Barratt Redrow has cut its housebuilding target for the coming year after continued planning delays reduced the number of sales outlets it expects to open.
The housebuilder now expects to complete between 17,500 and 17,900 homes in FY27, down from previous guidance of 17,700 to 18,200.
It said planning delays had reduced its expected average number of sales outlets from around 415 to 405.
The revised outlook came as Barratt Redrow reported completing 17,667 homes during FY26, 5% more than the comparable 16,826 in the previous year.
PLANNING DELAYS
The group said recent planning reforms should eventually support housing delivery but that the benefits had yet to be realised on the ground.
It also pointed to continuing affordability pressures, with its private reservation rate excluding PRS and other multi-unit sales running at 0.53 since the beginning of FY27, compared with 0.55 during the equivalent period last year.
Despite the difficult backdrop, forward sales stood at 11,200 homes worth £3.34bn at 6 September, compared with 10,593 homes worth £3.22bn a year earlier.
Chief Executive David Thomas (main picture, inset) said: “Whilst the wider economic backdrop remains uncertain, we are focused on maximising the strength of our three differentiated brands, maintaining our disciplined approach to costs and capital allocation, and continuing to deliver for customers, communities and, as evidenced by the capital return announced in July, we have a clear commitment to delivering for our shareholders.”
PROFITS AND COMPLETIONS
Revenue increased 6.6% to £6.06bn during FY26, while adjusted profit before tax fell 7.1% to £572.8m.
Statutory pre-tax profit increased 48.2% to £363.5m, reflecting a reduced impact from costs and accounting adjustments associated with the Redrow transaction and integration.
The integration of Redrow was completed during the year, with £73m of annual cost synergies delivered towards the group’s £100m target.
Barratt Redrow also opened 12 sites during the year where additional brands were introduced to existing developments and plans another 18 in FY27.
The group said mortgage availability remained competitive but higher mortgage rates and affordability pressures continued to affect customer confidence.
