Prediction: in 1 year, the Taylor Wimpey share price could reach…

Can Britain’s reformed planning scheme send the Taylor Wimpey share price into overdrive? Here’s what the latest analyst forecasts predict.

| More on:
a couple embrace in front of their new home

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The last 12 months have been a bit rough for the Taylor Wimpey (LSE:TW.) share price. Like many homebuilder stocks, Taylor Wimpey enjoyed a bit of a rally following the general election in 2024. Yet since then, investor sentiment has seemingly soured, resulting in shares falling by nearly 20% since last March.

However, the long-awaited planning reform bill by the new government is starting to see the light of day. And it promises to deliver the “biggest building boom in a generation”.

Considering the plan intends to deliver an extra 1.5m homes by 2029, that’s a pretty nice tailwind for Taylor Wimpey if successful. After all, the company’s sitting on a pretty extensive landbank of 79,000 plots. And with less bureaucracy plaguing the construction industry, the time and money spent before shovels are put into the ground should be drastically shortened. In theory, that means higher completions at a lower cost.

Should you invest £1,000 in Taylor Wimpey right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Taylor Wimpey made the list?

See the 6 stocks

So what does this all mean for Taylor Wimpey’s share price over the next 12 months?

Growth in 2025

Assuming the government’s planning reform strategy is a success, the outlook for Taylor Wimpey looks fairly positive. Revenue projections for 2025 and 2026 indicate up to 11.5% and 8.9% growth respectively. Meanwhile, earnings growth is expected to follow at 5.3% and 18.3% respectively, demonstrating the impact of anticipated wider profit margins over time.

Translating this into a projected share price, the 12 analysts keeping tabs on Taylor Wimpey currently have an average target of 142p. Compared to where the stock’s trading today, that’s just over a 25% expected jump. And if accurate, a £1,000 investment today could be worth around £1,250 by this time next year.

Taking a step back

Earning a 25% return in one year is pretty impressive. Don’t forget the stock market average in the UK is usually only around 8%. However, like all forecasts, this outlook’s dependent on building activity ramping up. And that may prove more challenging than expected.

There’s also no guarantee that the reformed planning bill will even be a success. After all, this isn’t the first time a government has tried to solve Britain’s housing problem. Meanwhile, the country’s notoriously short on skilled builders, meaning that even with easier planning permission, construction rates might still lag.

There’s also the risk of oversupply to consider. If every homebuilder starts constructing more houses all at once, the increase in supply would likely cause house prices to fall. That’s good news for consumers but not so much for Taylor Wimpey’s profit margins, even with the benefit of lower planning costs.

Time to buy?

The future of Taylor Wimpey’s share price may not be as clear cut as analyst forecasts would imply. However, the firm appears to be well-positioned to capitalise on the new government policy. As such, investors may want to consider taking a closer look at this enterprise.

But this isn’t the only opportunity that’s caught my attention this week. Here are:

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Here’s the Tesco share price forecast for the next 12 months!

Tesco's valuation has dropped to multi-year lows after recent share price weakness. Is now the time to consider buying the…

Read more »

Illustration of flames over a black background
Investing Articles

Just released: March’s higher-risk, high-reward stock recommendation [PREMIUM PICKS]

Fire ideas will tend to be more adventurous and are designed for investors who can stomach a bit more volatility.

Read more »

Investing Articles

I asked ChatGPT for the best FTSE 100 investment trust to buy… here’s what it said

There aren't many FTSE 100-listed investment trusts and according to ChatGPT there’s only one winner. Dr James Fox explores.

Read more »

Investing Articles

How much should investors put in an ISA to achieve the average UK wage in passive income?

Millions of Britons use the Stocks and Shares ISA as a vehicle to build wealth, but a successful investor can…

Read more »

Investing Articles

2 cheap FTSE dividend stocks to consider buying for an ISA

The deadline for using up the Stocks and Shares ISA allowance is almost upon us. Paul Summers has spotted two…

Read more »

Investing Articles

£20k in a Stocks and Shares ISA? Here’s how an investor could target £1,342 in passive income each month

Christopher Ruane explains how a long-term approach to investing a Stocks and Shares ISA could generate a four-figure monthly income.

Read more »

Shot of an young Indian businesswoman sitting alone in the office at night and using a digital tablet
Investing Articles

Millions are missing out on ISA account benefits! Here’s what I’m doing now

Swathes of people are missing the chance to supercharge their returns with a Stocks and Shares or Lifetime ISA account.…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Here’s my plan to survive and thrive in a stock market correction

A falling stock market can be an opportunity, but investors need a plan. Stephen Wright shares his strategy for taking…

Read more »