Britain’s largest housebuilder, Barratt Redrow, has announced a significant reduction in land acquisition spending as it responds to what it described as a “less certain backdrop” linked to the ongoing conflict in Iran, even as current sales performance remains steady.
The FTSE 100 company, formed following Barratt Developments’ £2.5 billion takeover of Redrow in 2024, said trading between January and March remained “resilient” and kept it on track to meet full-year pre-tax profit expectations of around £568 million. The firm’s financial year runs to the end of June.
Despite the solid near-term performance, the group signalled growing caution about the outlook beyond the current year. It warned that “visibility beyond the current financial year remains more uncertain”, pointing to geopolitical instability and pressure on borrowing costs as key risks.
Chief executive David Thomas said the company was adopting a “disciplined approach to capital allocation”, with tighter control over land purchases and costs. Since the start of July, Barratt Redrow has acquired land for just over 4,000 homes, sharply lower than the 15,300 plots secured in the same period last year.
For the full year, the developer now expects to add between 7,000 and 9,000 plots to its land bank, down from a previous target of 10,000 to 12,000. Total land investment is also being reduced to between £700 million and £800 million, compared with an earlier plan of £900 million.
Even with reduced investment, sales activity has remained stable. Between January and March, the company recorded an average reservation rate of 0.67 homes per site per week, a 6% rise compared with the same period in 2025. Its forward sales pipeline has strengthened to £3.54 billion, up 13% year-on-year, with 94% of expected completions for the financial year already secured.
Barratt Redrow said this strong order book means the immediate impact of global uncertainty is likely to be limited. The company expects to complete between 17,200 and 17,800 homes this year, building on 16,565 units delivered in the previous financial period, making it the UK’s largest homebuilder by volume.
However, concerns remain over rising construction costs, particularly if energy prices continue to increase. The group said it would provide updated guidance on build cost inflation in July.
Sales incentives remain above historical norms, although the company said it has not needed to increase them further in recent months.
While shares in Barratt Redrow rose 2.2% on Wednesday to 264p, they remain 38% lower over the past year, reflecting investor caution about longer-term pressures despite stable short-term trading.
