The beginning of 2025 has shown stability for Britain’s housebuilders, a notable improvement compared to the challenging two and a half years prior.

Taylor Wimpey reported on Tuesday that the critical spring selling season—the peak period for developers—is advancing “in line with expectations.”

Since January, the company has sold approximately 0.76 homes weekly across its 208 developments, reflecting a 9 percent increase from the same timeframe in 2024. Furthermore, its order book has grown to £2.34 billion, nearly £300 million more than this time last year.

Jennie Daly, the chief executive of Taylor Wimpey, highlighted “good levels of customer demand” thanks to improving affordability driven by rising wages and decreasing mortgage rates.

This trend is expected to persist, suggesting a brighter outlook for both Taylor Wimpey and the broader industry, especially as many builders report enhancements in the planning system. However, the stock market appears less optimistic.

Since Rachel Reeves’s budget announcement last October, Taylor Wimpey shares have fallen by over 25 percent, resulting in tempered expectations around potential interest rate reductions. In the wake of President Trump’s trade war, there is speculation that the Bank of England might reconsider its post-budget stance and accelerate rate cuts. Nonetheless, investors have yet to adjust their perspectives on Taylor Wimpey.

Due to the recent sell-off, the company’s shares are currently valued at 0.96 times their book value, which indicates that the market capitalization is slightly less than the value of the land reported on its balance sheet—a valuation rarely witnessed outside of a recession.

Taylor Wimpey’s latest update on Wednesday further illustrated a general uplift in the housing market, but shares declined again, now nearly 5 percent lower this year. In contrast, other major developers—such as Barratt, Redrow, Bellway, Berkeley, and Persimmon—have all seen their stock prices rise by 4 percent or more in 2025.

On the upside, the decrease in share price has resulted in an enticing 7.9 percent dividend yield for Taylor Wimpey, significantly higher than the sector average.

Moreover, Taylor Wimpey possesses an impressive landbank with sufficient land to facilitate the construction of 78,000 homes, ensuring a robust pipeline for at least the next five years. A supply exceeding four years is deemed ample. Additionally, the company has 136,000 plots categorized as “strategic” in its landbank, positioning it to capitalize on potential reforms in the planning system.

Jennie Daly, who previously served as the UK director of planning at Taylor Wimpey before ascending to her current role in 2022, is well-equipped to navigate the complexities of planning.

The Labour party is focusing on reforming the planning system to fulfill its commitment to building 1.5 million homes by the end of 2029. However, industry experts remain skeptical about the feasibility of meeting that target without some form of demand-side stimulus, like a renewed Help to Buy scheme.

The housebuilders argue that they will build only what they can sell, and to genuinely increase housing supply, there must be support for homebuyers—particularly first-time buyers who, according to Daly, are still facing “some challenges” related to affordability.

A revised Help to Buy program may be on the table, while in the interim, the government could explore ways to assist housing associations in expanding their portfolios. An uptick in demand would benefit developers, enabling them to increase housing production and profitability.

Taylor Wimpey aims to construct between 10,400 and 10,800 homes in 2025, but in 2019, during the last “normal” year, it completed just over 16,000 homes—an output analysts expect the company to return to.

However, there remains a possibility that the government will not reintroduce any demand incentives. Notably, this is the first instance in 60 years where there is no government support for first-time buyers, and with government objectives remaining ambitious, there is a substantial likelihood they will reconsider initiatives like Help to Buy to fulfill their promises.

Advice: Consider buying due to its industry-leading dividend; improved planning conditions; enhancing affordability; and the possibility of government reinstituting Help to Buy or similar support.