Barratt Redrow urges government to act as Budget uncertainty slows sales

(Sharecast News) - Housebuilder Barratt Redrow has called on the government to take action to support demand ahead of the Autumn Budget later this month, following a slight slowdown in trading momentum since the start of the new financial year. The company remains on track to hit its home completions targets this year, but net private reservation rates have eased slightly since the start of July due to challenging conditions and increased uncertainty ahead of the Budget.

The average net private reservation rate over the 17 weeks to 27 October was 0.57, down from 0.59 over the previous financial year, though there was no contribution from sales to the private rental sector and other multi-unit sales, compared with 0.04 last year.

As a result, the group generated just 228 net private reservations per week, down from 255 last year, operating from an average of 402 sales outlets, down from 433, the company said in an AGM statement on Wednesday.

Meanwhile, forward order book totalled 10,669 homes by the end of last month, down from 10,706 homes at the same point last year, though the order book value increased to £3.28bn from £3.21bn last year.

Home completions were 7.9% ahead of the same date last year at 3,665, with the company on track deliver between 17,200 and 17,800 homes over the full financial year, with around 40% expected in the first half.

"Our FY26 performance remains dependent on normal seasonal trading patterns for the remainder of the financial year and the impact of the upcoming Budget on demand," the builder said.

It wants to see the government create a "positive, stable and predictable environment for institutional and private homebuyers, as well as homebuilders and our supply chain partners".

Chief executive David Thomas said: "It is essential that government policy continues to prioritise planning reform, removes barriers to investment and, crucially, supports homebuyers, especially first-time buyers, if the sector is to accelerate volumes to help meet the country's housing needs."