Key facts
- Barratt Redrow is urging Prime Minister-to-be Andy Burnham to cut taxes and regulatory burdens.
- The company stated that reforms are needed to address the housing crisis, create jobs, and drive economic growth.
- Barratt Redrow announced a £386 million share buyback program.
- The housebuilder built 17,667 homes in the year to June 30, 2026.
- Building cost inflation has risen to 3% due to the Iran war.
Barratt Redrow has urged Prime Minister-to-be Andy Burnham to implement tax cuts and reduce regulatory burdens to stimulate the UK housing market and address the ongoing housing crisis. The FTSE 100 housebuilder stated that "increasing regulatory and tax burdens" are constraining viability and hindering housing delivery, including affordable housing.
In an update to investors, Barratt Redrow emphasized the need for urgent reforms to tax and red tape to "tackle the housing crisis, create jobs and drive economic growth." The company noted that last week, in a joint plea with property portal Rightmove, it had called for the government to abolish stamp duty for first-time buyers, citing that new development adverts were at their lowest level since January 2017.
Zoopla data indicates that stamp duty disproportionately affects first-time buyers in London due to high property prices, despite a £300,000 relief. Other housebuilders have also sought support from Burnham, with FTSE 250 firm Berkeley recently calling for "strong political leadership" on housebuilding, stating that significant government intervention is necessary for material improvement.
Barratt Redrow also announced a £386 million share buyback program for the year to July 2027, which it considers the "most effective way to create long-term shareholder value." Despite inflationary risks from the Iran war, industry headwinds, and subdued consumer demand, the company believes it is well-positioned to deliver "attractive" returns. In the year to June 30, 2026, Barratt Redrow built 17,667 homes, meeting the upper end of its guidance, including 3,774 affordable homes. The company's order book for future projects is valued at £2.8 billion, a 4% decrease from £2.9 billion a year prior.
The company, formed in October 2024 from the merger of Barratt Developments and Redrow, expects £53 million in cost savings this year. Building cost inflation rose to 3% following the outbreak of war in Iran, bringing the average annual inflation to 2%. Barratt Redrow warned that renewed tensions between the US and Iran could further increase building cost inflation due to volatility in energy prices and supply chains, though the extent of the impact remains uncertain.