Taylor Wimpey | plc # Well-positioned for medium term growth ![img-0.jpeg](img-0.jpeg) ![img-1.jpeg](img-1.jpeg) Taylor Wimpey plc Annual Report and Accounts 2025 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ ❤ 2 回 # Contents ## 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 | ## 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 ![img-2.jpeg](img-2.jpeg) ![img-3.jpeg](img-3.jpeg) ## Chair's statement Robert Noel Chair p11 ![img-4.jpeg](img-4.jpeg) ![img-5.jpeg](img-5.jpeg) ## Chief Executive's strategic overview Jennie Daly Chief Executive p13 ![img-6.jpeg](img-6.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information # Well-positioned for medium term growth 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. ## 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) **14k** UK completions (excluding joint ventures) (2025: 10.6k) **4.5-5** UK landbank years (2025: c.7.2) **16-18%** Group adjusted operating profit margin* (2025: 10.9%) **>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 ## Our investment case This report showcases our strong proposition for shareholders. **Delivering growth** Read more on page 4 ![img-7.jpeg](img-7.jpeg) **Unlocking value** Read more on page 5 ![img-8.jpeg](img-8.jpeg) **Maximising returns** Read more on page 6 ![img-9.jpeg](img-9.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 4 3 2 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. ![img-10.jpeg](img-10.jpeg) | Plots in planning for first principle determination | Total planning permissions granted | Year on year increase in outlet openings | | --- | --- | --- | | **c.32k** (2024: c.27k) Targeted applications designed to unlock land pipeline in areas of opportunity | **16.5k** (2024: 15.1k) | **29%** (2024: 17%) We will grow the number of average outlets year on year | Our short term owned and controlled landbank | 14.4k plots controlled (2024: 13.1k) | 76.8k total plots (2024: 78.6k) | 62.4k plots owned (2024: 65.5k) | | --- | --- | --- | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ ❤ 5 Well-positioned for medium term growth continued # Unlocking value Operational levers in place to drive efficiency, with an experienced management team in place to execute plan. 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: Taylor Wimpey Proactive response to evolving regulations Policy engagement and collaboration Technology and design innovation Supply chain readiness Build efficiency ![img-11.jpeg](img-11.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ 6 # Well-positioned for medium term growth continued # 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. ![img-12.jpeg](img-12.jpeg) 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. 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. ![img-13.jpeg](img-13.jpeg) * 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 Strategic report Directors' report Financial statements Shareholder information 7 Business overview In 2025, we delivered 10.7k new homes and contributed £359m to local communities in the UK. This makes us one of the UK's largest homebuilders. ![img-14.jpeg](img-14.jpeg) ## Where we operate We operate across five divisions and at a local level from 22 regional businesses in the UK, with a small operation in Spain. | Scotland, North East and North Yorkshire | North West and Yorkshire | | --- | --- | | 4 regional businesses | 3 regional businesses | | Midlands and Wales | London and South East | | 5 regional businesses | 5 regional businesses | | Central and South West | Spain | | 5 regional businesses | 1 regional business | Map key - Head office - Regional offices For more information on our Spanish business, please see page 78 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information Business overview continued ![img-15.jpeg](img-15.jpeg) 1. Read more about our strategic cornerstones on page 15 2. Read more about our sustainability framework on page 46 # Our purpose To build great homes and create thriving communities # Our values | Take responsibility | Be proud | Better tomorrow | Respectful and fair | | --- | --- | --- | --- | | | built on a strong culture of doing the right thing | | | # Our strategic cornerstones | Land | Operational excellence | Sustainability | Capital allocation | | --- | --- | --- | --- | | | | | | # Our sustainability framework We have developed our sustainability framework to guide our approach across five key priority areas: | Homes and places | Our people | Supply chain partners | Environmental impact | Responsible and resilient business | | --- | --- | --- | --- | --- | | | | | | | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 9 Business overview continued # Group financial highlights ![img-16.jpeg](img-16.jpeg) Group completions including joint ventures 11,229 2025 11,229 2024 10,593 2023 10,848 Revenue £3,844.6m 2025 £3,844.6m 2024 £3,401.2m 2023 £3,514.5m Adjusted operating profit* £420.6m 2025 £420.6m 2024 £416.2m 2023 £470.2m Profit before tax £146.5m 2025 £146.5m 2024 £320.3m 2023 £473.8m Total dividend per share paid in the year 9.33p 2025 9.33p 2024 9.59p 2023 9.57p Year end net cash* £342.6m 2025 £342.6m 2024 £564.8m 2023 £677.9m Tangible net assets per share* 117.6p 2025 117.6p 2024 123.8p 2023 127.1p Adjusted operating profit margin* 10.9% 2025 10.9% 2024 12.2% 2023 13.4% Return on net operating assets* 11.0% 2025 11.0% 2024 10.9% 2023 12.6% * 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. ![img-17.jpeg](img-17.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 10 Business overview continued # UK highlights ![img-18.jpeg](img-18.jpeg) ## 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 CO₂e emissions (absolute) since 2019 (2024: 47%) ## 92% Employee engagement score (2024: 93%) ## £359m Contributions to local communities, via planning obligations (2024: £345m) ![img-19.jpeg](img-19.jpeg) 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 Strategic report Directors' report Financial statements Shareholder information 11 Chair's statement # 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 ![img-20.jpeg](img-20.jpeg) # 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 12 # 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. > “We undertook an extensive shareholder consultation process with our largest shareholders as part of the Directors' Remuneration Policy review.” > > Robert Noel > Chair ## 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. ![img-21.jpeg](img-21.jpeg) Robert Noel Chair --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 13 三 Chief Executive's strategic overview # Well-positioned for medium term growth Jennie Daly Chief Executive ![img-22.jpeg](img-22.jpeg) ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 14 # Chief Executive's strategic overview continued 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. ![img-23.jpeg](img-23.jpeg) # 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) ## 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 1. Read more in the Q&A with Jennie Daly on pages 16 to 18 2. 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 # Medium term targets ## UK completions (excl. JVs): 14,000 ![img-24.jpeg](img-24.jpeg) ## Group adjusted operating profit margin* 16–18% ![img-25.jpeg](img-25.jpeg) ## UK landbank years (landbank divided by annual completions) 4.5–5 years ![img-26.jpeg](img-26.jpeg) ## Group return on net operating assets* >20% ![img-27.jpeg](img-27.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information Chief Executive's strategic overview continued # 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. ![img-28.jpeg](img-28.jpeg) ## 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 1 Read more on pages 39 to 40 ![img-29.jpeg](img-29.jpeg) ## 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 1 Read more on pages 38 to 43 ![img-30.jpeg](img-30.jpeg) ## 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 1 Read more on page 46 to 49 ![img-31.jpeg](img-31.jpeg) ## 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 1 Read more on page 12 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 16 # Chief Executive's strategic overview continued ![img-32.jpeg](img-32.jpeg) on our medium term targets and strategy ## Q Why did you choose these specific medium term targets and why now? 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. 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%. ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 17 # Chief Executive's strategic overview continued ## Q How important is planning reform to achieving your targets? ## 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 Is 14k completions the true capacity of the business? ## A 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 What does the next cycle look like? ## A 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. ## Q What is the short term outlook? ## 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 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 million¹. As we look to our medium term targets, we continue to drive the pipeline of new planning applications, benefiting from our quality strategic ![img-33.jpeg](img-33.jpeg) 1. For more information on our guidance for 2026, please see our 2025 FY results statement on our website. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 18 # Chief Executive's strategic overview continued 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. ![img-34.jpeg](img-34.jpeg) * 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. ## Q How do your new targets fit into the longer term strategy? 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 Why have you updated the Distribution Policy? 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. 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. ![img-35.jpeg](img-35.jpeg) Jennie Daly CBE Chief Executive ## 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 19 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. ![img-36.jpeg](img-36.jpeg) # 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 jobs¹. Housing delivery is not only a social necessity, it is an essential driver of economic health and productivity. ![img-37.jpeg](img-37.jpeg) # 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. ![img-38.jpeg](img-38.jpeg) # 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. ![img-39.jpeg](img-39.jpeg) 1. Home Builders Federation (HBF), The Economic Footprint of Home Building in England and Wales. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 20 三 Adding value continued ## 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. ![img-40.jpeg](img-40.jpeg) ![img-41.jpeg](img-41.jpeg) ## 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. ![img-42.jpeg](img-42.jpeg) 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. ![img-43.jpeg](img-43.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ → 21 Our business model # A model for the full cycle We manage the homebuilding process throughout the value chain, from original land investment decision to after sales care. ![img-44.jpeg](img-44.jpeg) What we do - Read more on pages 22 to 23 ![img-45.jpeg](img-45.jpeg) How we make money and invest - Read more on pages 24 to 25 ![img-46.jpeg](img-46.jpeg) Critical resources and relationships - Read more on pages 26 to 28 ![img-47.jpeg](img-47.jpeg) How we are evolving - Read more on page 28 ![img-48.jpeg](img-48.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 22 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 consultants 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 Strategic report Directors' report Financial statements Shareholder information ← 23 # 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'. ![img-49.jpeg](img-49.jpeg) ## 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 optimize 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 landmark 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 24 # Our business model continued How we make money and invest ## 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. ![img-50.jpeg](img-50.jpeg) ### 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. ![img-51.jpeg](img-51.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 25 # Our business model continued How we make money and invest ## Optimising margin continued ### 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™, 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. 1. 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 each return capital to our shareholders and reinvest in our business. Dividends paid in 2025 £330m 2025 £330m 2024 £330m 2023 £330m ## Updated Distribution policy Our 'Distribution Policy' is to return 7.5% of net assets per annum, or at least £350 million, in two equal installments. It is the Board's practice 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. ![img-52.jpeg](img-52.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] ^{}[] 26 ^{}[] # Our business model continued # Critical resources and relationships ## 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. ![img-53.jpeg](img-53.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ → 27 # Our business model continued Critical resources and relationships ## 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. ![img-54.jpeg](img-54.jpeg) ## 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. ![img-55.jpeg](img-55.jpeg) ![img-56.jpeg](img-56.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 28 # Our business model continued Critical resources and relationships ## 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 ![img-57.jpeg](img-57.jpeg) * 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. ## 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 ## 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 componentsisation, 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. ![img-58.jpeg](img-58.jpeg) #### 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 29 Our market environment # A challenging backdrop in 2025 ## 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 ![img-59.jpeg](img-59.jpeg) ## 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 2024: 7.1% Sources: HMRC, NHBC --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 30 # # Our market environment continued ## 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. **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)) Following the February 2025 rate cut, mortgage rates trended down throughout the year ![img-60.jpeg](img-60.jpeg) Source: BoE ![img-61.jpeg](img-61.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 31 三 # Our market environment continued 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). Real wage growth increased by 0.5% year on year to October to December 2025 ![img-62.jpeg](img-62.jpeg) Total real average weekly earnings three-month average annual growth rates in Great Britain Source: ONS House prices in real terms (adjusted for inflation) fell by -2.0% year on year in Q4 2025 ![img-63.jpeg](img-63.jpeg) UK house prices adjusted for inflation Source: Nationwide --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information Our market environment continued ## 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. ## 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. +10% year on year increase in property transactions in the 12 months to December 2025 (source: HMRC) Monthly mortgage costs continue to be below monthly average rental cost for those with a 75% LTV ![img-64.jpeg](img-64.jpeg) Sources: Bank of England, Nationwide, HomeLet Rental Index ![img-65.jpeg](img-65.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 33 Our market environment continued # 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)) ![img-66.jpeg](img-66.jpeg) # 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 Population growth continues to underpin demand for housing ![img-67.jpeg](img-67.jpeg) Source: ONS, MHCLG 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] ^{}[] ^{}[] ^{}[] # Our market environment continued 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. ![img-68.jpeg](img-68.jpeg) # 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 35 # Our market environment continued ## 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. ![img-69.jpeg](img-69.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 36 # 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. | 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. | | 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. | | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 37 # Market trends, opportunities and risks continued | Key driver | Climate change Link to Principal Risks A: Government policies, regulations and planning H: Natural resources and climate change 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. | | --- | --- | | 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. | | 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 CO2 than older properties. | | 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. | # Land and planning ## Link to Principal Risks A: Government policies, regulations and planning E: Land availability 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. 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. 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. 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 38 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. ![img-70.jpeg](img-70.jpeg) # 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) ![img-71.jpeg](img-71.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 39 # Performance and operational review continued ## 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 and 70k 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. ![img-72.jpeg](img-72.jpeg) 0.75 homes sold per outlet per week (2024: 0.75) £335k average UK selling price (2024: £319k) ![img-73.jpeg](img-73.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 40 # 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. ![img-74.jpeg](img-74.jpeg) # 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). 4.5-5 target landbank years c.8k plots approved in 2025 (2024: c.12k) ![img-75.jpeg](img-75.jpeg) # 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 ![img-76.jpeg](img-76.jpeg) 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 41 # 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) ![img-77.jpeg](img-77.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ → 42 三 # 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. ![img-78.jpeg](img-78.jpeg) ![img-79.jpeg](img-79.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 43 # 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. ![img-80.jpeg](img-80.jpeg) ![img-81.jpeg](img-81.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 44 # Key performance indicators ## 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. ![img-82.jpeg](img-82.jpeg) - 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 16.9% 2025 16.9% 2024 17.0% 2023 15.2% ### 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. ## Link to strategic cornerstone - Land ### Link to Principal risks - A: Government policies, regulations and planning - B: Mortgage availability and housing demand - E: Land availability ## Landbank years Medium term target c.7.2 2025 c.7.2 2024 c.7.8 2023 c.7.7 ### 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. ## Link to strategic cornerstone - Land ### Link to Principal risks - A: Government policies, regulations and planning - B: Land availability ## % of completions from strategically sourced land 39% 2025 39% 2024 40% 2023 45% ### 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. ## Link to strategic cornerstone - Land ### Link to Principal risks - A: Government policies, regulations and planning - E: Land availability ## Construction Quality Review (average score/6) 4.96 2025 4.96 2024 4.93 2023 4.89 ### 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. ## 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 45 # Key performance indicators continued | Average reportable items per inspection | Annual Injury Incidence Rate (per 100,000 employees and contractors) | Employee engagement (annual survey) | Reduction in operational carbon emissions intensity (measured at end of year) | HBF customer satisfaction score (revised methodology) | | --- | --- | --- | --- | --- | | **0.17** 2025 0.17 2024 0.18 2023 0.28 | **200^{®}** 2025 200 2024 212 2023 151 | **92%** 2025 92% 2024 93% 2023 93% | **44%** 2025 44% 2024 21% 2023 5% | **4.24** 2025 4.24 No prior year data | | **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. | **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** 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. | **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. | | **Link to strategic cornerstone** Operational excellence | **Link to strategic cornerstone** Operational excellence | **Link to strategic risk** 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** Sustainability | **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. | | **Link to Principal risks** C Availability and costs of materials and subcontractors D Attract and retain high-calibre employees F Quality and reputation | **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 Principal risks** C Availability and costs of materials and subcontractors D Attract and retain high-calibre employees F Quality and reputation | | 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 Strategic report Directors' report Financial statements Shareholder information ← 46 33 Our sustainability framework # 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. ![img-83.jpeg](img-83.jpeg) | ② Homes and places | Priority issues | | --- | --- | | 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. ① Read more on pages 19 to 20, and 40 to 41 | • Build quality • Customer services • Placemaking • Nature • Energy-efficient homes • Social value | | ② Our people | Priority issues | | --- | --- | | 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. ① Read more on pages 41 to 42 | • Attraction • Development and succession • Reward and remuneration • Equality, diversity and inclusion • Engagement and retention | | ② Supply chain partners | Priority issues | | --- | --- | | To engage our suppliers and subcontractors to contribute towards growth, innovation, cost-efficiency, and sustainability, to support our delivery of quality homes and places. ① Read more on pages 27 and 42 | • Subcontractor engagement • Supplier relationship management • Future skills • Sustainable procurement • Modern slavery | | ② Environmental impact | Priority issues | | --- | --- | | 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. ① Read more on pages 47 to 65 | • Climate change and carbon • Waste reduction • Water | | ② Responsible and resilient business | Priority issues | | --- | --- | | 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. ① Read more on pages 41, and 91 to 99 | • Health, safety and environment • Corporate governance • Internal audit and business continuity • External report • Digital innovation/cyber security • Charitable endeavours | --- Strategic report Directors' report Financial statements Shareholder information Our commitment to the environment # Our environmental impact We want to play our part in creating a greener, healthier future for customers, colleagues and communities and for future generations. ![img-84.jpeg](img-84.jpeg) 44% reduction in operational (scope 1 and 2) carbon emissions intensity since 2019 21% reduction in waste intensity in 2025 since 2019 8,800 wildlife enhancements installed on our sites since 2021 25% reduction in water intensity in 2025 since 2019 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. # 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 ![img-85.jpeg](img-85.jpeg) ![img-86.jpeg](img-86.jpeg) ![img-87.jpeg](img-87.jpeg) ![img-88.jpeg](img-88.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 48 # Our commitment to the environment continued ## 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. ## Our environment targets | Topic | Environmental objectives | Targets from 2026 | | --- | --- | --- | | 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 | | 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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 49 Our commitment to the environment continued ## Reducing our environmental impact – progress so far ### Climate change 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 CO₂e/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 CO₂e/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%) ### Nature 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 ### Waste and water 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% (⓷) 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 (m³/100sqm) has increased by 9% over the same period (2024: 7%) ### Read more Further information on progress against our previous environmental targets is included on pages 62 and 63 and in our Sustainability Summary. 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 Strategic report Directors' report Financial statements Shareholder information 50 Reporting our progress # ESG reporting and disclosure 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 $\odot$ 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 Strategic report Directors' report Financial statements Shareholder information 51 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. ![img-89.jpeg](img-89.jpeg) # 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. 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 # Sustainability Summary 2025 Our Sustainability Summary 2025 includes detailed ESG performance information and data. ![img-90.jpeg](img-90.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 52 # Task Force on Climate-related Financial Disclosures continued ## 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. ![img-91.jpeg](img-91.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 53 # Task Force on Climate-related Financial Disclosures continued 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 ![img-92.jpeg](img-92.jpeg) 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 $1.5^{\circ}\mathrm{C}$ 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 54 # 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 ![img-93.jpeg](img-93.jpeg) 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. ![img-94.jpeg](img-94.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 55 # 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. 1. Read more about our risk management process on pages 68 to 70 ![img-95.jpeg](img-95.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 56 # Task Force on Climate-related Financial Disclosures continued ## 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. | 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 | | Key Risk Opportunity --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] ^{}[] ^{}[] ^{}[] # 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 Risk Opportunity --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 58 # 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) | | a | 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) | 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. | | | | | | • 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 | | | | b | 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. | • Communication with customers and training for customer, sales and marketing teams to ensure customers are supported to use and understand new technologies | Short term minor risk exposure, likely, with impact on financial statements expected to be immaterial based on current regulatory changes. | | | | | Risk of reputational damage if low carbon homes are not delivered to customers in line with changing expectations. | • ‘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) | 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. | | | c | 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. | | | d | 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. | | | e | 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 Risks Opportunity --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 59 # Task Force on Climate-related Financial Disclosures continued ## Physical impacts Time frame analysed: medium term (up to 2030), long term (beyond 2030) Residual risks or opportunities (moderate to high): see rows below Risk type: physical (acute and chronic) | Description | Example risks/opportunities | Our mitigations | Residual risk after mitigation (1.5°C scenario unless stated) | | --- | --- | --- | --- | | 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°C (2030 and beyond 2030) – flooding, heat stress, drought, wildfire and subsidence - Assets 4°C (beyond 2030) – heat stress, wildfire and subsidence - Supply chain 1.5°C (2030 and beyond 2030) – heat stress, drought and wildfire - Supply chain 4°C (2030 and beyond 2030) – heat stress and wildfire Key Risk Opportunity --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 60 # 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 TCFD¹. We have modelled the costs and investment required to reach our goals as well as our approach to neutralising residual emissions ![img-96.jpeg](img-96.jpeg) - **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 ② 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 CO₂ but N₂O and CH₄ are included in conversion factors, for example in relation to gas and diesel usage. We currently exclude refrigerants (HFCs, PFCs, SF₆) 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 ## 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. ![img-97.jpeg](img-97.jpeg) 1 Sectoral guidance for housebuilding had not been published when our targets were developed. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 61 # 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. ![img-98.jpeg](img-98.jpeg) 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ → 62 三 # 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 tCO₂e (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 Strategic report Directors' report Financial statements Shareholder information ← 0 → 63 三 # Task Force on Climate-related Financial Disclosures continued | 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 m² 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 kgCO₂e per m² 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 materials¹. | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 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 | a. Describe the Board's oversight of climate-related risks and opportunities. | ☐ | 52 to 53 | | Disclose the organisation's governance around climate-related risks and opportunities. | b. Describe management's role in assessing and managing climate-related risks and opportunities. | ☐ | 52 to 53 | | Strategy | c. Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term. | ☐ | 56 to 59 | | 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. | 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 | f. Describe the organisation's processes for identifying and assessing climate-related risks. | ☐ | 55 | | Disclose how the organisation identifies, assesses, and manages climate-related risks. | 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 | 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 | | Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. | 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 Strategic report Directors' report Financial statements Shareholder information 65 # Task Force on Climate-related Financial Disclosures continued # Greenhouse gas emissions (tonnes of $\mathrm{CO}_{2}\mathrm{e}$ ) and energy use (MWh) | | 2025 | 2024 | 2023 | 2022 | 2019 | | --- | --- | --- | --- | --- | --- | | Scope 1 and 2 emissions | | | | | | | Scope 1 GHG emissions (tCO2e) | 8,607 | 11,787 | 14,275 | 15,975 | 21,018 | | Scope 2 market based GHG emissions (tCO2e) | 1,223 | 1,218 | 1,628 | 2,331 | 3,563 | | Scope 2 location based GHG emissions (tCO2e) | 4,487 | 5,078 | 4,649 | 4,279 | 6,172 | | Scope 1 and 2 market based GHG emissions (tCO2e) | 9,829 | 13,005 | 15,902 | 18,306 | 24,581 | | Scope 1 and 2 market based intensity (tCO2e per 100 sqm completed build) | 0.90 | 1.27 | 1.53 | 1.37 | 1.62 | | Scope 3 emissions | | | | | | | Total scope 3 emissions** (tCO2e) | 1,775,758 | 1,800,612 | 1,977,848 | 2,519,102 | 3,051,378 | | Scope 3 – Category 1 Purchased goods and services (tCO2e) | 861,435 | 884,166 | 908,238 | 1,309,017 | 1,400,568 | | Scope 3 – Category 3 Fuel and energy-related activities (tCO2e) | 3,453 | 4,440 | 4,591 | 4,886 | 5,677 | | Scope 3 – Category 4 Upstream transport and distribution (tCO2e) | 55,195 | 53,434 | 46,064 | 34,351 | 62,283 | | Scope 3 – Category 5 Waste generated in operations (tCO2e) | 12,013 | 11,911 | 18,294 | 15,089 | 17,550 | | Scope 3 – Category 6 Business travel (tCO2e) | 1,988 | 2,023 | 2,087 | 1,553 | 2,647 | | Scope 3 – Category 7 Employee commuting (tCO2e) | 121,196 | 57,312 | 52,521 | 74,348 | 121,655 | | Scope 3 – Category 11 Use of sold goods (tCO2e) | 707,025 | 760,145 | 914,417 | 1,044,293 | 1,404,544 | | Scope 3 – Category 12 End of life treatment of sold products (tCO2e) | 6,819 | 20,366 | 24,627 | 29,166 | 33,798 | | Scope 3 – Category 13 Downstream leased assets (tCO2e) | 6,633 | 6,816 | 7,008 | 6,399 | 2,656 | | Emissions per 100 sqm completed homes (scope 1, 2 and 3) (tCO2e) | 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 (tCO2e) 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 groundwater. 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 CO2e/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 tCO2e in 2025 (2024: 316.67 tCO2e). **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 tCO2e. 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. 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 Strategic report Directors' report Financial statements Shareholder information ← 0 → 66 三 # 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%) | Environment Policy – Outlines our commitment to the environment and incorporates our policies on climate change, nature, waste and resources, sustainable timber and water | More information can be found within: Our environmental impact TCFD 47 to 49 51 to 65 | | • 98.8% (1) waste sent to be diverted from landfill (2024: 97.9%) | Health, Safety and Environmental (HSE) Policy – Outlines our ongoing commitment to continual improvement of our HSE performance | | | • Over 8,800 wildlife enhancements installed on our sites since 2021 (2024: 5,500) | Supply Chain Policy – Sets out our commitment to work with trusted partners and ensure our homes are built using carefully sourced materials | Related Principal Risks: H: Natural resources and climate change G: Health, safety and environment | | • 1,947 (2) number of timber frame homes completed (2024: 1,624) | | | | 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% (3) female representation in GMT and direct reports (2024: 26%) | 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 | More information can be found within: Performance and operational review 41 to 43 | | • 5.6% (4) ethnic representation in GMT and direct reports (2024: 6.9%) | Grievance and Harassment Policy – Ensures that any reports are investigated and addressed appropriately | Stakeholder engagement and Section 172 (1) statement Monitoring our culture 108 to 110 | | • 95% of employees feel proud to work for Taylor Wimpey (2024: 96%) | | Related Principal Risks: D: Attract and retain high-calibre employees | | • 95% of employees feel that they can be themselves at work (2024: 96%) | | | | 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 | More information can be found within: Performance and operational review 41 to 43 | | | 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 | Stakeholder engagement and Section 172 (1) statement 85 | | | Supply Chain Policy | Related Principal Risks: A: Government policies, regulations and planning C: Availability and costs of materials and subcontractors | 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 Strategic report Directors' report Financial statements Shareholder information ← 0 → 67 三 # 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 19 to 20 Performance and operational review 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 (ⓐ) 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 | 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 Strategic report Directors' report Financial statements Shareholder information 68 三 # Risk management ## 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. ## 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. ![img-99.jpeg](img-99.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information # Risk management continued ## 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. ## 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. ![img-100.jpeg](img-100.jpeg) ## 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 70 32 # 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. ### 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 | ## 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. ![img-101.jpeg](img-101.jpeg) ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 71 # Principal Risks and uncertainties ## 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. | Category | Risk change in year | | | | | | --- | --- | --- | --- | --- | --- | | | Inherent risk change in year | Residual risk change in year | Our values | Strategic cornerstones | Sustainability priorities | | 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 | ● | ● | ← ⚙️ ▼ | ▲ | ● | ## 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 ![img-102.jpeg](img-102.jpeg) 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 72 # Principal Risks and uncertainties continued ## A Government policies, regulations and planning | Description | Key mitigations | Example risk indicators | Opportunities | Link to sustainability priorities | Accountability | | --- | --- | --- | --- | --- | --- | | 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. | • 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 | • New Government regulations (e.g. around planning and climate) • Delays in planning • Sentiment towards the industry (e.g. cladding fire safety remediation) | • Environmental impact • Responsible and resilient business | • Group Technical Director • Director of Planning • Regional Managing Directors • Group Cladding Director | | | Inherent risk change in year Residual risk change in year Residual rating Moderate | Risk appetite Low Link to values Link to strategic cornerstones | | | | | ## B Mortgage availability and housing demand | Description | Key mitigations | Example risk indicators | Opportunities | Link to sustainability priorities | Accountability | | --- | --- | --- | --- | --- | --- | | 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. | • 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 | • 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 | • To continue to develop strong working relationships with established mainstream lenders and those wishing to increase volume in the new build market | • Environmental impact • Responsible and resilient business | • UK Sales and Marketing Director • Regional Sales and Marketing Directors | | Inherent risk change in year Residual risk change in year Residual rating Moderate | Risk appetite Low Link to values Link to strategic cornerstones | | | | | Key to our values Key to our strategic cornerstones Key to risk change Respectful and fair Take responsibility Better tomorrow Be proud Land Operational excellence Sustainability Capital allocation Increased risk No change Decreased risk --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 73 # Principal Risks and uncertainties continued | Description | Key mitigations | Example risk indicators | Opportunities | Link to sustainability priorities | Accountability | | --- | --- | --- | --- | --- | --- | | 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. | • 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 | • 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 | • To develop and implement different build methods as alternatives to conventional brick and block | • Supply chain partners | • Supply Chain Director • Procurement Director • Group Commercial Director | | Inherent risk change in year Residual risk change in year Residual rating Moderate | Risk appetite Low-moderate Link to values Link to strategic cornerstones | | | | | | Description | Key mitigations | Example risk indicators | Opportunities | Link to sustainability priorities | Accountability | | --- | --- | --- | --- | --- | --- | | 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. | • 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 | • Employee engagement score • Number of, and time to fill, vacancies • Employee turnover levels | • To further develop in-house capability, expertise and knowledge | • Our people | • Group HR Director • Every employee managing people | | Inherent risk change in year Residual risk change in year Residual rating Low | Risk appetite Moderate Link to values Link to strategic cornerstones | | | | | Key to our values Key to our strategic cornerstones Key to risk change Respectful and fair Take responsibility Better tomorrow Be proud Land Operational excellence Sustainability Capital allocation Increased risk No change Decreased risk --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] ^{}[] 74 ^{}[] # Principal Risks and uncertainties continued | 1 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. | 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 | | | Inherent risk change in year • Residual risk change in year • Residual rating Low | Risk appetite Moderate Link to values • Link to strategic cornerstones | | | | | | | 2 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. | 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 | | | Inherent risk change in year • Residual risk change in year • Residual rating Moderate | Risk appetite Low Link to values • Link to strategic cornerstones | | | | | | Key to our values Key to our strategic cornerstones Key to risk change Respectful and fair Take responsibility Better tomorrow Be proud Land Operational excellence Sustainability Capital allocation Increased risk No change Decreased risk --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] 75 ^{}[] # Principal Risks and uncertainties continued | Description | Key mitigations | Example risk indicators | Opportunities | Link to sustainability priorities | Accountability | | --- | --- | --- | --- | --- | --- | | 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. | • 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 | • 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 | • To lead the industry in health and safety and to reduce the amount and level of incidents | • Offices • Governance | • Head of Health, Safety and Environment • Regional Managing Directors | | **Inherent risk change in year** Residual risk change in year Residual rating Low | Risk appetite Low Link to values Link to strategic cornerstones | | | | | | Description | Key mitigations | Example risk indicators | Opportunities | Link to sustainability priorities | Accountability | | --- | --- | --- | --- | --- | --- | | 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. | • 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 | • Energy use and greenhouse gas emissions • Biodiversity net gain % • Construction waste generation and waste to landfill | • Sustainable homes and developments attractive to customers • A sustainable business of choice for investors • Advantageous planning positions | • Homes and places • Environmental impact • Responsible and resilient business | • Group Communities Director • Regional Managing Directors | | **Inherent risk change in year** Residual risk change in year Residual rating Moderate | Risk appetite Low Link to values Link to strategic cornerstones | | | | | Key to our values Key to our strategic cornerstones Key to risk change Respectful and fair Take responsibility Better tomorrow Be proud Land Operational excellence Sustainability Capital allocation Increased risk No change Decreased risk --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] ^{}[] 76 ^{}[] # Principal Risks and uncertainties continued ## 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 ![img-103.jpeg](img-103.jpeg) ![img-104.jpeg](img-104.jpeg) Key to our values Respectful and fair Take responsibility Better tomorrow Be proud Land Operational excellence Sustainability Capital allocation Key to risk change Increased risk No change Decreased risk --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 77 三 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 ![img-105.jpeg](img-105.jpeg) # 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) # 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%). 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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 78 # Group financial review continued 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). # £23.5m Pension contributions (2024: £22.1m) # £85.2m Taxes (2024: £132.1m) ![img-106.jpeg](img-106.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 79 # Group financial review continued ## 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). 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). ![img-107.jpeg](img-107.jpeg) > 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 ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 80 # 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 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. ![img-108.jpeg](img-108.jpeg) ## 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. ![img-109.jpeg](img-109.jpeg) * 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 Strategic report Directors' report Financial statements Shareholder information ← 0 → 81 三 # 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. ![img-110.jpeg](img-110.jpeg) ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 82 # Viability statement ## 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) ![img-111.jpeg](img-111.jpeg) --- 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 developmentsAverage selling prices achievedBuild costs and cost of land acquisitionsWorking capital requirementsCapital 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 84 Stakeholder engagement and Section 172 (1) statement # 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. 1. Read more about stakeholder engagement and climate change on page 53 ![img-112.jpeg](img-112.jpeg) # Our customers ![img-113.jpeg](img-113.jpeg) 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 1. Homes and places 2. Environmental impact 3. Responsible and resilient business ## Relevant KPIs - HBF customer satisfaction score - Construction Quality Review - Average reportable items per inspection ## Strategic cornerstones 1. Land 2. Operational excellence 3. Sustainability --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ → 85 # Stakeholder engagement and Section 172 (1) statement continued ## Our employees ![img-114.jpeg](img-114.jpeg) 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 ## Our partners ![img-115.jpeg](img-115.jpeg) 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 ![img-116.jpeg](img-116.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 86 # Stakeholder engagement and Section 172 (1) statement continued ## Our investors ![img-117.jpeg](img-117.jpeg) 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 communities ![img-118.jpeg](img-118.jpeg) 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 ![img-119.jpeg](img-119.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 87 # 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. ![img-120.jpeg](img-120.jpeg) | Section 172 (1) factor | Relevant disclosure | Page | | --- | --- | --- | | A. The likely consequences of any decision in the long term | Our business model | 21 to 28 | | | Market trends, opportunities and risks | 36 and 37 | | | Our commitment to the environment | 47 to 49 | | | | | | B. The interests of the company's employees | Our business model | 21 to 28 | | | Monitoring our culture | 108 to 110 | | | Performance and operational review | 41 to 43 | | | Stakeholder engagement and Section 172 (1) statement | 84 to 89 | | | | | | C. The need to foster the company's business relationships with suppliers, customers and others | Our business model | 21 to 28 | | | Market trends, opportunities and risks | 36 and 37 | | | Principal Risks and uncertainties | 71 to 76 | | | Performance and operational review | 40 to 41 | | | Stakeholder engagement and Section 172 (1) statement | 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 | 21 to 28 | | | Our sustainability framework | 46 | | | Our commitment to the environment | 47 to 49 | | | Task Force on Climate-related Financial Disclosures | 51 to 65 | | | Stakeholder engagement and Section 172 (1) statement | 84 to 89 | | | | | | E. The desirability of the company maintaining a reputation for high standards of business conduct | Our business model | 21 to 28 | | | Task Force on Climate-related Financial Disclosures | 51 to 65 | | | Non-financial and sustainability information statement | 66 and 67 | | | Risk management | 68 to 70 | | | Audit Committee report | 120 to 128 | | F. The need to act fairly as between members of the company | Our business model | 21 to 28 | | | Stakeholder engagement and Section 172 (1) statement | 84 to 89 | | | Engaging with our shareholders | 106 and 107 | | | Remuneration Committee report | 129 to 158 | | | | | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 88 # Stakeholder engagement and Section 172 (1) statement continued ## Board decision: Approval of medium term strategy and targets ## 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 landmark to increase sales outlets to grow our volumes and profits. We are also targeting a reduction in landmark 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 landmark 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. ![img-121.jpeg](img-121.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information # Stakeholder engagement and Section 172 (1) statement continued ## Board decision: Approval of new environmental objectives and 2026 environmental targets ## 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. The 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. ![img-122.jpeg](img-122.jpeg) 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] ^{}[] 90 # Directors' report ## 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 ![img-123.jpeg](img-123.jpeg) ## 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 ➀ Read more on pages 120 to 128 ![img-124.jpeg](img-124.jpeg) ## 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 ➀ Read more on pages 111 to 119 ![img-125.jpeg](img-125.jpeg) ## 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 ➀ Read more on pages 129 to 158 ![img-126.jpeg](img-126.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 91 # Governance at a glance ## Board overview ### 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. ### Chair and Non Executive Director tenure ![img-127.jpeg](img-127.jpeg) ### 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. 1. Read more on pages 100 and 101 ### 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 | ### Board roles ![img-128.jpeg](img-128.jpeg) ### Board age diversity ![img-129.jpeg](img-129.jpeg) ### Independence (excluding the Chair) ![img-130.jpeg](img-130.jpeg) ### Empowerment ![img-131.jpeg](img-131.jpeg) ### Ethnicity ![img-132.jpeg](img-132.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← ❤ → 92 # Board of Directors # A diverse set of skills and relevant industry experience Robert Noel Chair N R ![img-133.jpeg](img-133.jpeg) 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 # Key A Audit Committee R Remuneration Committee N Nomination and Governance Committee Committee Chair Jennie Daly CBE Chief Executive ![img-134.jpeg](img-134.jpeg) 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 Chris Carney Group Finance Director ![img-135.jpeg](img-135.jpeg) 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 93 三 # Board of Directors continued ## Mark Castle Independent Non Executive Director ![img-136.jpeg](img-136.jpeg) ## Martyn Coffey Independent Non Executive Director ![img-137.jpeg](img-137.jpeg) ## Irene Dorner Non-independent Non Executive Director ![img-138.jpeg](img-138.jpeg) ## Dated of appointment Appointed as a Non Executive Director on 1 December 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 ## Key A Audit Committee R Remuneration Committee N Nomination and Governance Committee Committee Chair ## 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 - 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 ## Lord Jitesh Gadhia Senior Independent Director ![img-139.jpeg](img-139.jpeg) ## 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 Calsen 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information # Board of Directors continued ## Scilla Grimble Independent Non Executive Director ![img-140.jpeg](img-140.jpeg) A N **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 ## Clodagh Moriarty Independent Non Executive Director ![img-141.jpeg](img-141.jpeg) N R **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 ## Ishaq Kayani Group General Counsel and Company Secretary ![img-142.jpeg](img-142.jpeg) **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 ![img-143.jpeg](img-143.jpeg) ## Key A Audit Committee R Remuneration Committee N Nomination and Governance Committee Committee Chair ![img-144.jpeg](img-144.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 95 # 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. ![img-145.jpeg](img-145.jpeg) Jennie Daly CBE Chief Executive ![img-146.jpeg](img-146.jpeg) Chris Carney Group Finance Director ![img-147.jpeg](img-147.jpeg) Anne Billson-Ross Group Human Resources Director 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 Kayani Group General Counsel and Company Secretary ![img-148.jpeg](img-148.jpeg) Maria Sebastian Group Customer Experience Director ![img-149.jpeg](img-149.jpeg) Novraj Sidhu Divisional Chair, Central and South West ![img-150.jpeg](img-150.jpeg) Shaun White Divisional Chair, Midlands and Wales ![img-151.jpeg](img-151.jpeg) Ian Drummond Divisional Chair, Scotland, North East and North Yorkshire ![img-152.jpeg](img-152.jpeg) Ian joned 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. 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. ![img-153.jpeg](img-153.jpeg) Lee Bishop Group Managing Director, Strategic Land and Divisional Chair, North West and Yorkshire 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. 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 96 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. ![img-154.jpeg](img-154.jpeg) 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 whilst 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. ![img-155.jpeg](img-155.jpeg) # Robert Noel Chair --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 97 # Our governance structure 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's Committees | | | | --- | --- | --- | --- | | The Board is collectively responsible for promoting the long term sustainable success of the Group and generating value for shareholders and other stakeholders. | **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. ① Read more on pages 120 to 128 | **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. ① 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. ① Read more on pages 129 to 158 | | Chief Executive | GMT | | | | Our Chief Executive is responsible for developing and implementing strategy and has ultimate responsibility for day to day operations. | 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 comprised¹ the Group Finance Director, Group HR Director, Group General Counsel and Company Secretary, Group Managing Director Strategic Land and the Divisional Chairs. | | | | Supporting Committees | | | | | | **Reporting to the Board** • Treasury Committee • Disclosure Committee | **Reporting to the GMT** • Operational Management Team • IT Steering Committee • Land Strategy Committee • Environmental Governance Group | | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] ^{}[] 98 ^{}[] ^{}[] # Division of responsibilities 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. ## 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 ## Non Executive Directors ### 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 ![img-156.jpeg](img-156.jpeg) ### 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 ## 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 99 # 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. ![img-157.jpeg](img-157.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 100 # 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. | | 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. | | 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. | | 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. | | 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. | | **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. | | 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. | | 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. | | 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. | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 101 # 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. | | 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. | | 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. | | **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. | | 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. | | 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. | | **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. | | 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. | | 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. | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 102 # Strategic focus in 2025 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. ![img-158.jpeg](img-158.jpeg) # 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. 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 103 Strategic focus in 2025 continued # Unlocking value Operational levers in place to drive efficiency with an experienced management team to deliver. 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. 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 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™ 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. ![img-159.jpeg](img-159.jpeg) ![img-160.jpeg](img-160.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 104 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. 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. Medium term targets 16–18% Group adjusted operating profit margin >20% Group return on net operating assets 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: ![img-161.jpeg](img-161.jpeg) Maintain low adjusted gearing to reflect cyclical nature of the industry ![img-162.jpeg](img-162.jpeg) Focus on funding business needs, including land investment and WIP to drive growth ![img-163.jpeg](img-163.jpeg) Sustainable and flexible shareholder distribution ![img-164.jpeg](img-164.jpeg) Return excess cash ![img-165.jpeg](img-165.jpeg) 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategies & Practices Special statements 105 Board in action # Our highlights during 2025 ## 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 ## 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 ![img-166.jpeg](img-166.jpeg) ## 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 ![img-167.jpeg](img-167.jpeg) ## 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 ## 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 ## 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 ## 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 106 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 ![img-168.jpeg](img-168.jpeg) - 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 ![img-169.jpeg](img-169.jpeg) * 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. ![img-170.jpeg](img-170.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 107 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. Q How are you maximising performance given a challenging market backdrop? A 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. Q How do you ensure you have sufficient capital to grow whilst paying a dividend at this level? A 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. Q Other large homebuilders have multiple brands, why does Taylor Wimpey only have one? A 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 108 Monitoring our culture # 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 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. # Our values | Take responsibility | Be proud | | --- | --- | | Better tomorrow | Respectful and fair | # 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. ![img-171.jpeg](img-171.jpeg) 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 109 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. ![img-172.jpeg](img-172.jpeg) > “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 ## 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. 1. Read more on page 105 to see a sample agenda for one of the visits that took place in our North East regional business ![img-173.jpeg](img-173.jpeg) ![img-174.jpeg](img-174.jpeg) ## 24 visits during the year (2024: 25) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 110 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 ![img-175.jpeg](img-175.jpeg) 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. > “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 ## 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. ## 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. 1. Read more about this on pages 135 and 136 ![img-176.jpeg](img-176.jpeg) ## 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. ![img-177.jpeg](img-177.jpeg) 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 111 # Nomination and Governance Committee report ![img-178.jpeg](img-178.jpeg) "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 # 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Share of information 112 # 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 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. # 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 ![img-179.jpeg](img-179.jpeg) # 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 # 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 113 # 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. ![img-180.jpeg](img-180.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 114 # Nomination and Governance Committee report continued ## Non Executive Director appointment and induction process 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. ![img-181.jpeg](img-181.jpeg) ## Appointment 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. ![img-182.jpeg](img-182.jpeg) ## Induction process 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 115 # 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. ![img-183.jpeg](img-183.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 116 Nomination and Governance Committee report continued ## 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. ![img-184.jpeg](img-184.jpeg) 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. | ![img-185.jpeg](img-185.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ^{}[] ^{}[] ^{}[] 117 # 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. ![img-186.jpeg](img-186.jpeg) | 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. | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 118 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 Strategic report Directors' report Financial statements Shareholder information 119 # Nomination and Governance Committee report continued ## 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'. ![img-187.jpeg](img-187.jpeg) 27% $^{\text{①}}$ female representation in GMT and direct reports (%) 24% female representation in early entry talent – graduates (%) 5.6% $^{\text{①}}$ ethnic representation in GMT and direct reports (%) 24% ethnic representation in early entry talent – graduates (%) $^{\text{①}}$ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). Read more on page 50. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 120 Audit Committee report ![img-188.jpeg](img-188.jpeg) "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 # 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. ![img-189.jpeg](img-189.jpeg) # 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 121 Audit Committee report continued ## 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 ## 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 ## 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. ## 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. ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information # 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 | 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 | for the Group's financial year commencing on 1 January 2026. | 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. | | --- | --- | --- | | 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 | 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 | | | Gain assurance that Innovate^{TM} projects are progressed through a robust framework | arrangements. In addition, the Committee received regular reports from the IT Director on the status of key IT projects. During 2025, Innovate^{TM} 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. | | --- | --- | --- | | 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^{TM} projects and an assessment of the operational effectiveness of the | | | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 123 回 # Audit Committee report continued ## Internal control framework The overall structure of the Group's internal controls and assurance processes are as set out below: ### The Board - 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 ### Audit Committee - 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 ### GMT - Consider and, if appropriate, approve matters requiring prior approval under the Operating Framework - Monitor adherence to the Operating Framework and detailed process manuals ### Detailed process manuals - Relating to the operation of the main functions of the Group - Support the Operating Framework at a more granular level of detail ### Operating framework - 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 ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 124 # 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. ![img-190.jpeg](img-190.jpeg) # 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 to 76. 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 Strategic report Directors' report Financial statements Shareholder information ← 125 # 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. ![img-191.jpeg](img-191.jpeg) --- 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 forecastingCladding 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 processThe Committee considered the nature and extent of the non‐audit work performed by PwC during the yearThe Committee considered whether PwC had appropriately challenged management's estimates and judgementsThe Committee reviewed the latest external report on PwC issued by the FRCThe 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 statementsNon‐audit limited assurance procedures over 14 select ESG metricsMaking available access to its subscription service providing online technical resources such as factual updates and changes to applicable law, regulation, and accounting and auditing standardsProviding 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 Strategic report Directors' report Financial statements Shareholder information 127 # 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 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. ## 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. | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 128 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. ![img-192.jpeg](img-192.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 129 # Remuneration Committee report ![img-193.jpeg](img-193.jpeg) "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 ## 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 | ## 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 ## 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 ## 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 ## 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 ![img-194.jpeg](img-194.jpeg) ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 130 # Remuneration Committee report continued 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 131 # Remuneration Committee report continued ## 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 profit¹ and operating profit margin¹, 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 margin¹ 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. 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 132 # Remuneration Committee report continued ## 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. ![img-195.jpeg](img-195.jpeg) ## 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 133 三 Remuneration Committee report continued # Remuneration at a glance in 2025 ## 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%) ## Elements of Executive Director remuneration ![img-196.jpeg](img-196.jpeg) ## Pay timeline (years) ![img-197.jpeg](img-197.jpeg) ![img-198.jpeg](img-198.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 134 # Remuneration Committee report continued ## 2025 EIS outcome: 53% ![img-199.jpeg](img-199.jpeg) - Operating profit - Operating profit margin - Cash conversion - Build quality - Customer service 8-week ## 2023 PSP Award outcome: 70% ![img-200.jpeg](img-200.jpeg) - TSR vs peer group - Operating profit margin - RONOA - Customer service 9-month - Carbon reduction ## Share ownership level against shareholding target as at 31 December 2025 ![img-201.jpeg](img-201.jpeg) - Shareholding level - Shareholding target # 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 Strategic report Directors' report Financial statements Shareholder information # 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: 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 ![img-202.jpeg](img-202.jpeg) The Committee Chair attended the NEF in January 2026 to provide an overview of the Executive Directors' Remuneration Policy Read more on page 132 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 136 # Remuneration Committee report continued ## 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. ![img-203.jpeg](img-203.jpeg) ## Executive Directors, GMT and senior management - Salary increases are normally aligned with the average percentage increase for the wider workforce - Pension contributions are aligned with the wider workforce - 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 - Eligibility to participate in long term incentive plans and the all-employee share schemes - Executive Directors, GMT and senior management 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 ![img-204.jpeg](img-204.jpeg) ## Wider workforce - 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 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 - All employees are eligible for a bonus. Performance measures are aligned with strategy, values and culture - 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 - 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) - 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 employees with over one year of qualifying service --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 137 # 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. ## 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%) ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 138 # 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 Strategic report Directors' report Financial statements Shareholder information 139 # 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) - Lower quartile to median - Median to upper quartile - Taylor Wimpey – proposed - Taylor Wimpey – current ![img-205.jpeg](img-205.jpeg) ## Group Finance Director total maximum remuneration vs FTSE peers (£000)a) - Lower quartile to median - Median to upper quartile - Taylor Wimpey – proposed - Taylor Wimpey – current ![img-206.jpeg](img-206.jpeg) (a) The FTSE peer group is the 20 FTSE-listed companies immediately higher and 20 immediately lower than Taylor Wimpey's current market capitalisation. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 140 # 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 Strategic report Directors' report Financial statements Shareholder information 141 # Remuneration Committee report continued ## 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. ## 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. ![img-207.jpeg](img-207.jpeg) 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 142 # Remuneration Committee report continued ## 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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information ← 143 # 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. | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 144 # 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. --- 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 146 # 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 Strategic report Directors' report Financial statements Shareholder information ← 147 # 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. | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 148 Remuneration Committee report continued # Annual Report on Directors' Remuneration 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 | 2025 | 35% | 25% | 40% | £2,687 | | --- | --- | --- | --- | --- | --- | | | 2024 | 31% | 30% | 30% | £2,851 | | Chris Carney Group Finance Director | 2025 | 35% | 25% | 40% | £1,782 | | ■ Fixed pay | 2024 | 31% | 40% | 29% | £1,911 | | ■ EIS | | | | | | | ■ PSP | £0 | £500 | £1,000 | £1,500 | £2,000 | # 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 | | PSD(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. --- Taylor Wimpey plc Annual Report and Accounts 2025 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 Shareware 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. | Performance measure | Weighting | Entry (10%) | Target (50%) | Stretch (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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 150 # 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. | Performance measure | Weighting | Threshold (20%) | Maximum (100%) | Actual | Outcome | | --- | --- | --- | --- | --- | --- | | TSR vs homebuilder peer group(a) | 40% | Median | Upper quartile | Taylor Wimpey: 33.4% | 40% | | | | | | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 151 # 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 shares granted | Value of award at grant (£000) | End of performance period | % of award vesting | Number of shares vesting | Number of dividend equivalent shares | Total number of shares | Vesting date | Value attributable to share price increase (£000) | Value of proportion of PSP (single figure) (£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. | Executive Director | Award type | % of salary | Grant date | Face value of award at maximum vesting | Number of shares granted | % of award vesting if threshold performance achieved | End of performance 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). --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 152 # Remuneration Committee report continued | Performance measure | Rationale | Weighting | Threshold (25%) | Maximum (100%) | | --- | --- | --- | --- | --- | | TSR vs homebuilder peer group(a) | Align the rewards received by executives with the returns received by shareholders | 40% | Median | Upper quartile | | Operating profit margin in 2027(b) | Optimise sales prices and improve cost discipline | 15% | 12% | 15% | | RONOA in 2027 | Maintain focus on driving increased capital efficiency | 15% | 12% | 15% | | Customer service performance in 2025 to 2027(c) | Maintain customer trust and endorse Company reputation | 15% | 12.55 | 12.58 | | Carbon reduction in 2027 (from a 2019 baseline)(d) | Support the Board's strategy on carbon emissions reductions across our operations | 15% | 36% | 44% | (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: | Director | Maximum potential shares as at 01/01/2025 | Additional maximum potential shares awarded during the year | Exercised/ released during the year | Lapsed during the year | Maximum potential shares as at 31/12/2025(e) | | --- | --- | --- | --- | --- | --- | | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 153 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. | Role | As at 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. | Director | Beneficially owned | | Outstanding interests in share schemes | | Value of beneficially owned shares as at 31/12/2025 | Share interests expressed as a % of salary(c) | | --- | --- | --- | --- | --- | --- | --- | | | at 01/01/2025 | at 31/12/2025(a) | PSP(a) | Sharesave | | | | Robert Noel | 332,872 | 332,872 | | | | | | Jennie Daly(c) | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 154 # Remuneration Committee report continued ## 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. ![img-208.jpeg](img-208.jpeg) TSR versus Chief Executive total single figure ![img-209.jpeg](img-209.jpeg) | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 155 # Remuneration Committee report continued ## CEO pay ratio | Year | Method | Chief Executive 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 156 # 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(c) | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 157 # 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. | Executive Director | As at 1 April 2025 | As at 1 April 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. | Performance measure | Weighting | Threshold (25%) | Maximum (100%) | | --- | --- | --- | --- | | TSR vs homebuilder peer group(a) | 40% | Median | Upper 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 158 # 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 for 2024 (2025 AGM) | 1,487,477,643 | 525,355,936 | 2,012,833,579 | 12,485,365 | | | 73.90% | 26.10% | | | | Directors' Remuneration Policy (2023 AGM) | 2,155,740,993 | 195,311,797 | 2,351,052,790 | 453,054 | | | 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 4 March 2026 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 159 # 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 160 # 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. --- 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 prudentPrepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Company will continue in business --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 162 # 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: [Signature] Ishaq Kayani Group General Counsel and Company Secretary 4 March 2026 --- Taylor-Wimpey plc Annual Report and Accounts 2020 Strategic report Directors' report Financial statements Shareholder information ← 163 三 # Financial statements ![img-210.jpeg](img-210.jpeg) ## 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 | ![img-211.jpeg](img-211.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 164 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. --- 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; andto 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; andwe 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 166 # Independent auditors’ report to the members of Taylor Wimpey plc continued ## 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. ## How our audit addressed the key audit matter 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 Strategic report Directors' report Financial statements Shareholder information 167 33 # Independent auditors’ report to the members of Taylor Wimpey plc continued ## 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. ## How our audit addressed the key audit matter 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 168 # Independent auditors’ report to the members of Taylor Wimpey plc continued ## 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. ## 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. ## How our audit addressed the 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. 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 Strategic report Directors' report Financial statements Shareholder information 169 # 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. --- 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; andWe 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. --- 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; andThe 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; andThe 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 --- Independent auditors' report to the members of Taylor Wimpey plc continued 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; andperformance 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; oradequate 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; orcertain disclosures of Directors' remuneration specified by law are not made; orthe 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 --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 173 # 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 | 3,844.6 | - | 3,844.6 | 3,401.2 | - | 3,401.2 | | Cost of sales | | (3,186.2) | - | (3,186.2) | (2,752.5) | - | (2,752.5) | | Gross profit | | 658.4 | - | 658.4 | 648.7 | - | 648.7 | | Net operating expenses | 6 | (239.9) | (243.8) | (483.7) | (232.3) | (82.5) | (314.8) | | Profit on ordinary activities before financing | | 418.5 | (243.8) | 174.7 | 416.4 | (82.5) | 333.9 | | Finance income | 8 | 12.1 | - | 12.1 | 29.7 | - | 29.7 | | Finance costs | 8 | (38.5) | (3.9) | (42.4) | (27.4) | - | (27.4) | | Share of results of joint ventures | 13 | 2.1 | - | 2.1 | (0.2) | (15.7) | (15.9) | | Profit before taxation | | 394.2 | (247.7) | 146.5 | 418.5 | (98.2) | 320.3 | | Taxation (charge)/credit | 9 | (111.6) | 65.5 | (46.1) | (120.9) | 20.2 | (100.7) | | Profit for the year | | 282.6 | (182.2) | 100.4 | 297.6 | (78.0) | 219.6 | | | | | | | Note | 2025 | 2024 | | Basic earnings per share | | | | | 10 | 2.8p | 6.2p | | Diluted earnings per share | | | | | 10 | 2.8p | 6.2p | | Adjusted basic earnings per share | | | | | 10 | 8.0p | 8.4p | | Adjusted diluted earnings per share | | | | | 10 | 8.0p | 8.4p | 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 Strategic report Directors' report Financial statements Shareholder information 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 | 8.2 | (8.8) | | Movement in fair value of hedging instruments | 25 | (4.3) | 3.9 | | Items that will not be reclassified subsequently to profit or loss: | | | | | Actuarial gain on defined benefit pension schemes | 21 | 1.0 | 1.4 | | Tax charge on items taken directly to other comprehensive income | 14 | (0.3) | (0.4) | | Other comprehensive income/(expense) for the year | | 4.6 | (3.9) | | Profit for the year | | 100.4 | 219.6 | | Total comprehensive income for the year | | 105.0 | 215.7 | All of the comprehensive income for both years is attributable to the equity holders of the Parent Company. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 175 # Consolidated balance sheet at 31 December 2025 | | Note | 2025 £m | 2024 £m | | --- | --- | --- | --- | | Non-current assets | | | | | Intangible assets | 11 | 2.7 | 1.5 | | Property, plant and equipment | 12 | 23.1 | 21.9 | | Right-of-use assets | 19 | 34.6 | 35.9 | | Interests in joint ventures | 13 | 26.6 | 26.9 | | Trade and other receivables | 16 | 26.7 | 14.9 | | Other financial assets | 21 | 11.3 | 10.8 | | Deferred tax assets | 14 | 25.6 | 20.6 | | | | 150.6 | 132.5 | | Current assets | | | | | Inventories | 15 | 5,271.4 | 5,376.6 | | Trade and other receivables | 16 | 205.6 | 130.4 | | Tax receivables | | 8.9 | 4.4 | | Cash and cash equivalents | 16 | 429.6 | 647.4 | | | | 5,915.5 | 6,158.8 | | Total assets | | 6,066.1 | 6,291.3 | | 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 | | 4,722.6 | 4,901.2 | | 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 | | 4,186.8 | 4,405.2 | | | Note | 2025 £m | 2024 £m | | --- | --- | --- | --- | | Equity | | | | | Share capital | 23 | 291.3 | 291.3 | | Share premium | 24 | 777.9 | 777.9 | | Own shares | 26 | (20.2) | (27.6) | | Other reserves | 25 | 543.4 | 539.5 | | Retained earnings | | 2,594.4 | 2,824.1 | | Total equity | | 4,186.8 | 4,405.2 | The consolidated financial statements of Taylor Wimpey plc (registered number: 296805) were approved by the Board of Directors and authorised for issue on 4 March 2026. They were signed on its behalf by: ![img-212.jpeg](img-212.jpeg) --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 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 | | 291.3 | 777.9 | (29.7) | 544.4 | 2,939.5 | 4,523.4 | | Other comprehensive (expense)/income for the year | | - | - | - | (4.9) | 1.0 | (3.9) | | Profit for the year | | - | - | - | - | 219.6 | 219.6 | | Total comprehensive (expense)/income for the year | | - | - | - | (4.9) | 220.6 | 215.7 | | Own shares acquired | 26 | - | - | (4.0) | - | - | (4.0) | | Utilisation of own shares | 26 | - | - | 6.1 | - | - | 6.1 | | Cash cost of satisfying share options | | - | - | - | - | (5.4) | (5.4) | | Share-based payment credit | 29 | - | - | - | - | 9.2 | 9.2 | | 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 | | 291.3 | 777.9 | (27.6) | 539.5 | 2,824.1 | 4,405.2 | | Other comprehensive income for the year | | - | - | - | 3.9 | 0.7 | 4.6 | | Profit for the year | | - | - | - | - | 100.4 | 100.4 | | Total comprehensive income for the year | | - | - | - | 3.9 | 101.1 | 105.0 | | Own shares acquired | 26 | - | - | (3.3) | - | - | (3.3) | | Utilisation of own shares | 26 | - | - | 10.7 | - | - | 10.7 | | Cash cost of satisfying share options | | - | - | - | - | (9.0) | (9.0) | | Share-based payment credit | 29 | - | - | - | - | 8.9 | 8.9 | | 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 | | 291.3 | 777.9 | (20.2) | 543.4 | 2,594.4 | 4,186.8 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 177 # Consolidated cash flow statement for the year to 31 December 2025 | | Note | 2025 £m | 2024 £m | | --- | --- | --- | --- | | Profit on ordinary activities before financing | | 174.7 | 333.9 | | Adjustments for: | | | | | Depreciation and amortisation | | 15.7 | 14.3 | | Pension contributions in excess of charge to the income statement | | (4.3) | (4.0) | | Share-based payment charge | | 8.9 | 9.2 | | Loss on disposal of assets | | - | 14.5 | | Increase in provisions excluding exceptional payments | | 249.8 | 53.9 | | Operating cash flows before movements in working capital | | 444.8 | 421.8 | | Increase in inventories | | (14.8) | (86.8) | | (Increase)/decrease in receivables | | (53.6) | 3.8 | | Decrease in payables | | (108.4) | (27.1) | | Cash generated from operations | | 268.0 | 311.7 | | 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 | | 133.2 | 164.9 | | Investing activities | | | | | Interest received | 8 | 12.0 | 28.1 | | Proceeds on disposal of property, plant and equipment | | - | 0.1 | | Purchase of property, plant and equipment | 12 | (4.2) | (3.4) | | Purchase of intangible assets | 11 | (2.5) | - | | Proceeds on disposal of joint venture | | - | 18.5 | | Amounts (invested in)/received from joint ventures | | (15.8) | 30.6 | | Net cash (used in)/generated from investing activities | | (10.5) | 73.9 | | | Note | 2025 £m | 2024 £m | | --- | --- | --- | --- | | Financing activities | | | | | Lease capital repayments | 19 | (11.6) | (9.6) | | Cash received on exercise of share options | | 1.7 | 0.7 | | Purchase of own shares | 26 | (3.3) | (4.0) | | Repayment of borrowings | 20 | (175.0) | - | | Proceeds from borrowings | 20 | 175.0 | - | | 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 | | 647.4 | 764.9 | | Effect of foreign exchange rate changes | | 3.1 | (4.0) | | Cash and cash equivalents at end of year | 27 | 429.6 | 647.4 | --- Notes to the consolidated financial statements ## Material accounting policies ### Basis of preparation 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 stated, are set out below. ### Adoption of new and revised standards 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: IAS 21 ‘The Effects of Changes in Foreign Exchange Rates' (amendments) -- lack of exchangeability At the date of authorisation of these consolidated financial statements, the Group has not applied the 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 11IFRS 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 listed above will have a material impact on the consolidated financial statements of the Group. ### Going concern 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 2028Price -- a reduction to current selling prices of 10%, remaining at these levels across 2026 and 2027 before recovering to current levels by 2028One‐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 have been prepared on a going concern basis. ### Basis of accounting The consolidated financial statements have been prepared in accordance with UK‐adopted international accounting standards as applied in conformity with the provisions of the Companies Act 2006. --- Notes to the consolidated financial statements continued ## Material accounting policies continued ### Basis of consolidation 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; andHas 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 Group. All intra-Group transactions, balances, income and expenses are eliminated on consolidation. ### Joint ventures 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 and the Group's net investment in that joint venture at the point of disposal. ### Segmental reporting 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 KingdomSpain ### Revenue 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: ### 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 received or receivable on legal completion. --- Notes to the consolidated financial statements continued ## Material accounting policies continued ### b. Long term contracts 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 purchase price offered to the acquirer and are therefore accounted for as a reduction to revenue. ### Cost of sales 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 to a particular plot, in which case they are recognised in the income statement at the point of sale. ### Exceptional items 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 items be reversed, disclosure of this would also be as exceptional items. ### Finance income 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. ### Finance costs 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 which they arise. ### Foreign currencies 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 balance sheet date. --- Notes to the consolidated financial statements continued ## Material accounting policies continued Non‐monetary assets and liabilities carried at fair value that are denominated in foreign currencies are 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 overseas subsidiaries. ### Leases ### 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; andThe 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 termination option. Right‐of‐use assets are initially measured at cost, comprising the initial measurement of the lease liability 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 liabilities, depending on the length of the lease term. ### Intangible assets ### 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 amortisation and any accumulated impairment losses. ### Property, plant and equipment 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. Plant and equipment is stated at cost less accumulated depreciation. 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 annumLeasehold improvements: over the term of the lease 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. This difference is recognised in the income statement. --- Notes to the consolidated financial statements continued ## Material accounting policies continued ### Impairment of tangible and intangible assets 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 recognised as income immediately in the income statement. ### Dividends paid Dividends are charged to retained earnings 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 final dividend. ### Financial instruments ### Financial assets Financial assets are initially recognised at fair value and subsequently classified into one of the following measurement categories:Measured at amortised costMeasured 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. The Group currently has no financial assets measured at FVOCI. ### Trade and other receivables Trade and other receivables are measured at amortised cost, less any loss allowance. ### Shared equity loans 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 income statement within net operating expenses. ### Cash and cash equivalents 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 in value. ### Financial liabilities Financial liabilities are initially recognised at fair value and subsequently classified into one of the following measurement categories:Measured at amortised costMeasured 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 measured at FVTPL. --- Notes to the consolidated financial statements continued ## Material accounting policies continued ### Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred and subsequently measured at amortised cost. ### Trade and other payables 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 repayment is due more than one year after initial recognition, or the impact is material. ### Customer deposits Customer deposits, measured at amortised cost, are recorded as a liability on receipt and released to the income statement as revenue upon legal completion. ### Equity instruments 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 proceeds are received, net of direct issue costs. ### Derivative financial instruments and hedge accounting 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 comprehensive income is transferred to the income statement for the period. ### Provisions 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 balance sheet date and are discounted to present value where the effect is material. ### Inventories 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 and written off to the income statement when it is probable that the option will not be exercised. ### Taxation The tax charge represents the sum of the tax currently payable and deferred tax. ### Current 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 enacted at the balance sheet date. --- Notes to the consolidated financial statements continued ## Material accounting policies continued ### Deferred tax 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 foreseeable future. Deferred tax is measured on a non‐discounted basis using the tax rates and laws that have been 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 deferred tax is also dealt with in other comprehensive income or equity. ### Share‐based payments 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 vest after adjusting for the effect of non‐market vesting conditions. ### Employee benefits 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. Payments to defined contribution schemes are charged as an expense as they fall due. --- 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 scheme, along with sensitivities of the liabilities to changes in these assumptions. ### Other sources of estimation uncertainty ### 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 estimates made. ## General information Taylor Wimpey plc is a public company limited by shares, incorporated and domiciled in the United Kingdom under the Companies Act and is registered in England and Wales. The Company's registered office is Taylor Wimpey plc, Gate House, Turnpike Road, High Wycombe, Buckinghamshire, HP12 3NR. The nature of the Group's operations and its principal activities are set out in the Strategic Report on pages 3 to 89. These consolidated financial statements are presented in pounds Sterling as the currency of the primary economic environment in which the Group operates. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 186 # Notes to the consolidated financial statements continued ## 4 Revenue An analysis of the Group's continuing revenue is as follows: | | 2025 £m | 2024 £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 £m | 2024 £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), of which approximately 45% is expected to be recognised as revenue during 2026. ## 5 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 £m | Spain £m | Total £m | UK £m | Spain £m | Total £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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 187 Notes to the consolidated financial statements continued # 5 Operating segments continued | | 2025 | | | 2024 | | | | --- | --- | --- | --- | --- | --- | --- | | | UK£m | Spain£m | Total£m | UK£m | Spain£m | Total£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£m | Spain£m | Total£m | UK£m | Spain£m | Total£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) | # 6 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 £m | 2024 £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. | Exceptional items | 2025 £m | 2024 £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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 188 # Notes to the consolidated financial statements continued ## 6 Net operating expenses and profit on ordinary activities before financing continued ### Cladding fire safety 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 £m | 2024 £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 | The remuneration paid to the Group's external Auditors is as follows: | | 2025 £m | 2024 £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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 189 # Notes to the consolidated financial statements continued ## 6 Net operating expenses and profit on ordinary activities before financing continued Non-audit services in 2025 and 2024 predominantly relate to work undertaken as a result of 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 work performed in Spain. ## 7 Staff costs | | 2025 Number | 2024 Number | | --- | --- | --- | | Monthly average number employed | | | | United Kingdom | 4,393 | 4,354 | | Spain | 103 | 104 | | | 4,496 | 4,458 | | | 2025 £m | 2024 £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 pages 129 to 158 in the Remuneration Committee report. ## 8 Finance income and finance costs | Finance income | 2025 £m | 2024 £m | | --- | --- | --- | | Interest receivable | 12.1 | 29.7 | | | 12.1 | 29.7 | | Finance costs | 2025 £m | 2024 £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) | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 190 # Notes to the consolidated financial statements continued ## 9 Taxation charge Tax (charged)/credited in the consolidated income statement is analysed as follows: | | | 2025 £m | 2024 £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 £m | 2024 £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 harbour provisions, meaning that no additional tax is expected to be due. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 191 # Notes to the consolidated financial statements continued ## 10 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 £m | 2024 £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 Million | 2024 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 | ## 11 Intangible assets | | Brands £m | Software and licences £m | Total £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 | The amortisation of software is recognised within administration expenses in the income statement. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 192 # Notes to the consolidated financial statements continued ## 12 Property, plant and equipment | | Freehold land and buildings £m | Plant, equipment and leasehold improvements £m | Total £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 | ## 13 Interests in joint ventures | | 2025 £m | 2024 £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: | Joint venture | Country of incorporation | Interest in the issued ordinary 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 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. | | Greenwich Millennium Village 2025 £m | Whitehill & Bordon Development Company Phase 1a 2025 £m | Whitehill & Bordon Regeneration Company 2025 £m | Immaterial joint ventures 2025 £m | Total 2025 £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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 194 # Notes to the consolidated financial statements continued # 13 Interests in joint ventures continued | | Greenwich Millennium Village 2024 £m | Whitehill & Bordon Development Company Phase 1a 2024 £m | Whitehill & Bordon Regeneration Company 2024 £m | Immaterial joint ventures 2024 £m | Total 2024 £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. During the current and prior year, no entity charged depreciation or amortisation. No entity had discontinued operations or items of other comprehensive income. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 195 # Notes to the consolidated financial statements continued ## 14 Deferred tax | | Share-based payments £m | Capital allowances £m | Temporary differences on overseas provisions £m | Retirement benefit obligations £m | Losses and other temporary differences £m | Total £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 £m | 2024 £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 (2024: £nil) because the Group does not believe that it is probable that these capital losses will be utilised in the foreseeable future. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 196 # Notes to the consolidated financial statements continued ## 15 Inventories | | 2025 £m | 2024 £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 £m | 2024 £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 | ## 16 Other financial assets ### Trade and other receivables | | Current | | Non-current | | | --- | --- | --- | --- | --- | | | 2025 £m | 2024 £m | 2025 £m | 2024 £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 contracts. Other receivables is comprised of recoverable VAT, land receivables and other sundry items. ### Cash and cash equivalents | | 2025 £m | 2024 £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. Further information on financial assets can be found in Note 20. ## 17 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 | Further information on loan facilities can be found in Note 20. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 197 Notes to the consolidated financial statements continued ## 18 Trade and other payables | | Current | | Non-current | | | --- | --- | --- | --- | --- | | | 2025 £m | 2024 £m | 2025 £m | 2024 £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 £m | 2024 £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. Further information on financial liabilities can be found in Note 20. ## 19 Leases ### The Group as a lessee The Group's leases consist primarily of premises and equipment. | Right-of-use assets | Premises £m | Equipment £m | Total £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 | | Lease liabilities | 2025 £m | 2024 £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 | | Amounts recognised in the income statement | 2025 £m | 2024 £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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 198 # Notes to the consolidated financial statements continued ## 20 Financial instruments and fair value disclosures ### Capital management 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 be at least £250 million per annum, in two equal instalments. ### Financial assets and financial liabilities Categories of financial assets and financial liabilities are as follows: | Financial assets | Fair value hierarchy | Carrying value | | Fair value | | | --- | --- | --- | --- | --- | --- | | | | 31 December 2025 £m | 31 December 2024 £m | 31 December 2025 £m | 31 December 2024 £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. | Financial liabilities | Fair value hierarchy | Carrying value | | Fair value | | | --- | --- | --- | --- | --- | --- | | | | 31 December 2025 £m | 31 December 2024 £m | 31 December 2025 £m | 31 December 2024 £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 mature less than one month later, hence the value of the derivative is negligible. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 199 # Notes to the consolidated financial statements continued ## 20 Financial instruments and fair value disclosures continued ### Market risk 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 sensitivity 2025 £m | Equity sensitivity 2025 £m | Income sensitivity 2024 £m | Equity sensitivity 2024 £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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 200 3 # 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 sensitivity 2025 £m | Equity sensitivity 2025 £m | Income sensitivity 2024 £m | Equity sensitivity 2024 £m | | --- | --- | --- | --- | --- | | Euro weakens against Sterling | – | 4.1 | – | 3.9 | | Euro strengthens against Sterling | – | (4.5) | – | (4.3) | ### Credit risk 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 to credit risk at the reporting date, assuming that any security held has no value. ### Liquidity risk 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) and cash and cash equivalents were £429.6 million (2024: £647.4 million). --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 201 # Notes to the consolidated financial statements continued ## 20 Financial instruments and fair value disclosures continued The maturity profile of the anticipated future cash flows including interest, using the latest applicable 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: | | Bank and other loans Em | Land creditors Em | Trade and other payables Em | Lease liabilities Em | Total Em | | --- | --- | --- | --- | --- | --- | | 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 | | | Bank and other loans Em | Land creditors Em | Trade and other payables Em | Lease liabilities Em | Total Em | | --- | --- | --- | --- | --- | --- | | 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 | ## 21 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. ### Defined contribution pension plan 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 (2024: £15.0 million), which is included in the income statement charge. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 202 # Notes to the consolidated financial statements continued ## 21 Retirement benefit obligations continued ### Defined benefit pension scheme 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 (pre-retirement) | 2.35% per annum above the yield on the nominal gilt yield curve. | | Discount rate (post-retirement) | 0.50% per annum above the yield on the nominal gilt yield curve. | | 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 the structure (31 December 2024: £75.1 million of property and £37.6 million of cash). --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 203 # Notes to the consolidated financial statements continued ## 21 Retirement benefit obligations continued The Group continues to work closely with the Trustee in managing pension risks, including management 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: | Life expectancy | 2025 | | 2024 | | | --- | --- | --- | --- | --- | | | 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. | Assumption | Change in assumption | Impact on scheme liabilities | Impact on 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. See the section on risks and risk management at the end of this note. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 204 # Notes to the consolidated financial statements continued ## 21 Retirement benefit obligations continued | 31 December 2025 Fair value of scheme assets of the TWPS | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | Percentage of total 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 Fair value of scheme assets of the TWPS | Level 1 £m | Level 2 £m | Level 3 £m | Total £m | Percentage of total 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. There are no investments in respect of the Group's own securities. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 205 33 # Notes to the consolidated financial statements continued ## 21 Retirement benefit obligations continued The table below details the movements in the TWPS pension liability and assets recorded through the income statement and other comprehensive income. | | 2025 | | | 2024 | | | | --- | --- | --- | --- | --- | --- | --- | | | Present value of obligation £m | Fair value of scheme assets £m | Asset/(liability) recognised on balance sheet £m | Present value of obligation £m | Fair value of scheme assets £m | Asset/(liability) recognised on balance sheet £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) | | Accounting valuation | 2025 £m | 2024 £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) | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 206 # Notes to the consolidated financial statements continued ## 21 Retirement benefit obligations continued ### Risks and risk management 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 bond yields | 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 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 foreign currency | 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. 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 mismatch | 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 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. | --- Taylor Wimpey plc Annual Report and Accounts 2025 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 investment | 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 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. | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 208 # Notes to the consolidated financial statements continued ## 22 Provisions | | Cladding fire safety £m | Leasehold £m | Other £m | Total £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 £m | 2024 £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 associated with the commitments made to the CMA, as described in Note 6. ## 23 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 | | 31 December | 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 | 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 subsequently changed. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 209 # Notes to the consolidated financial statements continued ## 24 Share premium | | 2025 £m | 2024 £m | | --- | --- | --- | | At 1 January | 777.9 | 777.9 | | Shares issued in year | – | | | At 31 December | 777.9 | 777.9 | ## 25 Other reserves | | Capital redemption reserve £m | Translation reserve £m | Other £m | Total other reserves £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 and qualified for merger relief under Section 612 of the Companies Act 2006. ## 26 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 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 210 # # Notes to the consolidated financial statements continued ## 27 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 equivalents Em | Bank and other loans Em | Total net cash Em | | --- | --- | --- | --- | | 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 cash flow statement include the related movements in land debtors and land creditors. ## 28 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 (2024: none). --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 211 # # Notes to the consolidated financial statements continued ## 29 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). | Sharesave (SAYE) | 2025 | | 2024 | | | --- | --- | --- | --- | --- | | | 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). | Share Incentive Plan (SIP) | 2025 | | 2024 | | | --- | --- | --- | --- | --- | | | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 212 # Notes to the consolidated financial statements continued ## 29 Share-based payments continued | Performance Share Plan (PSP) | 2025 | | 2024 | | | --- | --- | --- | --- | --- | | | 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 no market conditions | | Share awards with 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 cash settled elements (2024: £9.2 million and £2.9 million). --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 213 # Notes to the consolidated financial statements continued ## 30 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. ## Remuneration of key management personnel 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 £m | 2024 £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) related to share options held by members of the GMT. ## 31 Dividends | | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 214 # Notes to the consolidated financial statements continued ## 32 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% | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 215 # Notes to the consolidated financial statements continued ## 32 Alternative performance measures continued ### Tangible net assets per share 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% | ## 33 Post balance sheet events There were no material subsequent events affecting the Group after 31 December 2025. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 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: ![img-213.jpeg](img-213.jpeg) J Daly Director C Carney Director --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 217 # 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 | --- Notes to the Company financial statements ## 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 219 # 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 Strategic report Directors' report Financial statements Shareholder information 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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 221 # 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 Strategic report Directors' report Financial statements Shareholder information ← 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 223 # 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 | George Wimpey North East Limited | MCA Developments Limited | Stonepit Limited | | --- | --- | --- | --- | | Admiral Homes (Eastern) Limited | George Wimpey North London Limited | MCA East Limited | Tawnywood Developments Limited | | Admiral Homes Limited | George Wimpey North Midlands Limited | MCA Holdings Limited | Taylor Wimpey Capital Developments Limited | | Ashton Park Limited | George Wimpey North West Limited | MCA Land Limited | Taylor Wimpey Commercial Properties Limited | | BGS (Pentian Green) Holdings Limited | George Wimpey North Yorkshire Limited | MCA Leicester Limited | Taylor Wimpey Developments Limited | | Bryad Developments Limited | George Wimpey South East Limited | MCA London Limited | Taylor Wimpey Garage Nominees No 1 Limited | | Bryant Country Homes Limited | George Wimpey South Midlands Limited | MCA Northumbria Limited | Taylor Wimpey Garage Nominees No 2 Limited | | Bryant Group Services Limited | George Wimpey South West Limited | MCA Partnership Housing Limited | Taylor Wimpey Holdings Limited | | Bryant Homes Central Limited | George Wimpey South Yorkshire Limited | MCA South West Limited | Taylor Wimpey International Limited | | Bryant Homes East Midlands Limited | George Wimpey Southern Counties Limited | MCA West Midlands Limited | Taylor Wimpey Property Company Limited | | Bryant Homes Limited | George Wimpey West London Limited | MCA Yorkshire Limited | Taylor Wimpey Property Management Limited | | Bryant Homes North East Limited | George Wimpey West Midlands Limited | McLean Homes Limited | Taylor Wimpey SH Capital Limited | | Bryant Homes Northern Limited | George Wimpey West Yorkshire Limited | McLean Homes Bristol & West Limited | Taylor Wimpey UK Limited | | Bryant Homes South West Limited | Globe Road Limited | McLean Homes Southern Limited | Thameswey Homes Limited | | Bryant Homes Southern Limited | Grand Union Vision Limited | McLean TW Estates Limited | The Garden Village Partnership Limited | | Bryant Properties Limited | Groveside Homes Limited | McLean TW (Chester) Limited | The Wilson Connolly Employee Benefit Trust Limited | | Candemakers (TW) Limited | Hamme Construction Limited | McLean TW (Northern) Limited | Thurs Limited | | Clipper Investments Limited | Hanger Lane Holdings Limited | McLean TW (Southern) Limited | Thomas Lowe and Sons, Limited | | Compine Developments (Wootton) Limited | Hassall Homes (Cheshire) Limited | McLean TW (Yorkshire) Limited | Thomas Lowe Homes Limited | | Dormant Nominees One Limited | Hassall Homes (Mercia) Limited | McLean TW Group Limited | TW NCA Limited | | Dormant Nominees Two Limited | Hassall Homes (Southern) Limited | McLean TW Holdings Limited | TW Springboard Limited | | Farrods Water Engineers Limited | Hassall Homes (Wessex) Limited | McLean TW Limited | Twyman Regent Limited | | Flyover House Limited | Haverhill Developments Limited | McLean TW No. 2 Limited | Valley Park Developments Limited | | George Wimpey Limited | Jim 1 Limited | Melbourne Investments Limited | Whelmar (Chester) Limited | | George Wimpey Bristol Limited | Jim 3 Limited | Pangbourne Developments Limited | Whelmar (Lancashire) Limited | | George Wimpey City Limited | Jim 4 Limited | Prestoplan Limited | Whelmar (North Wales) Limited | | George Wimpey City 2 Limited | Jim 5 Limited | River Farm Developments Limited | Whelmar Developments Limited | | George Wimpey East Anglia Limited | L. & A. Freeman Limited | South Bristol (Ashton Park) Limited | Wilco Homes Anglia Limited | | George Wimpey East London Limited | Laing Homes Limited | Spinks & Denning Limited | Wilco Homes Eastern Limited | | George Wimpey East Midlands Limited | Laing Land Limited | St. Katharine By The Tower Limited | Wilco Homes Midlands Limited | | George Wimpey Manchester Limited | Landtrust Developments Limited | St. Katharine Haven Limited | Wilco Homes Northern Limited | | George Wimpey Midland Limited | Limebrook Manor LLP | Stone Pit Restoration Limited | Wilco Homes Southern Limited | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 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% | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 225 # 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 | 50% | Kent House, 14-17 Market Place, London, W1W 8AJ | | Bromley Park Limited | | | | 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 | 50% | Berkeley House, 19 Portsmouth Road, Cobham, KT11 1JG | | St George Little Britain (No.2) Limited | | | | 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 Strategic report Directors' report Financial statements Shareholder information 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 | | Albon 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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 227 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*† | 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 | | Harwell 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 Strategic report Directors' report Financial statements Shareholder information 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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 229 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** | 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 Strategic report Directors' report Financial statements Shareholder information 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*0 | 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 Limited | 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*1 | 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 | --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 231 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 Strategic report Directors' report Financial statements Shareholder information 232 Five year review (unaudited) | | 2025 Dm | 2024 Dm | 2023 Dm | 2022 Dm | 2021 Dm | | --- | --- | --- | --- | --- | --- | | 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 Dm | 2024 Dm | 2023 Dm | 2022 Dm | 2021 Dm | | --- | --- | --- | --- | --- | --- | | 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 234 # 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. --- 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: 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); andcomprising 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: to ordinary shareholders in proportion (as nearly as may be practicable) to their existing holdings; andto 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: 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): to ordinary shareholders in proportion (as nearly as practicable) to their existing holdings; andto 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; andin 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; andto 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 236 # 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 Tumpike Road High Wycombe Buckinghamshire HP12 3NR Registered in England and Wales No. 296805 4 March 2026 --- 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. --- 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. --- 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. ### --- 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: 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;the --- 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: 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; andan 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: 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; andthe 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 242 # 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. ![img-214.jpeg](img-214.jpeg) ![img-215.jpeg](img-215.jpeg) 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. --- Notice of Annual General Meeting continued 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.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.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.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.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.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; orAny 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. 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: to do so would interfere unduly with the preparation for the meeting or involve the disclosure of confidential information;the answer has already been given on a website in the form of an answer to a question; orit it is undesirable in the interests of the Company or the good order of the AGM that the question be answered.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).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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 244 # 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. --- 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. --- 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. --- 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. ## --- 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: 1. Enables the Company to reduce printing and postage costs 2. Allows faster access to information and enables shareholders to access documents on the day they are published on the Company's website 3. 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 Strategic report Directors' report Financial statements Shareholder information 249 # 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. --- Taylor Wimpey plc Annual Report and Accounts 2025 Strategic report Directors' report Financial statements Shareholder information 250 # 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 Tumpike 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 Tumpike 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 Tumpike 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 --- This publication is produced by a CarbonNeutral® company and the paper is Carbon Balanced with World Land Trust. Balancing is delivered by World Land Trust, an international conservation charity, who offset carbon emissions through the purchase and preservation of high conservation value land. Through protecting standing forests, under threat of clearance, carbon is locked in that would otherwise be released. These protected forests are then able to continue absorbing carbon from the atmosphere, referred to as REDD (Reduced Emissions from Deforestation and forest Degradation). This is now recognised as one of the most cost-effective and swiftest ways to arrest the rise in atmospheric CO₂ and global warming effects. Additional to the carbon benefits is the flora and fauna this land preserves, including a number of species identified at risk of extinction on the IUCN Red List of Threatened Species. This report has been printed on Novatech Matt and Edixion offset which is FSC® certified and made from 100% Elemental Chlorine Free (ECF) pulp. The mill and the printer are both certified to ISO 14001 environmental management system. The report was printed by a CarbonNeutral® printer. Printed by Pureprint Group. Designed and produced by Friend. www.friendstudio.com. CARBON BALANCED PAPER www.carbonbalancedpaper.com CAP029957 FSC www.fsc.org MIX Paper | Supporting responsible forestry FSC® C022913 --- www.taylorwimpey.co.uk Taylor Wimpey | plc