Trading Update

Taylor Woodrow PLC
20 October 2004


                               Taylor Woodrow plc

                       Trading Update, October 20th 2004

Taylor Woodrow plc is hosting a dinner with analysts today at which it will
discuss current trading.

Overall, Taylor Woodrow remains on track to meet profit expectations for 2004.*

In the UK, the market has reverted to a lower level of activity compared to the
extremely strong performance in the second half of 2003. However, with low
unemployment, a continuing low interest rate environment, a recognised shortage
of housing stock and reasonable consumer confidence, the UK housing market
remains attractive.

We have continued to achieve modest increases in average selling prices, albeit
at a lower rate of growth than previously. Visitor levels in August and
September have remained broadly stable year on year, but continuing negative
media speculation means that buyers are taking longer to commit. In the light of
this, we now believe it prudent to forecast 2004 home sales around 6% lower than
previously targeted, against which we are 94% sold.

The integration of Wilson Connolly is now complete and we have been able to
deliver the synergy benefits faster than previously anticipated resulting in
savings ahead of the £12.5 million previously advised for 2004.

We previously indicated that the sale of K2 would be concluded either in
December 2004 or early 2005. We now confirm that the sale will complete in the
first quarter of 2005 at the price and margins previously indicated.
In North America, where we have been increasing our investment, market
conditions remain buoyant. The North America housing division is performing
extremely well and will deliver substantially higher profits than anticipated
through a combination of better margins and volumes, against which we are
already over 98% sold. The recent hurricanes have had some impact on production
in Florida, but they will have no material effect on profits.

* After allowing for the movement of the sale of K2 and the resultant switch of
its profit into financial year 2005, Taylor Woodrow remains on track to meet
profit expectations for 2004.

Management Succession:

Denis Mac Daid, currently an operations director of Taylor Woodrow Developments
Ltd (TWD), the group's principal UK development company, is due to retire on
30th June 2005 after nearly 40 years service. He will relinquish his current UK
line responsibilities whilst continuing to maintain Executive Committee
responsibility for housing operations in Spain and Gibraltar. He will remain a
main board director of Taylor Woodrow plc until 30thJune, 2005 and act as
non-executive chairman of Taylor Woodrow Construction Ltd.

In order to ensure a smooth transition of responsibilities for 2005 business
plans, the company also announces the following changes, which will take effect
from 1st November, 2004.

The existing UK business regions of TWD will report into four operational areas.
Ed Hinchliffe, currently TWD's Commercial Director, will become Operations
Director with responsibility for the East and West Midlands. His previous
responsibilities included Land & Planning, Sales & Marketing, and Technical
Services.

Nick Smith, currently TWD's Director of Land & Planning, will become Operations
Director with responsibility for the South, South West and South East. He was
formerly a main board director of Bryant Group plc and has over 20 years' house
building experience.

Graeme McCallum and Tony Wilby continue in their current roles as TWD Operations
Directors.

All four Operations Directors are members of the company's Executive Committee.
Graeme McCallum is also a main board director.




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For further information, please contact:


John Holland-Kaye 0121 600 8394 / 07816 5172000
Taylor Woodrow Investor Relations

Ian Morris 0121 600 8520 / 07816 518767
Taylor Woodrow Corporate Communications

Emma Burdett / William Clutterbuck 020 7379 5151
Maitland Consultancy






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