Barratt Redrow Faces Costs, Misses Home Targets

Barratt Redrow, the UK's largest housebuilder, completed 16,565 homes in fiscal 2025, falling short of its 16,800-17,200 target range due to weaker demand—especially from international and investor buyers in London amid high taxes and low consumer confidence. The company announced legacy property liabilities of £248 million, mainly for fire safety and construction issues following its Redrow acquisition, causing a share price drop of over 9%. This performance poses a setback to the Labour government’s target of 1.5 million new homes during this Parliament. Despite these challenges, Barratt reported net cash of £772 million, above expectations, and confirmed £69 million in merger synergies, with a medium-term goal of 22,000 annual home completions. The company also announced a £100 million share buyback plan. Industry-wide pressures, including high mortgage rates and limited government support, continue to impact the UK housing market.