LONDON, June 24, 2026, 12:18 BST
Barratt Redrow shares gained 1.8% to 268.29 pence by 1208 BST Wednesday. The stock stayed about 44% under its 52-week high. The housebuilder’s market cap stood close to £3.76 billion.
Barratt shares traded at about 62 pence for each £1 of tangible net assets, stripping out goodwill and other intangibles. The company had tangible assets of 433 pence per share as of Dec. 28. That 38% discount suggests worries beyond softening home demand. First-half revenue rose 10.5%, but gross margin before acquisition effects dropped to 15.0% from 17.0%. Adjusted pretax profit slid 13.6% to £199.9 million.
Barratt is cutting back on land buying. The company will sign off on 7,000-9,000 new plots for purchase in its 2026 financial year. It aims to finish 17,200-17,800 homes in the same period. At the midpoints, that’s 46 plot approvals for every 100 homes built, compared to 63 from the past land plans. This ratio doesn’t match current-year stock, but shows how much Barratt is slowing purchases.
Barratt lifted its expected year-end net cash target to £550 million-£650 million, up £150 million from before, after spending less on land. Chief Executive David Thomas said the company will stick with “selective land investment and rigorous cost control.” Barratt Developments
Barratt held 94,221 plots as of Dec. 28, good for 5.6 years of supply. The company’s medium-term goal calls for 3.5 years of owned land and another year in controlled land, putting it 1.1 years above target. That extra cover gives Barratt room to cut surplus land without affecting planned output.
Savills data put England’s annual completions at an average 167,500 through 2029/30, missing the government’s 300,000 target by about 44%. Over the next two years, new supply is set to stay a little above 150,000. Planning consents are projected to drop 39% over three years to 180,000 in 2025, with starts down 31%. Build costs climbed 17.5% in four years to February, while house prices rose only 4.5%. “The underlying picture is becoming increasingly challenging,” said Emily Williams, director of residential research at Savills. With slower price growth and a thinner development pipeline, land values might get a floor, but higher costs are harder to carry. Mortgage Solutions
Barratt trailed rivals in Wednesday trading, with the stock up 1.8% at 1208 BST. Persimmon was up 3.0% by 1206 BST, while Taylor Wimpey gained 2.5% at 1213 BST.
Barratt’s discount could stick around. RBC analyst Anthony Codling said in April the land restraint was “a wise call,” but traders now expect at least a 25 basis point hike from the Bank of England before year-end. Mortgage costs keep rising, which may hit demand. Barratt has already said higher energy prices might push up material costs in the year starting July. Reuters
Barratt’s full-year trading update lands July 15. Investors are eyeing the 17,200-17,800 completions range and watching expected net cash, which is forecast between £550 million and £650 million. There will also be focus on any details about 2027 build costs and land approval rates.
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