15th Apr 2026 09:36
(Alliance News) - Barratt Redrow PLC on Wednesday said it is being "mores selective" on land purchases given the Middle East crisis and the likely impact on mortgage rates and build cost inflation.
The Leicestershire, England-based housebuilder said it is on track for total home completions of between 17,200 and 17,800 for the financial year to June, in line with consensus of 17,416, and higher than 16,565 completions in the 52 weeks to June 29, 2025.
The FTSE 100 listing said it is also on course to deliver full-year adjusted pretax profit in line with current market consensus of GBP568 million, which would be up 16% from GBP488.3 million the year prior.
Year-end net cash is now expected to be between GBP550 million and GBP650 million, around GBP150 million ahead of previous guidance, reflecting the timing of legacy building remediation payments and reduced land investment.
Barratt Redrow said it is being "mores selective" on land purchases given the Middle East crisis and the likely impact on mortgage rates and build cost inflation.
It now anticipates total land approvals for the financial year will be between 7,000 and 9,000 plots, below previous guidance range of between 10,000 and 12,000 plots, with land spend of between GBP700 million and GBP800m, lower than previous guidance range of between GBP800 million and GBP900 million.
"The ongoing conflict in the Middle East is contributing to increased economic uncertainty, including the potential for a more prolonged higher interest rate environment and renewed cost pressures. While we currently expect any direct impact on FY26 to be limited, visibility beyond the current financial year remains more uncertain," the firm added in a statement.
Shares in the company were up 1.9% at 263.10 pence each in London on Wednesday morning.
Barratt Redrow said it had a "solid" third quarter, which ran to March 29. Its net private reservation rate was 0.64 per active sales outlet per week, up on-year from 0.62.
It delivered 3,274 total home completions in the period down from 3,717 a year ago, bringing completions in the financial year to date to 10,718 homes versus 10,824, a year ago.
The lower level of completions in the period reflected a particularly strong comparable quarter last year ahead of the end of stamp duty relief.
Barratt Redrow maintained full-year build cost inflation guidance of 2% but stressed higher energy costs are likely to be reflected in increased building material costs in financial 2027.
In addition, the company confirmed its GBP100 million target in respect of cost synergies from the integration of Redrow.
By Jeremy Cutler, Alliance News reporter
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