Barratt Redrow shares rise as housebuilder predicts growth
Construction giant Barratt Redrow has said it is “well-positioned for sustainable growth” despite its forward sales dropping by double digits.
In its trading update for the period between December and March, the group revealed that its forward sales were 10 per cent lower at the end of March compared to last March.
While its private home order book was over three per cent lower in terms of volume relative to the aggregated position a year ago, it was ahead by over three per cent in value terms.
This is because the group noted that its net private reservation rate, excluding the private rented sector and other multi-unit sales, is slightly ahead of last year’s at 0.62 reservations per active sales outlet per week.
Barratt also announced it remains on track to deliver total home completions of between 16,800 and 17,200 home completions for the whole year.
The chief executive, David Thomas, highlighted the integration of Barratt and Redrow was “nearing completion”.
Barratt and Redrow announced in February 2024 that they would merge for £2.5bn, which the competition regulator green-lit last October.
The group said that nine divisional office closures have been completed, and during FY26, Barratt Redrow will operate from 32 housebuilding divisions across the country, with the capacity to deliver 22,000 homes per annum in the medium term.
Thomas added that the brands “have continued to drive homebuyer demand and performance this quarter, leaving us well placed to deliver housing volumes in line with our full-year guidance.”
The update also noted that the wider integration programme is on track to deliver the increased target of £100m of cost synergies.
Thomas said: “The operational integration of Barratt and Redrow is nearing completion, and we are making good progress on both cost and revenue synergies.”
“In addition to realising the power of our differentiated brands, we are also focused on unlocking the full potential of our enhanced land position,” he added.
He highlighted that “the fundamentals for our industry remain strong, with a clear need for new homes across all tenures and a national focus on accelerating delivery.”
The group’s share price is up by over one per cent on Wednesday morning.
Aarin Chiekrie, equity analyst, Hargreaves Lansdown said: “Much to investors’ relief, Barratt Redrow has shown that everything’s ticking along nicely in 2025. Recent industry data have been somewhat conflicting.”
“Being the first UK housebuilder to update markets on performance since the storm of tariff uncertainty and stamp duty changes, Barratt has done well to quell worries for now,” she added.