Barratt Redrow plc is a UK housebuilder. It also operates in commercial development through Wilson Bowden Developments, covering offices, retail, leisure, industrial, and distribution properties, as well as land development. It manufactures timber frames under the Oregon Timber Frame brand and furniture under the BD Living brand. Its homes are sold under the Barratt Homes, David Wilson Homes, Redrow, and Barratt London brands. Formerly Barratt Developments plc, it changed its name to Barratt Redrow plc in October 2024. Founded in 1953, it is headquartered in Coalville, the United Kingdom.
London Housebuilding Hits Record Low as Developers Abandon Capital
London's housing crisis is deepening as developers mothball major projects and housebuilding collapses to record lows. City Developments Limited has shelved its £1.3bn redevelopment of the 22-acre Stag Brewery site in south-west London, despite winning planning permission in May 2025 for 1,000 new homes, shops and offices, citing rapidly rising costs and tepid buyer demand. Work began on just over 5,500 homes in London last year, an 84pc drop compared to 2015, while fewer than 3,000 new-builds were sold in the capital between April and June this year, with just 589 going to UK individuals. The Home Builders Federation estimates an average of £76,000 has been added to the cost of building a home since 2020, and work has halted at one in five construction projects across the city, with the gates padlocked on 56 developments. Kier Group has said it will shift effort into infrastructure and construction given the volatility of the property market, and Barratt Redrow has cut its housebuilding forecasts for 2027, while average rent for a two-bedroom flat has hit record highs of almost £2,500 and London's population fell in 2025 for the first time in nearly 40 years outside the pandemic.
UK Housebuilders Surge on State-Backed 2.5% Deposit Scheme
British housebuilders rallied on Monday after the government announced a state-backed equity loan scheme to help first-time buyers purchase new-build homes with deposits of just 2.5%. The Ministry of Housing, Communities and Local Government said the scheme, called 'Your First Home,' will be confirmed at next month's Budget and will operate in England, supporting 2.5% deposits backed by 20% government-backed equity loans for first-time buyers purchasing a new-build property from a participating developer. Shares of Berkeley Group Holdings, Persimmon, Barratt Redrow, Taylor Wimpey, Bellway, Vistry Group and Crest Nicholson Holdings plc rose between 3% and 14.5%. Buyers will access the equity loans with an initial interest-free period, which the government said could save those who use the scheme hundreds of pounds per month compared with a 95% mortgage. The government said the scheme will help tackle the deposit barrier for first-time buyers and act as a stimulus for a new-build market facing challenging headwinds, with developers expected to make a contribution when signing up to help cover costs.
BKG.LSE · Regulation · Positive Government's 'Your First Home' state-backed 2.5% deposit scheme is a policy stimulus for new-build demand, lifting Berkeley shares.
BTRW.LSE · Regulation · Positive Barratt Redrow rose as the government's state-backed equity loan scheme boosts first-time-buyer new-build demand.
BWY.LSE · Regulation · Positive Bellway gained on the government's 'Your First Home' scheme supporting 2.5% deposits for new-build buyers.
CRST.LSE · Regulation · Positive Crest Nicholson rallied on the state-backed deposit scheme stimulus for the new-build market.
PSN.LSE · Regulation · Positive Persimmon rose as the government's equity loan scheme aims to tackle the deposit barrier and stimulate new-build sales.
TW.LSE · Regulation · Positive UK government's 'Your First Home' state-backed 2.5% deposit equity loan scheme is expected to stimulate new-build demand, benefiting Taylor Wimpey as a participating developer.
Barratt Redrow reported fiscal 2026 revenue of more than GBP6 billion, driven by higher home completions and a higher average selling price, with adjusted operating profit of GBP598.1 million slightly ahead of last year. Home completions rose 5% to 17,667, while adjusted profit before tax fell to GBP572.8 million on higher net interest costs and lower joint venture profits, and adjusted gross margin slipped to 15.3% with adjusted gross profit of GBP926.6 million. The company confirmed all GBP100 million of Redrow cost synergies in the second half, delivering a GBP73 million profit and loss benefit in FY26 and an expected annual contribution of approximately GBP95 million in FY27. Barratt Redrow ended the year with a net surplus position of GBP61.4 million, versus net indebtedness of GBP37 million a year earlier, and guided to FY27 completions of between 17,500 and 17,900, a year-end cash position of GBP400 million to GBP500 million, and a total capital return of GBP400 million including a GBP386 million share buyback plus an additional buyback of at least GBP100 million. Build cost inflation was 2% underlying for the year and is guided at 3% to 4% for the year ahead, while the land bank stands at 5.2 years of supply and the embedded gross margin fell 160 basis points to 17.3% from 18.9% at the end of December.
BTRW.LSE · Capital · Positive FY26 revenue topped GBP6bn with completions up 5% and adjusted operating profit of GBP598.1m slightly ahead, plus a GBP400m capital return including buybacks.
Housebuilders face £4bn class action over price collusion claims
Major UK housebuilders are facing a class action lawsuit potentially worth more than £4 billion, filed on behalf of over 700,000 buyers of new-build homes between October 2015 and June 2026. The claim accuses Barratt Redrow, Taylor Wimpey, Bellway, Berkeley Group, Persimmon, Vistry Group, and Countryside Partnerships of sharing sensitive information on prices, buyer incentives, and sales activity, which allegedly weakened competition and drove up new-build home prices. Compensation is estimated at between £2.2 billion and £4.5 billion, equivalent to £3,100 to £6,200 per affected homeowner. The lawsuit, managed by consumer rights advocate Mark McLaren, requires approval from the Competition Appeal Tribunal before it can proceed. It follows a Competition and Markets Authority investigation that resulted in a record £100 million settlement and commitments to stop sharing sensitive pricing information.
European stocks advanced on Thursday, with the FTSE 100 closing up 0.7% at 10,529.89, as the Dow Jones Industrial Average reached a new all-time high. The FTSE 250 added 0.3% to 23,161.41, while the AIM All-Share fell 0.7% to 771.92. In New York, the Dow rose 0.9% to a record, the S&P 500 gained 0.2%, but the Nasdaq Composite slipped 0.4%. Micron Technology soared 11% after its third-quarter results and guidance beat expectations, driven by AI demand for memory bandwidth. Bayer surged 19% after the US Supreme Court overturned a lower court ruling that had exposed the company to thousands of claims over its Roundup weedkiller, a decision JPMorgan analyst Richard Vosser said covers about 80% of filed glyphosate cases. In London, 3i Group jumped 11% on strong sales figures from its key investment Action, while Barratt Redrow climbed 4.6% after major shareholder Phoenix Asset Management Partners called for increased share buybacks. EasyJet rose 6.6% as it agreed to provide limited commercial information to potential suitor Castlelake, which had made a fourth bid proposal worth 650 pence per share. Oil prices remained subdued, with Brent crude trading at 74.42 dollars a barrel, well below recent highs, easing inflation concerns.
Phoenix calls on Barratt Redrow to accelerate share buybacks
Phoenix Asset Management Partners, a major shareholder in Barratt Redrow, is calling on the homebuilder to materially increase its share buybacks. Phoenix presented its analysis at the London Value Investor Conference, arguing that Barratt Redrow is materially undervalued and that aggressive buybacks would create significant value for long-term shareholders. The firm, which first invested in 1998, supports the company's business strategy but believes a new capital allocation approach is needed to exploit the depressed valuation. Phoenix says Barratt Redrow has substantial financial headroom to maintain its growth strategy while pursuing an aggressive buyback programme, and it has published its analysis at www.buybarrattback.com.
Segro bid rejection lifts FTSE 100 as gold and oil sink
The FTSE 100 closed higher on Wednesday, lifted by a surge in property stocks after Segro rejected a £12.6 billion takeover proposal from US logistics giant Prologis. Segro shares jumped 17%, sparking gains across the sector, with Tritax Big Box REIT up 6.4% and British Land and Land Securities both up 4.1%. Housebuilders also advanced, with Barratt Redrow and Persimmon rising 6.6% and 5.8% respectively, supported by a further fall in UK bond yields and Berkeley Group's full-year profit slightly ahead of guidance. The gains offset a slump in mining and energy stocks as gold fell to $4,014.40 an ounce and Brent crude slipped below $75 a barrel for the first time since the start of the Middle East war, dragging BP down 3.7% and Shell down 1.9%. The FTSE 100 closed up 32.78 points, or 0.3%, at 10,461.63, while the FTSE 250 added 0.8% and the AIM All-Share fell 0.7%.
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