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Taylor Wimpey鈥檚 pre-tax profit has dropped significantly on the back of soaring fire safety remediation costs.

Results for the half year to 30 June, published this morning, showed pre-tax profit of 拢99.7m, down 58% from 拢237.7m in the same period the year prior.

Without a 拢88m increase in cladding fire safety provisions, profit still would have been down, but only to 拢187.7m.

The housebuilder attributed the increased provision to cost inflation on new tenders received and increased project delivery administration costs.

Despite the drop in profit - which came on revenue of 拢1.52bn, down 7.3% from 拢1.64bn last time - chief executive Jennie Daly said the business had delivered a 鈥済ood鈥� performance in the first half against a 鈥渞elatively stable market backdrop鈥�.

鈥淲hile interest rates and mortgage rates remain high, our teams continue to work extremely hard on the ground to support our customers through the homebuying process and I would like to thank them for their ongoing commitment,鈥� she said

Completions in the half year stood at 4,728 homes, down from 5,120 in the same period in 2023.

The housebuilder now expects to deliver full-year completions towards the upper end of its previous guidance range of 9,500 to 10,000, although this would be lower than the 10,848 posted in 2023 and the 14,154 homes it built in 2022.

Julie Palmer, partner at Begbies Traynor, said followers of the UK construction sector would be 鈥減leased鈥� by the results, with the figures 鈥減ointing to tentative signs of a turnaround in fortunes for the industry鈥�.

鈥淭he average selling price might have decreased for Taylor Wimpey so far in 2024, but what will be of encouragement is that the company saw good demand in the spring and now views conditions as being relatively stable,鈥� she said.

鈥淲hile it鈥檚 certainly not a stellar performance, it is clear progress after what has been torrid time for housebuilders and construction companies alike.鈥�

Taylor Wimpey also said that housing associations were struggling to commit to affordable housing deals due to 鈥渋ncreased borrowing costs and regulatory pressures鈥�.

Daly welcomed Labour鈥檚 鈥渞ecognition that planning is a major barrier to economic growth鈥� while adding that it was 鈥渆arly days鈥� for the new government.

Taylor Wimpey has announced that non-executive director Scilla Grimble will be appointed chair of its audit committee.