Barratt Redrow, Britain’s largest housebuilder, announced on Wednesday, September 16, 2026, that it has slowed land acquisitions and lowered its sales forecast for the upcoming year. The company cited reduced consumer confidence and rising mortgage rates following the start of a conflict involving the U.S., Israel, and Iran in late February. Despite these adjustments, the firm reported a 48% increase in pre-tax profit to £363.5 million for the year ending June 28.
The shift in strategy follows a period where the company initially expected to approve between 10,000 and 12,000 new land plots. However, Barratt Redrow reported that only 3,029 plots across 27 sites were approved for purchase during the year, as the company moved to a "targeted and highly selective" spending model. The firm attributed the change to rising build costs and economic uncertainty stemming from the Middle East conflict.
For the 2027 financial year, Barratt Redrow now anticipates completing between 17,500 and 17,900 home sales, down from a previous estimate of 17,700 to 18,200. The company noted that the positive momentum seen in early 2026 was reversed by the geopolitical situation, which halted interest rate cuts by the Bank of England. Additionally, the firm stated that government planning reforms would not be sufficient to address the housing crisis without further measures to reduce taxes and regulatory burdens.
The reduction in land buying and sales targets by the housebuilder affects prospective homebuyers, particularly first-time buyers who are facing what the company described as "affordability challenges." With the firm lowering its completion forecast, the total volume of new housing stock available to the market will be smaller than previously planned. The company noted that mortgage rates rose in response to the international conflict.
The company approved roughly 7,000 to 9,000 fewer plots than its original high-end projection. Furthermore, Kier Group announced on Tuesday, September 15, that it will stop new investment in property development, while Berkeley Group has called for stamp duty reform. These combined actions indicate a broader contraction that could challenge the Government’s target of building 300,000 new homes annually.
Barratt Redrow Chairwoman Caroline Silver stated that current reforms are "not enough" and that the government must address tax and regulatory burdens to ensure the viability of housebuilding. While the company's shares rose by 9% on Wednesday following news of a £400 million return to shareholders, the long-term output of affordable housing remains constrained. Investors and homebuyers will look toward the 2027 financial year to see if the firm meets its revised completion targets.