A trading update from leading housing developer Barratt Redrow today once again shows the challenge facing the government in pursuing its ambition to get more houses built and make housing more affordable.
In the year to 29th June 2025, almost exactly corresponding with the first year of Keir Starmer鈥檚 Labour government, Barratt Redrow鈥檚 total home completions (including joint ventures) reduced by 7.8% to 16,565 from the aggregated comparable of 17,972 in FY24 (including both Barratt and Redrow, which came together in October 2024).
The decline in overseas investors snapping up London property was blamed.
Completions declined 12% in the first half of the year but only by to 4.7% in the second half.
While volumes are down, prices are up, which is good for shareholders but less good for people looking for somewhere to live. The total average selling price for the year was 拢344,000, compared to 拢323,400 the previous year (again, aggregating both Barratt and Redrow).
In the current financial year (FY26), total home completions, including JVs, are expected to be in the range of between 17,200 and 17,800, which is still less than the 17,972 that the group built in FY 2024 before Starmer came to power.
That said, if the decline is only because of fewer overseas speculators buying up London apartments and leaving them empty, Starmer might not worry so much.
Chief executive David Thomas said: 鈥淥ur adjusted profits are in line with market expectations, despite home completions being slightly below our guided range, mainly due to the impact of fewer international and investor completions than expected in our London businesses. We are already seeing tangible benefits from the Redrow acquisition, with cost synergies being delivered ahead of schedule, a new divisional structure in place and revenue synergies progressing well.
鈥淎lthough demand during the year has been impacted by consumer caution and mortgage rates not falling as quickly as hoped, there remains a long-term structural under-supply of housing in this country. Our increased scale, three market-leading brands and strong land pipeline put us in a unique position to rapidly accelerate volume delivery as consumer confidence strengthens and the benefits of planning reform materialise at a local level. We remain confident in our medium-term ambition to deliver 22,000 high-quality homes a year, and in the long-term demand for our high-quality homes."
Julie Palmer, partner at insolvency specialist Begbies Traynor, commented: 鈥淎 7.8% drop in total home completions highlights how the long-anticipated rebound in housebuilding has yet to take hold and drive growth in the sector. Indeed, the drag from weak consumer confidence, elevated mortgage rates, and a lack of meaningful government intervention continues to limit what otherwise capable operators can deliver.
鈥淏arratt clearly has strong fundamentals in place, but like the rest of the sector, it is constrained by forces beyond its control. Still, where many smaller players are struggling to stay afloat, Barratt's scale and strength leave it well placed to ride out the current situation and lead the recovery when conditions improve.鈥�
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