Barratt Redrow has shaved ts housebuilding targets and cut back on spending to tackle a “challenging” outlook for sales.
The FTSE 250 housebuilder said building costs continue to put pressure on the business and housing demand is lower.
Group chair, Caroline Silver, said: “A more positive start to 2026, with Budget uncertainties removed and interest rate cuts back on the agenda, was sharply reversed by the start of the Middle East conflict at the end of February.
“These events, and the corresponding risks around energy costs, disruption to supply chains and inflation, saw a significant shift in interest rate expectations, making homebuyers more cautious and increasing ongoing affordability challenges in the UK housing market.”
Barratt Redrow expects to complete between 17,500 and 17,900 homes next year, downgraded from between 17,700 and 18,200.
It built 17,667 homes in the year to June, 5% more than in the previous year , as revenue jumped by 6.6% to £6bn. Pre-tax profit jumped by a third to £363.5m.
Outgoing chief executive David Thomas, said: “In a tough market, we have driven a strong operational and financial performance, delivering 17,667 homes, ahead of last year, and adjusted profit before tax in line with market expectations.”
He will be replaced by Dean Banks, the former chief executive of Australian housebuilder Ventia.
SNIB in housebuilding deal
The Scottish National Investment Bank has formed a joint venture with Hunter REIM and Ediston Real Estate to develop 370 build-to-rent homes in Edinburgh.
The development, which is backed by £19.5m from the bank, will form a new neighbourhood in a key employment area of the city near both the Edinburgh Royal Infirmary and Bio Quarter.
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