Barratt Redrow Navigates Market Headwinds, Maintains FY26 Outlook

Barratt Redrow PLC (LON: BTRW) has released a trading update for the 17-week period ending October 26, 2025, revealing a resilient performance amidst challenging market conditions and pre-budget uncertainty.

The company's forward order book remains robust, and cost synergy targets from the Redrow acquisition are progressing well, reinforcing confidence in its medium-term growth strategy.

The net private reservation rate per week stood at 0.57, slightly below the previous year's 0.59, reflecting a decrease in sales to the private rental sector.

Total home completions increased by 7.9% to 3,665 homes, compared to 3,396 in the same period last year. The forward order book totaled 10,669 homes, valued at £3,281.4 million.

Barratt Redrow is 60% forward sold with respect to FY26 private home completions, slightly below the 62% recorded last year. Of this, 64% are either completed or exchanged, compared to 65% in the previous year.

The group is making significant strides in its integration of Redrow, with confirmed cost synergies now reaching £80 million, an £11 million increase since June 29, 2025, and remains on track to deliver £100m of cost synergies. An incremental £45m of cost synergies will be delivered in FY26.

The company's land bank remains a key asset, with approximately 100,000 plots owned and controlled, representing 6.2 years of supply based on FY25 completions. This includes 87,700 owned plots and 12,300 contracted or controlled plots.

Barratt Redrow also holds approximately 145,000 strategic plots and Gladman's promotional land portfolio of approximately 114,000 plots.

Based on solid reservation activity, Barratt Redrow maintains its FY26 guidance for total home completions between 17,200 and 17,800 homes.

Around 40% of completions are anticipated in the first half, reflecting the typical seasonality of completions. The company's FY26 performance remains dependent on normal seasonal trading patterns and the impact of the upcoming Budget on demand.

CEO David Thomas commented, “We have delivered a resilient performance over the period despite challenging market conditions and increased uncertainty ahead of the November Budget…we remain focused on operational excellence as we target sustainable growth over the medium term to reach 22,000 home completions per year.”