May 2026 a final dividend of 2.95 pence per ordinary share of
the Company for the year ended 31 December 2025 to shareholders on the register at close of
business on 7 April 2026.
6.
To re-elect as a Director, Robert Noel.
7.
To re-elect as a Director, Jennie Daly CBE.
8.
To re-elect as a Director, Chris Carney.
9.
To re-elect as a Director, Lord Jitesh Gadhia.
10.
To re-elect as a Director, Irene Dorner.
11.
To re-elect as a Director, Scilla Grimble.
12.
To re-elect as a Director, Mark Castle.
13.
To re-elect as a Director, Clodagh Moriarty.
14.
To re-elect as a Director, Martyn Coffey.
15.
To re-appoint PricewaterhouseCoopers LLP (PwC) as external Auditors of the Company,
to hold office until the conclusion of the next general meeting at which accounts are laid before
the Company.
16.
Subject to the passing of resolution 15, to authorise the Audit Committee to determine the
remuneration of the external Auditors on behalf of the Board.
17.
That in accordance with Sections 366 and 367 of the Companies Act 2006, the Company and
all companies which are its subsidiaries when this resolution is passed are authorised to:
a.
make political donations to political parties and/or independent election candidates not
exceeding £250,000 in aggregate;
b.
make political donations to political organisations other than political parties not exceeding
£250,000 in aggregate; and
c.
incur political expenditure not exceeding £250,000 in aggregate, during the period beginning
with the date of passing this resolution and the conclusion of the next AGM of the Company.
For the purposes of this resolution the terms ‘political donations’, ‘political parties’, ‘independent
election candidates’, ‘political organisations’ and ‘political expenditure’ have the meanings given by
Sections 363 to 365 of the Companies Act 2006.
Taylor Wimpey plc
Annual Report and Accounts 2025
234
Notice of Annual General Meeting continued
18.
That the Board be generally and unconditionally authorised to allot shares in the Company and to
grant rights to subscribe for or convert any security into shares in the Company:
a.
up to a nominal amount of £11,823,717 (such amount to be reduced by any allotments or
grants made under paragraph b below, in excess of £11,823,717); and
b.
comprising equity securities (as defined in the Companies Act 2006) up to a nominal amount of
£23,647,433 (such amount to be reduced by any allotments or grants made under paragraph
a above) in connection with an offer by way of a rights issue:
i.
to ordinary shareholders in proportion (as nearly as may be practicable) to their existing
holdings; and
ii.
to holders of other equity securities as required by the rights of those securities or as the
Board otherwise considers necessary, and so the Board may impose any limits or
restrictions and make any arrangements which it considers necessary or appropriate to
deal with treasury shares, fractional entitlements, record dates, legal, regulatory or practical
problems in, or under the laws of, any territory or any other matter, such authorities to apply
until the end of the next AGM of the Company (or, if earlier, until the close of business on
30 June 2027) but, in each case, so that the Company may make offers and enter into
agreements during this period which would, or might, require shares to be allotted or rights
to subscribe for or convert securities into shares to be granted after the authority ends; and
the Board may allot shares or grant rights to subscribe for or convert securities into shares
under any such offer or agreement as if the authority had not ended.
Special resolutions:
19.
That if resolution 18 is passed, the Board be given power to allot equity securities (as defined in the
Companies Act 2006) for cash under the authority given by that resolution and/or to sell ordinary
shares held by the Company as treasury shares for cash as if Section 561 of the Companies Act
2006 did not apply to any such allotment or sale, such power to be limited:
a.
to the allotment of equity securities and sale of treasury shares in connection with an offer of,
or invitation to apply for, equity securities (but in the case of the authority granted under
paragraph b of resolution 18, by way of a rights issue only):
i.
to ordinary shareholders in proportion (as nearly as practicable) to their existing holdings; and
ii.
to holders of other equity securities, as required by the rights of those securities, or as the
Board otherwise considers necessary,
and so that the Board may impose any limits or restrictions and make any arrangements which
it considers necessary or appropriate to deal with treasury shares, fractional entitlements, record
dates, legal, regulatory or practical problems in, or under the laws of, any territory or any other
matters; and
b.
in the case of the authority granted under paragraph a of resolution 18 and/or in the case of any
sale of treasury shares, to the allotment of equity securities or sale of treasury shares (otherwise
than under paragraph a above) up to a nominal amount of £3,547,115; and
c.
to the allotment of equity securities or sale of treasury shares (otherwise than under paragraph
a or paragraph b above) up to a nominal amount equal to 20% of any allotment of equity
securities or sale of treasury shares from time to time under paragraph b above, such authority
to be used only for the purposes of making a follow-on offer which the Board of the Company
determines to be of a kind contemplated by paragraph 3 of Part 2B of the Statement of
Principles on Disapplying Pre-Emption Rights most recently published by the Pre-Emption
Group prior to the date of this Notice of Meeting.
Such power to apply until the end of the next AGM of the Company (or, if earlier, until the close of
business on 30 June 2027) but, in each case, during this period the Company may make offers,
and enter into agreements, which would, or might, require equity securities to be allotted (and
treasury shares to be sold) after the power ends and the Board may allot equity securities
(and sell treasury shares) under any such offer or agreement as if the power had not ended.
235
Shareholder information
Strategic report
Directors’ report
Financial statements
Notice of Annual General Meeting continued
20.
That if resolution 18 is passed, the Board be given the power in addition to any power granted
under resolution 19 to allot equity securities (as defined in the Companies Act 2006) for cash under
the authority granted under paragraph a of resolution 18 and/or to sell ordinary shares held by the
Company as treasury shares for cash as if Section 561 of the Companies Act 2006 did not apply
to any such allotment or sale, such power to be:
a.
limited to the allotment of equity securities or sale of treasury shares up to a nominal amount of
£3,547,115; such authority to be used only for the purposes of financing (or refinancing, if the
authority is to be used within 12 months after the original transaction) a transaction which
the Board determines to be either an acquisition or a specified capital investment of a kind
contemplated by the Statement of Principles on Disapplying Pre-Emption Rights most recently
published by the Pre-Emption Group prior to the date of this Notice of Meeting; and
b.
limited to the allotment of equity securities or sale of shares (otherwise than under paragraph
a above) up to a nominal amount equal to 20% of any allotment of equity securities or sale of
treasury shares from time to time under paragraph a above, such authority to be used only
for the purposes of making a follow-on offer which the Board determines to be of a kind
contemplated by paragraph 3 of Part 2B of the Statement of Principles on Disapplying
Pre-Emption Rights most recently published by the Pre-Emption Group prior to the date of
this Notice of Meeting.
Such power to apply until the end of the next AGM of the Company (or, if earlier, until the close of
business on 30 June 2027) but, in each case, during this period the Company may make offers,
and enter into agreements, which would, or might, require equity securities to be allotted
(and treasury shares to be sold) after the power ends and the Board may allot equity securities
(and sell treasury shares) under any such offer or agreement as if the authority had not ended.
21.
That the Company be authorised for the purposes of Section 701 of the Companies Act 2006
to make market purchases (within the meaning of Section 693(4) of the Companies Act 2006)
of the ordinary shares of 1 pence each of the Company (ordinary shares), provided that:
a.
the maximum number of ordinary shares hereby authorised to be purchased shall be
354,711,500;
b.
the minimum price (exclusive of expenses) which may be paid for ordinary shares is 1 pence
per ordinary share;
c.
the maximum price (exclusive of expenses) which may be paid for an ordinary share is the
highest of:
i.
an amount equal to 105% of the average of the middle market quotations for an ordinary
share (as derived from the London Stock Exchange Daily Official List) for the five business
days immediately preceding the date on which such ordinary share is purchased; and
ii.
the higher of the price of the last independent trade and the highest independent bid on the
trading venues where the purchase is carried out;
d.
the authority hereby conferred shall expire at the earlier of the conclusion of the next AGM of the
Company and 30 June 2027 unless such authority is renewed prior to such time; and
e.
the Company may make contracts to purchase ordinary shares under the authority hereby
conferred prior to the expiry of such authority which will or may be executed wholly or partly
after the expiry of such authority and may purchase ordinary shares in pursuance of any such
contracts, as if the authority conferred by this resolution had not expired.
22.
That a general meeting other than an AGM of the Company may continue to be called on not less
than 14 clear days’ notice.
By order of the Board
Ishaq Kayani
Group General Counsel and Company Secretary
Taylor Wimpey plc
Gate House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3NR
Registered in England and Wales No. 296805
4 March 2026
Taylor Wimpey plc
Annual Report and Accounts 2025
236
Notice of Annual General Meeting continued
Explanatory notes to the resolutions
The notes on the following pages explain the proposed resolutions.
Resolutions 1 to 18 are proposed as ordinary resolutions. This means that for each of those resolutions
to be passed, more than half of the vote cast must be in favour of the resolution. Resolutions 19 to 22
are proposed as special resolutions. This means that for each of those resolutions to be passed,
at least three-quarters of the votes cast must be in favour of the resolution.
Voting on the resolutions at the AGM will be by way of a poll, rather than on a show of hands. This is
a more transparent method of voting as shareholder votes are counted according to the number of
shares held and this will ensure an exact and definitive result.
Ordinary resolutions
Ordinary resolutions require more than half of the votes cast to be in favour.
Resolution 1: To receive the Annual Report and Financial Statements
English company law requires the Directors to lay the Financial Statements of the Company for the year
ended 31 December 2025 and the reports of the Directors, namely the Strategic Report, Directors’
Report, Directors’ Remuneration Report, and Auditors’ Report (the Annual Report), before a general
meeting of the Company.
Resolutions 2 and 3: Approval of the Directors’ Remuneration Report and the Directors’
Remuneration Policy
The Remuneration Committee of the Board (the Committee) is seeking shareholders’ approval of the
Directors’ Remuneration Report in resolution 2 which will be proposed as an ordinary resolution.
The Directors are required to prepare the Directors’ Remuneration Report, comprising an annual
report detailing the remuneration of the Directors, a statement by the Chair of the Committee and the
Remuneration at a glance section. The Company is required to seek shareholders’ approval in respect
of the contents of this Directors’ Remuneration Report on an annual basis. This vote on the Directors’
Remuneration Report is an advisory one only.
The shareholders are separately asked to approve the Directors’ Remuneration Policy which is set
out on pages 141 to 147 of the Annual Report. It is intended that this will take effect immediately after
the AGM and will replace the existing policy that was approved by shareholders in 2023 which is due
to expire at the 2026 AGM. It is anticipated that the Directors’ Remuneration Policy will be in force for
three years.
Resolution 4: Performance Share Plan Rules
The PSP is a discretionary Performance Share Plan designed to incentivise and retain key employees.
A copy of the PSP rules will be available for inspection by shareholders on the National Storage
Mechanism (accessible at www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-
storage-mechanism) from the date of publication of this Notice of Meeting and at the place of the
AGM from 15 minutes prior to its commencement until its conclusion.
Resolution 5: To declare a final dividend
The Directors recommend the payment of a final dividend of 2.95 pence per ordinary share in respect of
the year ended 31 December 2025. If approved at the AGM, the dividend will be paid on 15 May 2026
to shareholders who are on the Register of Members at the close of business on 7 April 2026.
Dividend Re-Investment Plan
Subject to shareholders approving the dividend as set out in resolution 5 at the AGM scheduled for
28 April 2026, the Company will be offering residents in the United Kingdom, Channel Islands or the
Isle of Man a Dividend Re-Investment Plan (DRIP). The DRIP is provided and administered by the DRIP
plan administrator, MUFG Corporate Markets Trustees (UK) Limited, which is authorised and regulated
by the Financial Conduct Authority (FCA). The DRIP offers shareholders the opportunity to elect to invest
cash dividends received on their ordinary shares, in purchasing further ordinary shares of the Company.
These shares would be bought in the market on competitive dealing terms.
The DRIP will operate automatically in respect of the final dividend for 2025 (unless varied beforehand by
shareholders) and all future dividends, including any special dividends, until such time as you withdraw
from the DRIP or the DRIP is suspended or terminated in accordance with its terms and conditions.
Shareholders are again reminded to check their position with regard to any dividend mandates that
are in place, should you wish to either participate in the DRIP or to discontinue or vary any participation,
as existing mandates will apply to all dividend payments (including special dividends) unless or
until revoked.
237
Shareholder information
Strategic report
Directors’ report
Financial statements
Notice of Annual General Meeting continued
CREST
For shares held in uncertificated form (CREST), please note that elections apply only to one dividend
and a fresh election must be made, via CREST, for each dividend.
Full details of the terms and conditions of the DRIP and the actions required to make or revoke
an election, both in respect of ordinary dividends (i.e. in this case, the 2025 final dividend) and any
special dividends, are available at https://uk.investorcentre.mpms.mufg.com or on request from
the Registrar, MUFG Corporate Markets, Central Square, 29 Wellington Street, Leeds, LS1 4DL,
email: drip.enquiries@cm.mpms.mufg.com or call +44 (0)371 664 0381. Calls are charged at the
standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged
at the applicable international rate.
The Registrar is open between 9:00am and 5:30pm, Monday to Friday excluding public holidays in
England and Wales.
Resolutions 6-14: Re-election of Directors
In accordance with the 2024 Code which states that all directors should be subject to annual election
by shareholders, the Board has resolved that all Directors of the Company will retire and, being eligible,
offer themselves for re-election by shareholders at the AGM.
Details of the Directors’ service contracts, remuneration, and interests in the Company’s shares and
other securities are given in the Directors’ Remuneration Report to shareholders on pages 146,148
and 153 of the Annual Report. Full biographical information concerning each Director can be found
on pages 92 to 94 of the Annual Report.
The following summary information is given in support of the Board’s proposal for each Director standing
for re-election.
Robert Noel – offers himself for re-election
Robert has been a Non Executive Director since 1 October 2019; the Company’s Senior Independent
Director between 21 April 2020 and 27 April 2023; and the Board’s Employee Champion between
26 April 2022 and 27 April 2023. Robert formally assumed the position of Chair on 27 April 2023.
The Board is satisfied that he is independent in character and judgement in applying his expertise in
chairing meetings of the Board and of the Nomination and Governance Committee and when acting
as a member of the Remuneration Committee, and that he will be able to allocate sufficient time to the
Company to discharge his responsibilities effectively. Robert has experience as a chair and as a chief
executive of listed companies and has particularly deep property expertise which assists the Board in
assessing large scale land opportunities.
Jennie Daly CBE – offers herself for re-election
Jennie has been Chief Executive since 26 April 2022 having previously been the Group Operations
Director since 20 April 2018.
Chris Carney – offers himself for re-election
Chris has been the Group Finance Director since 20 April 2018.
Lord Jitesh Gadhia – offers himself for re-election
Jitesh has been a Non Executive Director since 1 March 2021 and was appointed as the Company’s
Senior Independent Director with effect from 1 December 2024. The Board is satisfied that he is
independent in character and judgement in applying his expertise at meetings of the Board, the
Remuneration Committee (of which he was appointed Chair on 26 April 2022) and the Nomination
and Governance Committee, and that he will be able to allocate sufficient time to the Company to
discharge his responsibilities effectively, including as Senior Independent Director. Jitesh’s executive and
non executive experience and involvement in public affairs gives an additional perspective to the Board
dynamic. He has extensive remuneration committee experience and serves as chair of the remuneration
committee of Rolls-Royce Holdings plc.
Taylor Wimpey plc
Annual Report and Accounts 2025
238
Notice of Annual General Meeting continued
Irene Dorner – offers herself for re-election
Irene was appointed as a Non Executive Director and Chair-Designate on 1 December 2019.
Irene was the Company’s Chair and Chair of the Nomination and Governance Committee from
26 February 2020 to 27 April 2023. Irene has strong leadership skills, coupled with deep commercial
experience. On standing down as Chair in 2023, and in accordance with the 2024 Code, she became
a non-independent Non Executive Director and continues to provide an effective contribution to the
Board and the Nomination and Governance Committee, and the further development of the Group’s
strong cultural principles.
Scilla Grimble – offers herself for re-election
Scilla has been a Non Executive Director since 1 March 2021 and on 1 September 2024 was appointed
Chair of the Audit Committee. The Board is satisfied that she is independent in character and judgement
in applying her expertise at meetings of the Board, the Audit Committee and the Nomination and
Governance Committee, and that she will be able to allocate sufficient time to the Company to
discharge her responsibilities effectively. Scilla has significant financial, risk, technology and property
experience. Scilla has detailed knowledge and experience of financial reporting for listed companies
and therefore is considered by the Board to have the relevant skills and experience to chair the
Audit Committee.
Mark Castle – offers himself for re-election
Mark was appointed as a Non Executive Director on 1 June 2022, and was appointed as the Board’s
Employee Champion on 27 April 2023. The Board is satisfied that he is independent in character and
judgement in applying his expertise at meetings of the Board, the Audit Committee, the Remuneration
Committee and the Nomination and Governance Committee, and that he will be able to allocate
sufficient time to the Company to discharge his responsibilities effectively. Mark brings significant
operational experience in all aspects of the construction sector, including as chief operating officer
of Mace Group Limited until 2021.
Clodagh Moriarty – offers herself for re-election
Clodagh was appointed as a Non Executive Director on 1 June 2022. The Board is satisfied that
she is independent in character and judgement in applying her expertise at meetings of the Board,
the Remuneration Committee, and the Nomination and Governance Committee, and that she will be
able to allocate sufficient time to the Company to discharge her responsibilities effectively. Clodagh has
extensive customer-focused experience across retail, strategy, digital transformation and e-commerce.
Martyn Coffey – offers himself for re-election
Martyn was appointed as a Non Executive Director on 1 December 2024. The Board is satisfied
that he is independent in character and judgement in applying his expertise at meetings of the Board,
the Audit Committee and the Nomination and Governance Committee, and that he will be able to
allocate sufficient time to the Company to discharge his responsibilities effectively. Martyn brings a
wealth of experience in the area of manufacturing for the building industry and of supply chains, having
previously been the CEO of Marshalls Plc for over 10 years and a non executive director of Eurocell Plc
for eight years.
The Board confirms that each of the above Directors has during 2025 been subject to formal
performance evaluation, details of which are set out in the Nomination and Governance Committee
Report on pages 116 and 117, and that each continues to demonstrate commitment and is an effective
member of the Board who is able to devote sufficient time in line with the 2024 Code to fulfil their role
and duties.
Resolution 15: Re-appointment of PwC as external Auditors of the Company
The Company is required to appoint external Auditors at each general meeting at which accounts
are laid before the shareholders. It is therefore proposed that the external Auditors are appointed from
the conclusion of the 2026 AGM until the conclusion of the next general meeting at which accounts
are laid before shareholders. The Board recommends the re-appointment of PwC as the Company’s
external Auditors.
Resolution 16: Authorisation of the Audit Committee to agree on behalf of the Board the
remuneration of PwC as external Auditors
The Board seeks shareholders’ authority for the Audit Committee to determine on behalf of the Board
the remuneration of the external Auditors for their services. The Board has adopted a procedure
governing the appointment of the external Auditors to carry out non-audit services, details of which are
given in the Audit Committee report. Details of non-audit services performed by the external Auditors in
2025 are given in Note 6 on page 188 of the Annual Report.
239
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Strategic report
Directors’ report
Financial statements
Notice of Annual General Meeting continued
Resolution 17: Authority to make political donations
In order to comply with its obligations under the Companies Act 2006 and to avoid any inadvertent
infringement of that Act, the Board wishes to renew its existing authority for a general level of political
donation and/or expenditure. Resolution 17 seeks to renew the existing authority for the Company to
make political donations and incur political expenditure.
The Companies Act 2006 requires this authority to be divided into three heads (as set out in resolution
17) with a separate amount specified as permitted for each. An amount not exceeding £250,000 for
each head of the authority has been proposed. In accordance with the Companies Act 2006, resolution
17 extends approval to all of the Company’s subsidiaries.
This authority will expire at the conclusion of the next AGM of the Company unless renewal is sought
at that meeting.
The Company and the Group do not make any donations to political parties or organisations and do
not intend to going forward, but do support certain industry-wide bodies such as the Home Builders
Federation in the UK. While the Board does not regard this as political in nature, in certain circumstances
such support together with donations made for charitable or similar purposes could possibly be treated
as a donation to a political organisation under the relevant provisions of the Companies Act 2006. For
example, a donation to a humanitarian charity which may also operate as a political lobby, sponsorship,
subscriptions, paid leave to employees fulfilling public duties and payments to industry representative
bodies could constitute a donation to a political organisation within the current definitions in the
Companies Act 2006.
Details of the Company’s and the Group’s charitable donations appear on page 20 of the Annual Report.
Resolution 18: Authority to allot shares
The Directors wish to renew the existing authority to allot unissued shares in the Company, which was
granted at the Company’s last AGM held on 30 April 2025 which is due to expire at the conclusion of
this AGM. Accordingly, paragraph a of resolution 18 would give the Directors the authority to allot
ordinary shares or grant rights to subscribe for or convert any securities into ordinary shares up to
an aggregate nominal amount equal to £11,823,717 (representing 1,182,371,700 ordinary shares).
This amount represents approximately one-third of the issued ordinary share capital of the Company
as at 26 February 2026, the latest practicable date prior to publication of this Notice of Meeting.
In line with guidance issued by The Investment Association (The IA), paragraph b of resolution 18
would give the Directors authority to allot ordinary shares or grant rights to subscribe for or convert
any securities into ordinary shares in connection with a rights issue in favour of ordinary shareholders
up to an aggregate nominal amount equal to £23,647,433 (representing 2,364,743,300 ordinary
shares), as reduced by the nominal amount of any shares issued under paragraph a of resolution 18.
This amount (before any reduction) represents approximately two-thirds of the issued ordinary share
capital of the Company as at 26 February 2026, the latest practicable date prior to publication of this
Notice of Meeting.
The Company holds 9,869,988 shares in treasury.
The authorities sought under paragraphs a and b of resolution 18 will expire at the earlier of 30 June 2027
and the conclusion of the next AGM of the Company.
The Directors have no present intention to exercise either of the authorities sought under this resolution.
However, if they do exercise the authorities, the Directors intend to follow The IA recommendations
concerning their use (including as regards the Directors standing for re-election in certain cases).
Special Resolutions
Special resolutions require at least three-quarters of the votes cast to be in favour.
Resolutions 19 and 20: Authority to dis-apply pre-emption rights
Resolutions 19 and 20 would give the Directors the power to allot ordinary shares (or sell any ordinary
shares which the Company holds in treasury) for cash without first offering them to existing shareholders
in proportion to their existing shareholdings.
The Company follows the principles set out by The Pre-Emption Group and has again taken the
opportunity to increase the proportion of issued capital (excluding treasury shares) which may be allotted
on the basis contemplated by resolutions 19 and 20, in each case as permitted in the Statement of
Principles on Disapplying Pre-Emption Rights most recently published by the Pre-Emption Group prior
to the date of this Notice of Meeting (the Pre-emption Principles).
The power set out in resolution 19 seeks to renew the Directors’ power to allot shares or grant rights
to subscribe for, or convert securities into, shares or sell treasury shares where they propose to do
so for cash (other than pursuant to an employee share scheme) otherwise than to existing shareholders
pro-rata to their holdings (i.e. non pre-emptively), as permitted by the Articles. The power will be
limited to:
a.
the allotment of shares for cash in connection with a rights issue, to allow the Directors to make
appropriate exclusions and other arrangements to resolve legal or practical problems which,
for example, might arise in relation to overseas shareholders;
Taylor Wimpey plc
Annual Report and Accounts 2025
240
Notice of Annual General Meeting continued
b.
the allotment of shares and treasury shares for cash up to an aggregate nominal value of
£3,547,115 being approximately 10% of the issued ordinary share capital (excluding treasury
shares) at 26 February 2026, the latest practicable date prior to publication of this Notice of
Meeting; and
c.
the allotment of shares and treasury shares for cash up to an aggregate nominal value of
£709,423, being approximately 2% of the issued ordinary share capital (excluding treasury shares)
at 26 February 2026, the latest practicable date prior to publication of this Notice of Meeting,
for the purposes of making a follow-on offer which the Board determines to be of a kind
contemplated by paragraph 3 of Part 2B of the Pre-emption Principles.
Resolution 20 is a special resolution which seeks to give the Directors power to make non-pre-emptive
issues of ordinary shares in connection with acquisitions and other capital investments as contemplated
by the Pre-emption Principles. This power is intended to give the Directors flexibility in managing the
Company’s capital resources and is in addition to that proposed by resolution 19. It would be limited to
allotments or sales of shares and treasury shares for cash up to:
i.
an aggregate nominal value of £3,547,115, being approximately 10% of the issued ordinary share
capital (excluding treasury shares) at 26 February 2026, the latest practicable date prior to
publication of this Notice of Meeting; and
ii.
an aggregate nominal value of £709,423, being approximately 2% of the issued ordinary share
capital (excluding treasury shares) at 26 February 2026, the latest practicable date prior to
publication of this Notice of Meeting, for the purposes of making a follow-on offer which the Board
determines to be of a kind contemplated by paragraph 3 of Part 2B of the Pre-emption Principles.
If given, these authorities will expire at the conclusion of the AGM in 2027 or at the close of business on
30 June 2027, whichever is the earlier (unless previously renewed, varied or revoked by the Company in
a general meeting).
The Board will continue to seek to renew these authorities at each AGM in accordance with
best practice.
Resolution 21: Authority to make market purchases of shares
This resolution authorises the Company to make market purchases of its own ordinary shares as
permitted by the Companies Act 2006.
Any purchases under this authority would be made in one or more tranches and would be limited
in aggregate to 10% of the ordinary shares of the Company in issue at the close of business on
26 February 2026.
The minimum price (exclusive of expenses) which may be paid for an ordinary share is 1 pence per
ordinary share. The maximum price to be paid on any exercise of the authority would not exceed the
highest of:
i.
105% of the average of the middle market quotations for the Company’s ordinary shares for the
five business days immediately preceding the date of the purchase; and
ii.
the higher of the price of the last independent trade and the highest current independent bid on the
trading venues where the purchase is carried out.
Shares purchased pursuant to these authorities could be held as treasury shares, which the Company
can re-issue quickly and cost-effectively, providing the Company with additional flexibility in the
management of its capital base. The total number of shares held as treasury shares shall not at any one
time exceed 10% of the Company’s issued share capital. Accordingly, any shares bought back over the
10% limit will be cancelled. As at 26 February 2026, the Company holds 9,869,988 shares in treasury.
This is a standard resolution, sought by the majority of public listed companies at AGMs.
The Board utilised this power during 2022 to return £150 million of excess capital to its shareholders
through buying back 116.9 million shares, of which 25,000,000 were held in treasury and the remaining
91.9 million were cancelled. The shares held in treasury have been and continue to be used for
obligations of the Company in respect of its employee share schemes, and are currently being used
to meet the exercise of Sharesave options and the vesting of Performance Share Plan awards,
as described in more detail in Note 26 on page 209.
The Company has announced a £52 million share buyback programme under the Company’s
updated Distribution Policy. The buyback programme is expected to commence on 5 March 2026
and to conclude no later than 30 June 2026. The programme will commence using the existing
authority approved by shareholders at the 2025 AGM to purchase up to 354,006,117 ordinary shares.
The Board intends to use this authority, having carefully considered market conditions, the Company’s
share price, alternative investment opportunities, appropriate gearing levels and the overall financial
position of the Company.
Pursuant to the share buyback programme, the Board intends that 25 million of the repurchased shares
will be held in treasury and the remaining shares will be cancelled. Shares held in treasury are intended
to be used to satisfy future obligations under the Company’s employee share schemes.
241
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Strategic report
Directors’ report
Financial statements
Notice of Annual General Meeting continued
The total number of options and conditional share awards to subscribe for ordinary shares outstanding
as at the close of business on 26 February 2026 was 35,677,631, representing approximately
1.0% of the issued ordinary share capital of the Company as at that date and approximately
1.1% of the Company’s issued ordinary share capital following any exercise in full of this authority
to make market purchases.
This authority will last until the earlier of 30 June 2027 and the conclusion of the Company’s next AGM.
Resolution 22: Notice of general meetings
By law the notice period required for general meetings of the Company (other than annual general
meetings) is 21 clear days unless shareholders agree to a shorter notice period, which cannot be less
than 14 clear days. At the last AGM, a resolution was passed approving the Company’s ability to call
general meetings (other than annual general meetings, which will continue to be held on at least 21 clear
days’ notice) on not less than 14 clear days’ notice. As this approval will expire at the conclusion of this
AGM, resolution 22 proposes its renewal. The shorter notice period of 14 clear days would not be used
as a matter of routine for any general meeting, but only where the flexibility is merited by the business of
a particular meeting and is thought to be to the advantage of shareholders as a whole. The renewed
approval will be effective until the Company’s next AGM, when it is intended that a similar resolution will
be proposed.
Note that, in order to be able to call a general meeting on less than 21 clear days’ notice, the Company
must make available electronic voting to all shareholders in respect of that meeting.
Procedural notes
1.
To be entitled to attend and vote at the AGM (and for the purpose of the determination by the
Company of the votes which shareholders may cast), shareholders must be registered on the
Register of Members of the Company by 6:00pm on Friday 24 April 2026 (or, in the event of any
adjournment, on the date which is two working days before the time of the adjourned meeting).
2.
As at 26 February 2026 (being the latest practicable date prior to the publication of this Notice of
Meeting the Company’s issued share capital consisted of 3,556,985,103 ordinary shares, carrying
one vote each. The Company holds 9,869,988 shares in treasury. Therefore, the total voting rights
in the Company as at 26 February 2026 were 3,547,115,115.
3.
A shareholder entitled to attend and vote at the AGM may appoint a proxy or proxies to exercise
all or any of their rights at the AGM. A proxy need not be a shareholder of the Company. In the case
of joint holders, where more than one of the joint holders purports to appoint a proxy, only the
appointment submitted by the most senior holder will be accepted. Seniority is determined by the
order in which the names of the joint holders appear in the Company’s Register of Members in
respect of the joint holdings (the first-named being the most senior).
4.
To be valid, any proxy appointment must be received by MUFG Corporate Markets at FREEPOST
PXS 1, or, electronically via the internet at https://uk.investorcentre.mpms.mufg.com or via the
Investor Centre app (see below). If you are a member of CREST, you can vote via the service
provided by Euroclear UK and International Limited at the electronic address provided in note 9,
or via the Proxymity platform in each case no later than 10:30am on Friday 24 April 2026.
Please note that all proxy appointments received after this time will be void. A proxy appointment
sent electronically at any time that is found to contain any virus will not be accepted. Unless
otherwise indicated on the Form of Proxy, CREST, Proxymity or any other electronic voting
instruction, the proxy will vote as they think fit or, at their discretion, withhold from voting.
Shareholders can vote electronically via the Investor Centre, a free app for smartphones and
tablets provided by MUFG Corporate Markets (the Company’s Registrar). It allows you to securely
manage and monitor your shareholdings in real time, take part in online voting, keep your details
up to date, access a range of information including payment history and much more. The app
is available to download on both the Apple App Store and Google Play, or by scanning the
relevant QR code below. Alternatively, you may access the Investor Centre via a web browser at:
https://uk.investorcentre.mpms.mufg.com.
5.
If you require a paper proxy form, or if you require additional forms, please contact MUFG
Corporate Markets, by email at shareholderenquiries@cm.mpms.mufg.com, or by telephone on
+44 (0)371 664 0300 (calls are charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open
between 9:00am to 5:30pm, Monday to Friday excluding public holidays in England and Wales).
6.
Any person to whom this Notice of Meeting is sent who is a person nominated under Section 146
of the Companies Act 2006 to enjoy information rights (a Nominated Person) may, under an
agreement between them and the shareholder by whom they were nominated, have a right to be
appointed (or to have someone else appointed) as a proxy for the AGM. If a Nominated Person
has no such proxy appointment right or does not wish to exercise it, they may, under any such
agreement, have a right to give instructions to the shareholder as to the exercise of voting rights.
Such persons should direct any communications and enquiries to the registered holder of the
shares by whom they were nominated and not to the Company or its Registrar.
Taylor Wimpey plc
Annual Report and Accounts 2025
242
Notice of Annual General Meeting continued
7.
The statement of the rights of shareholders in relation to the appointment of proxies in notes 3 and
4 above does not apply to Nominated Persons. The rights described in these notes can only be
exercised by shareholders of the Company.
8.
CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy
appointment service may do so by using the procedures described in the CREST Manual. CREST
personal members or other CREST sponsored members, and those CREST members who have
appointed a service provider(s), should refer to their CREST sponsor or voting service provider(s),
who will be able to take the appropriate action on their behalf.
9.
In order for a proxy appointment or instruction made using the CREST service to be valid,
it must be properly authenticated in accordance with Euroclear UK and International Limited’s
specifications, and must contain the information required for such instruction, as described in
the CREST Manual (available via www.euroclear.com). The message, regardless of whether it
constitutes the appointment of a proxy or is an amendment to the instruction given to a previously
appointed proxy must, in order to be valid, be transmitted so as to be received by the issuer’s
agent (ID RA10) by 10:30am on Friday 24 April 2026. For this purpose, the time of receipt will be
taken to be the time (as determined by the time stamp applied to the message by the CREST
Application Host) from which the issuer’s agent is able to retrieve the message by enquiry to
CREST in the manner prescribed by CREST. After this time any change of instructions to proxies
appointed through CREST should be communicated to the appointee through other means.
10.
The Company may treat as invalid a CREST Proxy instruction in the circumstances set out in
Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
If you are an institutional investor you may also be able to appoint a proxy electronically via the
Proxymity platform, a process which has been agreed by the Company and approved by the
Registrar. For further information regarding Proxymity, please go to www.proxymity.io. Your proxy
must be lodged by 10:30am on Friday 24 April 2026 in order to be considered valid or, if the
meeting is adjourned, by the time which is 48 hours before the time of the adjourned meeting
(excluding any part of a day that is not a working day). Before you can appoint a proxy via this
process you will need to have agreed to Proxymity’s associated terms and conditions. It is
important that you read these carefully as you will be bound by them and they will govern the
electronic appointment of your proxy. An electronic proxy appointment via the Proxymity platform
may be revoked completely by sending an authenticated message via the platform instructing
the removal of your proxy vote.
11.
Any corporation which is a member can appoint one or more corporate representatives who may
exercise on its behalf all of its powers as a member provided that they do not do so in relation to
the same shares.
12.
Members meeting the threshold requirements set out in Section 527 of the Companies Act 2006
have the right to require the Company to publish on a website a statement setting out any matter
relating to:
• The audit of the Company’s accounts (including the Auditors’ Report and the conduct of the
audit) that are to be laid before the AGM; or
• Any circumstance connected with an auditor of the Company ceasing to hold office since the
previous meeting at which annual accounts and reports were laid in accordance with Section
437 of the Companies Act 2006.
The Company may not require the shareholders requesting any such website publication to pay its
expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where the Company
is required to place a statement on a website under Section 527 of the Companies Act 2006,
it must forward the statement to the Company’s external Auditors no later than the time when it
makes the statement available on the website. The business which may be dealt with at the AGM
includes any statement that the Company has been required under Section 527 of the Companies
Act 2006 to publish on a website.
13.
Under Section 319A of the Companies Act 2006, shareholders have the right to ask questions at
the AGM relating to the business of the AGM. The Company must cause to be answered any such
question relating to the business being dealt with at the AGM but no such answer need be given if:
i.
to do so would interfere unduly with the preparation for the meeting or involve the disclosure of
confidential information;
ii.
the answer has already been given on a website in the form of an answer to a question; or
iii.
it is undesirable in the interests of the Company or the good order of the AGM that the question
be answered.
14.
Shareholders have the right to request information to enable them to determine that their vote
on a poll was validly recorded and counted. If you require confirmation, please contact MUFG
Corporate Markets, by email at shareholderenquiries@cm.mpms.mufg.com, or by telephone on
+44 (0)371 664 0300 (calls are charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable international rate. Lines are
open between 9:00am to 5:30pm, Monday to Friday excluding public holidays in England
and Wales).
15.
A copy of this Notice of Meeting, and other information required by Section 311A of the Companies
Act 2006, can be found at www.taylorwimpey.co.uk/corporate.
243
Shareholder information
Strategic report
Directors’ report
Financial statements
Notice of Annual General Meeting continued
16.
Voting on all resolutions at this year’s AGM will be conducted by way of a poll. The results
of the poll will be announced via a Regulatory Information Service and made available at
www.taylorwimpey.co.uk/corporate as soon as practicable after the AGM.
17.
A copy of the Company’s Articles of Association will be available for inspection during normal
business hours (excluding Saturdays, Sundays and public holidays) at the Company’s registered
office: Gate House, Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR from the date
of this Notice of Meeting until the close of the AGM.
18.
The documents listed below are available for inspection at an agreed time at the Company’s
registered office. If you wish to inspect these documents, email CoSec@taylorwimpey.com during
normal business hours (excluding Saturdays, Sundays and public holidays). Copies of these
documents will also be available before and during the AGM:
• Copies of the Executive Directors’ service contracts
• Copies of the letters of appointment of the Chair of the Board and the Non Executive Directors
• A copy of the full Annual Report and Accounts of the Company for the year ended 31 December
2025, including the Directors’ Remuneration Report referred to in resolution 2. This document is
also available on our corporate website
• A copy of the PSP Rules as referred to in resolution 4
19.
Personal data provided by shareholders at or in relation to the AGM (including names, contact
details, votes and Investor Codes), will be processed in line with the Company’s privacy policy
which is available at www.taylorwimpey.co.uk/privacy-policy.
20.
Under sections 338 and 338A of the Companies Act 2006, shareholders meeting the threshold
requirements in those sections have the right to require the Company:
i.
to give, to shareholders of the Company entitled to receive notice of the AGM, notice of a
resolution which may properly be moved and is intended to be moved at that meeting; and/or
ii.
to include in the business to be dealt with at that meeting any matter (other than a proposed
resolution) which may be properly included in the business. A resolution may properly be moved
or a matter may properly be included in the business unless:
a.
(in the case of a resolution only) it would, if passed, be ineffective (whether by reason of
inconsistency with any enactment or the Company’s constitution or otherwise);
b. it is defamatory of any person; or
c. it is frivolous or vexatious.
Such a request may be in hard copy form or in electronic form, must identify the resolution of which
notice is to be given or the matter to be included in the business, must be authenticated by the
person or persons making it, must have been received by the Company no later than 16 March
2026, being the date six clear weeks before the AGM, or if later, the time at which notice of the
AGM is given and (in the case of a matter to be included in the business only) must be
accompanied by a statement setting out the grounds for the request.
Taylor Wimpey plc
Annual Report and Accounts 2025
244
Notice of Annual General Meeting continued
APPENDIX 1: SUMMARY OF THE PRINCIPAL TERMS OF THE
RULES OF THE TAYLOR WIMPEY PERFORMANCE SHARE PLAN
2026 (THE PSP)
Introduction
The PSP is a discretionary share plan operated by the Company, under which the Remuneration
Committee (the Committee) may grant awards (Awards) over ordinary shares in the Company (Shares)
to incentivise and retain eligible employees. The PSP will be administered by the Committee or by any
sub-committee or person duly authorised by the Committee.
Eligibility
Any employee of the Company’s Group (the Group), including the Company’s Executive Directors
(the Executive Directors), may be selected to participate in the PSP at the Committee’s discretion.
Individual limit
Awards will not normally be granted to a participant under the PSP over Shares with a market value
(as determined by the Committee) in excess of 300% of salary in respect of any financial year of the
Company or, in the case of any Director of the Company, any lower limit specified in the Company’s
shareholder-approved Directors’ Remuneration Policy (the Remuneration Policy). Awards may, however,
be granted in excess of this limit to an eligible employee in connection with their recruitment by way of
compensating them for any awards or entitlements forfeited as a result of leaving their former employer
(a Recruitment Award).
Performance conditions
The vesting of Awards may (and, in the case of an Award to an Executive Director other than a
Recruitment Award, will to the extent required by the Remuneration Policy) be subject to the satisfaction
of performance conditions. The Committee will determine the period over which any performance
conditions are assessed. Any performance condition may be amended in accordance with its terms or
if anything happens which causes the Committee to consider it appropriate to amend the performance
condition, provided that the Committee considers that any amended performance condition would not
be materially less or more challenging to satisfy than the original performance condition would have
been but for the relevant circumstances occurring.
Vesting and release of Awards
Awards which are subject to performance conditions will normally have those conditions assessed as
soon as reasonably practicable after the end of the relevant performance period. The Committee will
determine the extent to which the Awards will vest, taking into account the extent that any relevant
performance conditions have been satisfied, the underlying performance of the Company and of the
participant, and such other factors the Committee considers, in its opinion, relevant. To the extent that
they vest, Awards will then normally vest on the vesting date set by the Committee at grant.
The Committee may also determine at grant that an Award is subject to an additional holding period
following vesting, at the end of which the Shares subject to the Award will be released (and may
be sold).
Overall limit
Awards may be satisfied using new issue Shares, treasury Shares or Shares purchased in the market.
The number of Shares which may be issued or transferred from treasury to satisfy awards granted in
any 10 year rolling period under the PSP and any other employee share plan adopted by the Company
may not exceed 10% of the issued ordinary share capital of the Company from time to time.
Shares transferred out of treasury will count towards this limit for so long as this is required under
institutional shareholder guidelines. However, awards which are surrendered or lapse will be disregarded
for the purposes of this limit.
We operate discretionary share plans, including the PSP, widely throughout the Company and the
removal of the 5% limit, which reflects recent changes to the Investment Association’s Principles of
Remuneration, is considered to be in its best interests. This change would provide the Company with
additional flexibility in terms of how it deploys its capital, whilst also potentially mitigating some of the
operational costs of acquiring shares in the market to satisfy employee awards. The Company is
mindful of the need to ensure that share usage remains well within the single 10% dilution limit.
Form of Awards
The Committee may grant Awards as: (i) conditional awards of Shares; (ii) options over Shares (with or
without an exercise price); or (iii) forfeitable awards of Shares. No payment is required for the grant of an
Award. Awards in the form of options will normally be exercisable from the point of vesting (or, where an
Award is subject to a holding period, the end of that holding period) until the tenth anniversary of the
grant date.
245
Shareholder information
Strategic report
Directors’ report
Financial statements
Notice of Annual General Meeting continued
Timing of Awards
Awards may only be granted to Executive Directors during the 42 days beginning on: (a) the date on
which the PSP is approved by the Company’s shareholders; (b) the date on which the Company holds
a general meeting; (c) the first business day after the announcement of the Company’s results for any
period; or (d) to the extent that share dealing restrictions prevent the grant of Awards in those periods,
the first business day after the day on which such dealing restrictions are lifted.
Alternatively, Awards may be granted on any other day on which the Committee determines that
exceptional circumstances exist which justify the grant of an Award.
Dividends and dividend equivalents
Unless the Committee determines otherwise, participants will receive an amount (in cash, unless the
Committee decides it will be fully paid or partly paid in Shares) equal in value to the dividends which
would have been payable on the number of Shares in respect of which an Award vests. The amount
payable will be calculated in relation to the record dates for dividends which fall during the period
beginning on the date of the Award and ending on the date on which the Award vests or, if there is
a holding period applicable to an Award, at the end of the holding period. The amount may assume
the reinvestment of dividends and exclude or include special dividends.
Malus and clawback
In certain circumstances, the Committee may at any time prior to the sixth anniversary of the date on
which an Award is granted (or, if an investigation into the conduct or actions of any participant or any
Group member has started, such later date as the Committee may determine in order to allow the
investigation to be completed): (a) reduce an Award (to zero if appropriate); (b) impose additional
conditions on an Award; or (c) require that the participant either returns some or all of the Shares
acquired under an Award or makes a cash payment to the Company in respect of the Shares delivered.
The Committee may invoke these malus and clawback provisions where it considers there are
exceptional circumstances such as: (a) a material misstatement in the published results of the Group
or a Group member; (b) the assessment of the performance conditions relating to, or the calculation
of the number of Shares subject to, the Award being based on an error or inaccurate or misleading
information; (c) the participant’s gross misconduct or breach of their restrictive covenants; (d) where the
Committee determines that the participant has caused a material financial loss to the Group as a result
of their reckless, negligent or wilful acts or omissions or inappropriate values or behaviour; (e) a material
breach of health and safety or environmental regulations; (f) serious reputational damage to a Group
member or its censure by a regulatory body and/or (g) insolvency or similar corporate failure.
Cessation of employment
An unvested Award will usually lapse when a participant ceases to be a Group employee or Director.
If, however, a participant ceases to be a Group employee or Director because of their ill health, injury or
disability, the sale of the participant’s employing company or business out of the Group or in other
circumstances at the discretion of the Committee (i.e. they leave as a ‘good leaver’), their Award will
normally continue to vest on the date when it would have vested (and be released from any relevant
holding period) as if they had not ceased to be a Group employee or Director.
The extent to which Awards normally vest in these circumstances will be determined by the Committee,
taking into account the satisfaction of any performance conditions applicable to Awards measured
over the original performance period, the underlying performance of the Company and the participant
and such other factors the Committee considers, in its opinion, relevant. The Committee retains the
discretion, however, to allow the Award to vest (and be released from any relevant holding period)
following the participant ceasing to be a Group employee or director, taking into account any applicable
performance conditions measured up to that point or, where the participant is a ‘good leaver’ as a result
of their employing company or business being sold out of the Group, to require that the Award is
exchanged for an equivalent award over shares in another company.
Unless the Committee decides otherwise, the extent to which an Award vests will also take into account
the proportion of the performance period (or, in the case of an Award not subject to performance
conditions, the vesting period) which has elapsed when the participant ceases to be a Group employee
or director. The period over which a Recruitment Award will normally be time pro-rated will be
determined at the time of grant and will normally replicate the approach to time pro-rating applied
to the award in respect of which the Recruitment Award was granted.
If a participant dies, their Award will vest (and, in the case of an Award subject to a holding period,
be released) on the date of their death on the basis set out for other ‘good leavers’ above. Alternatively,
the Committee may decide that an unvested Award will vest (and, in the case of an Award subject to
a holding period, be released) on the date it would have if the participant had not died on the basis set
out for other ‘good leavers’ above.
If a participant ceases to be a Group employee or Director during a holding period in respect of an
Award for any reason other than summary dismissal, their Award will normally be released at the end of
the holding period, unless the Committee determines that it should be released when the participant
ceases to be a Group employee or Director. If a participant dies during the holding period, their Award
will be released on the date of the participant’s death (unless the Committee decides it will be released
at the end of the normal holding period).
If a participant is summarily dismissed, any outstanding Awards they hold will lapse immediately.
Taylor Wimpey plc
Annual Report and Accounts 2025
246
Notice of Annual General Meeting continued
Awards in the form of options which do not lapse may normally be exercised to the extent vested for
a period of 12 months after vesting (or, where Awards are subject to a holding period, the end of the
holding period). Where options have already vested (and, where relevant, been released from any relevant
holding period) on the date on which the participant ceases to be a Group employee or Director, those
options may normally be exercised for a period of 12 months from the date of cessation, unless the
participant is summarily dismissed, in which case their options will lapse. If a participant dies, a vested
(and, where relevant, released) option may normally be exercised until the first anniversary of their death.
Corporate events
In the event of a takeover of the Company, Awards will normally vest (and be released from any holding
periods) early. The proportion of any unvested Awards which vest will be determined by the Committee,
taking into account the extent to which any performance conditions applicable to Awards have been
satisfied, the underlying performance of the Company and the participant, such other factors the
Committee considers, in its opinion, relevant, and, unless the Committee determines otherwise, the
proportion of the performance period, or in the case of Awards not subject to performance conditions,
the vesting period, which has elapsed. The period over which a Recruitment Award will normally be
time pro-rated will be determined at the time of grant and will normally replicate the approach to time
pro-rating applied to the award in respect of which the Recruitment Award was granted. Awards in the
form of options may then normally be exercised for a period of one month, after which they will lapse.
Alternatively, the Committee may require that Awards are exchanged for equivalent awards over shares
in the acquiring company (subject to the acquiring company’s consent).
If the Company is wound up or other corporate events occur such as a variation of the Company’s
share capital, a demerger, special dividend or other transaction which, in the Committee’s opinion,
would materially affect the value of Shares, the Committee may determine that Awards will vest
(and be released) on the same basis as for a takeover.
Adjustments
If there is a variation of the Company’s share capital or, in the event of a demerger, special dividend
or other transaction which, in the Committee’s opinion, would materially affect the value of Shares,
the Committee may make such adjustments to the number or class of Shares subject to Awards
and/or the exercise price applicable to Awards as it considers appropriate.
Settlement
The Committee may, in its discretion, decide to satisfy an Award with a cash payment equal to the
market value of the Shares (less any exercise price payable in the case of an option) that the participant
would have received had the Award been satisfied with Shares.
Rights attached to shares
Shares delivered under the PSP will not confer any shareholder rights on the participant until that
participant has received the beneficial ownership of the underlying Shares. Any Shares issued will rank
equally with other Shares then in issue (except for rights arising by reference to a record date prior to
their issue).
Non-transferability
Awards are not transferable other than to the participant’s personal representatives in the event of
their death.
Benefits not pensionable
Benefits received under the PSP are not pensionable.
Amendments
The Committee may, at any time, amend the PSP rules in any respect. The prior approval of the
Company’s shareholders must be obtained in the case of any amendment which is made to the
advantage of eligible employees and/or participants and relates to the provisions relating to eligibility,
individual or overall limits, the basis for determining the entitlement to, and the terms of, Awards; the
adjustments that may be made in the event of any variation to the share capital of the Company;
and/or the rule relating to such prior approval. There are, however, exceptions to this requirement
to obtain shareholder approval for any minor amendments to benefit the administration of the PSP,
to take account of the provisions of any legislation, or to obtain or maintain favourable tax, exchange
control or regulatory treatment for any participant or Group member.
Termination
No Awards may be granted more than 10 years after the date the PSP is approved by the
Company’s shareholders.
247
Shareholder information
Strategic report
Directors’ report
Financial statements
Shareholder facilities
Web communications
The Company makes documents and information available to shareholders by electronic means and
via a website, rather than by sending hard copies. This way of communicating is enabled in accordance
with the Companies Act 2006, Rule 6 of the Disclosure Guidance and Transparency Rules and the
Company’s Articles of Association.
Making documents and information available electronically:
a.
Enables the Company to reduce printing and postage costs
b.
Allows faster access to information and enables shareholders to access documents on the day
they are published on the Company’s website
c.
Reduces the amount of resources consumed, such as paper, and lessens the impact of printing
and mailing activities on the environment
The Company provides hard copy documentation to those shareholders who have requested this and
is, of course, happy to provide hard copies to any shareholders upon request.
The Company’s website is www.taylorwimpey.co.uk and shareholder documentation made available
electronically is generally accessible at www.taylorwimpey.co.uk/corporate.
Electronic communications
The Company also encourages shareholders to elect to receive notification of the availability of
Company documentation by means of an email. Shareholders can sign up for this facility by registering
at https://uk.investorcentre.mpms.mufg.com or via the Investor Centre app. Read more on page 242.
Online facilities for shareholders
You can access our Annual Report and Accounts, half year and full year statements, and copies of
recent shareholder communications online via our corporate website.
You can manage your shareholding in Taylor Wimpey plc via MUFG Corporate Markets’ Investor
Centre app, which can also be accessed online at https://uk.investorcentre.mpms.mufg.com.
Dividend Re-Investment Plan
Residents in the United Kingdom, Channel Islands or Isle of Man can choose to invest their cash
dividends, including any special dividends, in purchasing Taylor Wimpey plc shares on the market under
the terms of the Dividend Re-Investment Plan (the DRIP). For further information on the DRIP and how
to join, contact MUFG Corporate Markets.
Shareholders are again reminded to check their position with regard to any dividend mandates that
are in place, should you wish to either participate in the DRIP or discontinue or vary any participation,
as existing mandates will apply to all dividend payments (including special dividends) unless or until
revoked. The deadline for DRIP elections to reach the Registrar is 23 April 2026.
CREST
The Company offers shareholders who hold their Taylor Wimpey plc shares in CREST a facility for the
receipt of dividends through the CREST system.
For shares held in CREST, please note that elections continue to apply only to one dividend and a fresh
election must be made, via CREST, for each dividend.
Full details of the terms and conditions of the DRIP and the actions required to make or revoke an election,
both in respect of ordinary dividends (i.e. in this case, the 2025 final dividend) and any special dividends, are
available on the Investor Centre app or on the website at https://uk.investorcentre.mpms.mufg.com or on
request from the Registrar, MUFG Corporate Markets, Central Square, 29 Wellington Street, Leeds,
LS1 4DL, email: drip.enquiries@cm.mpms.mufg.com, tel: +44 (0)371 664 0381. Calls are charged at
the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged
at the applicable international rate. Lines are open between 9:00am and 5:30pm Monday to Friday
excluding public holidays in England and Wales.
Dividend mandates
We strongly encourage all shareholders to receive their cash dividends by direct transfer to
a bank or building society account. This ensures that dividends are credited promptly to
shareholders without the cost and inconvenience of having to pay in dividend cheques at a bank.
If you wish to use this cost-effective and simple facility, please register on the Investor Centre app or
at https://uk.investorcentre.mpms.mufg.com and register your bank mandate online or complete and
return the dividend mandate form attached to your dividend cheque. Additional mandate forms may be
obtained from MUFG Corporate Markets.
Taylor Wimpey plc
Annual Report and Accounts 2025
248
Shareholder facilities continued
Duplicate share register accounts
If you are receiving more than one copy of our Annual Report and Accounts, it may be that your shares
are registered in two or more accounts on our Register of Members. You might wish to consider
merging them into one single account. Please contact MUFG Corporate Markets who will be pleased
to carry out your instructions in this regard.
Taylor Wimpey and CREST
Taylor Wimpey plc shares can be held in CREST accounts, which do not require share certificates.
This may make it quicker and easier for some shareholders to settle stock market transactions.
Shareholders who deal infrequently may, however, prefer to continue to hold their shares in certificated
form and this facility will remain available for the time being, pending the likely general introduction of
dematerialised shareholdings in due course.
Taylor Wimpey plc share price
Our share price is available on our corporate website.
Gifting shares to charity
If you have a small holding of Taylor Wimpey plc shares, you may wish to consider gifting them to
charity. You can do so through ShareGift, which is administered by a registered charity, Orr Mackintosh
Foundation Limited. Shares gifted are re-registered in the name of the charity, combined with other
donated shares and then sold through stockbrokers who charge no commission. The proceeds are
distributed to a wide range of recognised charities. For further details, please contact ShareGift directly
at www.sharegift.org or telephone them on +44 (0)20 7930 3737.
Unsolicited approaches to shareholders and ‘Boiler Room’ scams
We receive reports from time to time from Taylor Wimpey shareholders who have received what appear
to be fraudulent approaches from third parties with respect to their shareholding in the Company.
In some cases these are ‘cold calls’ and in others correspondence. They generally purport to be from
a firm of solicitors or an investment company and offer, or hold out the prospect of, large gains on
Taylor Wimpey plc shares or other investments you may hold.
The approaches normally include the seeking of an advance payment from the shareholder, the
disclosure of the shareholder’s bank details or the sale of an unrelated investment. Shareholders
are advised to be extremely wary of such approaches. More information is available on our website
www.taylorwimpey.co.uk/corporate/shareholder-information/boiler-room-scams and you can check
whether an enquirer is properly authorised and report scam approaches by contacting the FCA on
www.fca.org.uk/consumers or by calling 0800 111 6768. This is a freephone number from the UK
and lines are open Monday to Friday, 8:00am to 6:00pm and Saturday 9:00am to 1:00pm.
249
Shareholder information
Strategic report
Directors’ report
Financial statements
Shareholder facilities continued
AGM
10:30am on Tuesday 28 April 2026 at:
The Garden Suite at the Crowne Plaza Gerrards
Cross, Oxford Road, Beaconsfield, HP9 2XE.
Proxy instructions must be received by 10:30am
on Friday 24 April 2026.
Group General Counsel and
Company Secretary
Ishaq Kayani
Taylor Wimpey plc
Gate House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3NR
Tel: +44 (0)1494 558323
Registrar
For any enquiries concerning your shareholding or
details of shareholder services, please contact:
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL
Email:
shareholderenquiries@cm.mpms.mufg.com
Tel: +44 (0)371 664 0300
Website:
https://uk.investorcentre.mpms.mufg.com
Calls are charged at the standard geographic
rate and will vary by provider. Calls outside the
United Kingdom will be charged at the applicable
international rate. Lines are open between 9:00am
and 5:30pm, Monday to Friday excluding public
holidays in England and Wales.
External Auditors
PricewaterhouseCoopers LLP
Solicitors
Slaughter and May
Stockbrokers
Citigroup Global Markets Limited
Bank of America
Principal operating addresses
UK
Taylor Wimpey plc
Gate House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3NR
Tel: +44 (0)1494 558323
Website: www.taylorwimpey.co.uk
Registered in England and Wales
number 296805
Details of all our operating locations are available
on our website www.taylorwimpey.co.uk
Taylor Wimpey UK Limited
Gate House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3NR
Tel: +44 (0)1494 558323
Spain
Taylor Wimpey de España S.A.U.
Carrer del Fluvià, 1, 3ª Planta, Oficina Izq.
07009 Palma
Islas Baleares
Spain
Tel: +34 971 706972
Taylor Wimpey plc
Annual Report and Accounts 2025
250
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