Barratt Redrow’s home completions dropped by 7.8% during the year to June 2025, with the newly merged housebuilder also disclosing £248 million in legacy property liabilities.
In a trading update covering the 52 weeks to 29 June 2025, the company reported 16,565 completions, down from a combined total of 17,972 the previous year. The final figure fell below the previously guided range of 16,800 to 17,200 homes.
The company attributed the decline primarily to lower-than-expected international and investor completions in its London operations. However, it noted that a stronger forward order book and steady reservation rates in the second half of the year limited the fall in completions during that period to 4.7%.
The average private selling price increased by 2.8% to approximately £380,000.
Despite the fall in output, Barratt Redrow said adjusted pre-tax profit was in line with expectations at £582.6 million, including adjustments related to the Redrow acquisition.
Legacy property liabilities totalled £248 million, including £98 million in charges during the second half of the year. Of this, £80 million relates to fire safety issues at a scheme of four buildings completed in 2002 in the company’s Southern region. An additional £18 million was linked to further costs at a large London development already covered under the existing provision for external wall systems.
A further £150 million has been set aside for issues identified at up to five Redrow schemes in London involving reinforced concrete frame (RCF) construction. The company stated in its half-year update that a review of these RCF buildings is ongoing.
During the year, Barratt Redrow operated from an average of 405 active sales outlets, down from the previous aggregate of 443.
Looking ahead, the business noted that recent planning reforms are not yet fully implemented at the local authority level. It said ongoing delays and unfavourable planning decisions are likely to hold back expansion, resulting in a broadly flat average outlet count in the 2026 financial year, including joint ventures.
Due to this revised outlook, home completions in 2026 are now forecast to range between 17,200 and 17,800 units.
The company also reported progress on post-merger integration. Cost synergies of £69 million have been confirmed so far, toward a target of at least £100 million. Of this, £15 million has been reflected in 2025 results, with £45 million expected in the next financial year.
“Against a challenging market backdrop, we have delivered a solid performance this year,” said David Thomas, Barratt’s CEO. “Our adjusted profits are in line with market expectations, despite home completions being slightly below our guided range.
“Although 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 undersupply of housing in this country.”
