Taylor Wimpey has revealed that previously undiscovered defects involving cavity barriers behind brickwork and render account for up to two-thirds of the sharp £222m increase in its cladding remediation provision last year.
The issues were uncovered only after intrusive investigations and updated Fire Risk Appraisal of External Walls (FRAEW) assessments carried out under the government’s remediation action plan. Earlier non-intrusive checks had failed to identify the missing or defective cavity barriers.
The housebuilder said changing interpretations of the PAS 9980 guidance by chartered fire engineers had also contributed to rising costs. As a result, some buildings that had previously been considered acceptable under earlier EWS1 assessments have since been flagged for remediation following more detailed FRAEW inspections.
Taylor Wimpey said the £222m provision includes an allowance for fixing cavity barrier defects in buildings that have not yet undergone intrusive inspections. This figure is expected to reduce as more assessments are completed.
The scale of the defects was disclosed alongside the company’s financial results for the year ending December 2025. Despite the remediation charge, the builder reported strong trading performance, with revenue rising 13% to £3.84bn.
Pre-tax profit excluding exceptional items slipped to £394m from £418m the previous year. However, reported pre-tax profit fell sharply to £146.5m after accounting for the remediation provision.
The firm completed 11,229 homes during the year, including joint ventures, up from 10,593 previously. The average private selling price increased to £374,000, while the overall average selling price reached £335,000.
Chief executive Jennie Daly said: “We delivered a robust performance in 2025, with completions up 6% and results in line with guidance — testament to the hard work and commitment of our teams in delivering the Group’s strategy against a challenging market backdrop.”
She added that the spring selling season was progressing well, with encouraging customer demand and improved planning outcomes supporting outlet growth.
Looking ahead, Taylor Wimpey expects UK housing completions of between 10,600 and 11,000 homes in 2026. The company also said adjusted operating profit for the year is likely to be around £400m as margins soften due to pricing pressure in the order book and continued construction cost inflation.