Barratt Redrow urges government to back first‑time buyers as completions fall short of targets

Britain’s largest housebuilder warned the government on Wednesday that without renewed support for first‑time buyers it risks failing to resolve the housing crisis and accelerating intergenerational inequality, after reporting a shortfall in annual home completions.

Barratt Redrow told investors that affordability, macroeconomic uncertainty and weak consumer confidence remain key headwinds despite easing mortgage rates and the government’s supply‑side reforms. The combined group reported 16,565 total home completions, including joint ventures, in the 12 months to June 30 — below its internal aim of 16,800 to 17,200 and down on the 17,972 homes built in the prior year when Barratt Developments and Redrow operated separately.

The group, formed after Barratt’s £2.5 billion takeover of Redrow last October, has a medium‑term target of building 22,000 homes a year. In a trading statement and results update, chief executive David Thomas said it is vital that government policy focuses on reforming the planning system, removing barriers to investment and supporting purchasers, particularly first‑time buyers, if the sector is to deliver the homes the country needs.

Barratt Redrow welcomed Labour’s 10‑year, £39 billion Affordable Homes Programme announced in this year’s spending review but said demand‑side measures — long a feature of the housing market — are necessary to drive “rapid and sustained private development growth.” The company warned that the absence of first‑time buyer support could lead to rising social and intergenerational inequality as access to homeownership becomes increasingly dependent on parental savings and financial assistance.

Higher build costs, a slower‑than‑expected recovery in housing demand and continued planning delays have contributed to a tougher year across the sector, the company said. Those factors have left the market‑wide rate of completions trailing the pace required for the government to meet its pledge to build 1.5 million new homes during this parliament — equivalent to about 300,000 homes a year.

The group reported an underlying pre‑tax profit of £488.3 million for the year, up 26.9% on the same period a year earlier, with revenues rising 33.8% to £5.58 billion. Barratt Redrow said the results reflect improved sales rates and pricing in parts of its portfolio, while highlighting the ongoing operational challenges that have restrained output.

Smaller rival MJ Gleeson made similar remarks earlier this week, saying more planning reform is needed if the government is to hit its ambitious housebuilding targets. Industry executives and analysts have repeatedly pointed to planning system blockages as a major constraint on new supply, even as ministers and officials have emphasised measures to unlock land and expedite permissions.

Investors in Barratt Redrow responded modestly to the update: the company’s shares were up about 1.3% in early trading to 371p. The board said it remains focused on achieving the enlarged group’s medium‑term delivery target while calling on policymakers to complement supply initiatives with demand‑side interventions to restore buyer confidence and accelerate private development.

The trading update and plea to government come as housing remains a central political and economic issue. Ministers face pressure to reconcile targets for large‑scale housebuilding with persistent affordability problems and constraints on construction capacity, finance and planning resources. Barratt Redrow’s message frames demand‑support measures for first‑time buyers as a necessary complement to existing funding for affordable housing if the government is to meet its stated ambitions for new homes during this parliament.