Housebuilder Barratt Redrow has reiterated its completions guidance as it delivers a “strong” third-quarter performance, despite “heightened macroeconomic uncertainty” amid the conflict in Iran.
The developer said it was “on track” to deliver total home completions for the year of between 17,200 and 17,800, including 600 via joint ventures. It added that it was also on track to hit full-year pre-tax profits despite a 13.6% drop in its H1 pre-tax profits.
In a trading update for the 13 weeks to 29 March 2026, Barratt Redrow delivered 3,273 homes, down 11.9% compared with 3,717 completions during the same period a year prior. This brings total home completions in the financial year to date to 10,718, marginally down from the previous year’s 10,824.
Outgoing chief executive David Thomas said that despite the “heightened macroeconomic uncertainty, we expect the Middle East conflict to have limited impact on FY26 performance, given our strong forward sales position and advanced build programme”.
However, the firm cautioned that “visibility beyond the current financial year remains more uncertain”.
During the period, Barratt Redrow approved 2,465 plots for purchase across 14 sites, down from 7,574 plots across 37 sites in 2025, bringing total approvals for the financial year to date to 4,010 plots across 29 sites (versus 15,301 across 82 sites in 2025). The company said the reduced level of land approvals was a result of its “disciplined approach to land purchasing, underpinned by the strength of our existing land bank”.
It said: “Now, with a less certain backdrop, given recent geopolitical events and their likely impact on mortgage rates and build-cost inflation, we are being even more selective.”
The group now expects total land approvals for the financial year to stand between 7,000 and 9,000 plots, below previous guidance. This follows Berkeley Group earlier this month announcing it was halting land acquisitions under current market conditions.
Barratt Redrow reported a forward sales rate for FY26 of 94%, down from 96% last year, with total forward sales as at 29 March 2026 valued at £3.54bn, up on the £3.13bn as at 30 March 2025.
Thomas added: “Barratt Redrow had a solid third quarter, with a resilient reservation rate underpinned by good customer demand.
“Looking ahead, we have a proven track record of navigating uncertainty and remain confident in our financial strength and ability to adapt to changing market conditions.”
Year-end net cash is expected to be between £550m and £650m, £150m above the group’s previous guidance, which it said reflected “the timing of legacy building remediation payments and reduced land investment”.
Oli Creasey, head of property research at Quilter Cheviot, said the group’s trading update “shows a company in good health”.
“Barratt had already committed to buying less land this year compared with what had been sold in order to optimise the size of its landbank; however, that guidance has today been reduced by a further 3,000 plots, meaning that only around half of the land sold this year will be replaced,” he added.
“If sales volumes were to fall by 3,000 plots, that would reflect an approximate 17% drop year on year. To be clear, some or even all of the 3,000-plot reduction could be part of the land bank optimisation, though it was not part of the guidance provided by the company three months ago.”
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