Taylor Wimpey increases fire safety provision by £222 million following updated assessments

UK housebuilder expands cladding remediation work amid revised risk profile

Taylor Wimpey plc has increased its cladding fire safety provision by £222.2 million following updated fire risk assessments and site investigations across legacy buildings.

According to the company’s half-year 2025 results, the reassessment led to a higher estimate of costs associated with remediating cavity barrier defects behind brickwork and render, which had not been visible in earlier surveys.

The new provision includes £144.9 million for expanded remedial works, £39.5 million for additional cladding remediation, and £37.8 million for site-specific costs, professional fees and contingencies.

The company said it continues to support leaseholders by covering remediation costs and reiterated that residents should not bear the financial burden of these works.

Taylor Wimpey said the provision reflects its best current estimate, noting that it is pursuing cost recovery where applicable, including legal action where necessary.

Reassessment prompted by evolving guidance and expanded surveys

Taylor Wimpey explained that recent work to meet the Government’s Remediation Action Plan deadlines included further Fire Risk Appraisal of External Walls (FRAEW) and intrusive investigations.

The company stated that two-thirds of the additional provision relates to cavity barriers not identified during previous non-intrusive surveys.

It noted that some of the increase was linked to recent changes in how chartered fire engineers interpret the PAS 9980 standard, which has resulted in more conservative assessments of risk.

Buildings that previously required no remediation under older EWS1 assessments were now identified as needing work based on current FRAEW analysis, according to the company.

The firm said it had increased internal capability and accelerated its remediation programme to meet regulatory timelines and ensure safety standards are maintained.

Financial impact and group performance in first half of 2025

The company reported a loss before tax of £92.1 million in the first half of 2025, compared to a £99.7 million profit in the same period the previous year.

This result reflects exceptional charges, including the £222.2 million fire safety provision and an £18.0 million provision related to commitments made to the Competition and Markets Authority.

Group operating profit for the period was £161.0 million, including a £20.0 million charge related to defective workmanship by a former contractor on a London development.

Taylor Wimpey reaffirmed its guidance for full-year UK completions to be between 10,400 and 10,800 homes, with operating profit expected to be around £424 million.

The firm reported an 11% year-on-year increase in group completions, including joint ventures, rising to 5,264 homes in the first half of 2025.

Cladding remediation cost outlook and financial planning

Taylor Wimpey said it still expects cash outflow related to cladding remediation to be around £100 million in 2025, unchanged from earlier guidance.

While the revised provision increases the gross cost over a longer timeframe, the company stated that lower tax payments are likely to offset this in 2026.

The provision excludes any potential recoveries, although the company confirmed it is pursuing claims against responsible parties where applicable.

The company described the £222.2 million increase as its best estimate based on current assessments, noting that the provision is subject to change as further buildings are evaluated and remediation progresses.

Taylor Wimpey ended the period with a net cash balance of £326.6 million and anticipates a year-end balance of around £350 million, subject to land investment.

Ongoing remediation strategy and customer engagement

Taylor Wimpey said it prioritises completing works efficiently without compromising safety or quality.

The company said it remains committed to ensuring residents have a clear resolution pathway, and reiterated that leaseholders would not be asked to contribute financially to fire safety remediation.

Taylor Wimpey stated that its internal remediation delivery capability has been strengthened and that progress toward government completion targets is ongoing.

Chief Executive Jennie Daly said: “The safety of our customers remains our highest priority – this principle has consistently guided our approach.”

Daly added: “We have therefore increased our cladding fire safety provision to reflect findings from updated fire risk assessments and investigations in the first half.”

The firm confirmed it would continue to engage with relevant authorities, including the Building Safety Regulator, as well as industry professionals, to meet all legal and safety obligations.

Wimpey increases fire safety provision by £222 million following updated assessments: Summary

Taylor Wimpey plc has raised its fire safety provision by £222.2 million.

The company attributed the increase to expanded cavity barrier remediation works, new FRAEW assessments and evolving fire engineer interpretations.

Two-thirds of the increased provision relates to defects behind brickwork and render not visible in earlier inspections.

The updated figure includes £39.5 million for additional cladding-related work and £37.8 million in cost adjustments.

Fire safety remediation costs are not being passed to leaseholders, the company said.

Cash outflows in 2025 remain forecast at £100 million.

The company is pursuing cost recovery where responsible parties can be identified.

Net cash at the end of the first half was £326.6 million.

Operating profit for H1 2025 was £161.0 million, including a £20.0 million remediation charge unrelated to cladding.

Loss before tax was £92.1 million, also reflecting a £15.8 million CMA-related provision.

Taylor Wimpey reaffirmed full-year UK completion guidance of 10,400 to 10,800 homes.