Taylor Wimpey costs warning hits housebuilders' shares

Taylor Wimpey warned that pricing in its order book is softer and build cost inflation will be higher than previously expected. The update pressured housebuilders broadly, reflecting margin risk for the sector. The news is negative for near-term earnings outlook but does not imply a structural shock.

Analysis

Taylor Wimpey warned that pricing in its order book is softer and build cost inflation will be higher than previously expected. The update pressured housebuilders broadly, reflecting margin risk for the sector. The news is negative for near-term earnings outlook but does not imply a structural shock.