Late Budget Threatens Demand for New Homes, Barratt Redrow Boss Warns
Barratt Redrow cautions that the delayed Budget adds risk to housing demand, while sticking to a 17,200–17,800-home target for the year to June 2026.
Britain’s biggest housebuilder, Barratt Redrow, warned on Thursday that the Chancellor’s late Budget could dent demand for new homes as policy uncertainty extends ahead of the new date now set for November 26.
Barratt Redrow said it remains on track to deliver between 17,200 and 17,800 homes in the year to the end of June 2026, after reporting 16,565 completions in the previous year, down from 17,972.
The company attributed the revised risk to the extended period through to the Budget and to uncertainties around general taxation and housing policy, saying the delay had introduced additional risk to its outlook.
David Thomas, Barratt Redrow’s chief executive, said the group had delivered a solid performance in a tough market and described its 2024 acquisition of Redrow as transformative. He stressed that the deal had positioned the business to navigate a challenging climate while pursuing its long-term growth strategy.
Analysts viewed the Budget timing as potentially delaying buyers’ decisions during the crucial autumn selling season. Russ Mould, investment director at AJ Bell, said the late Budget could leave prospective buyers waiting for tax clarity before committing to big purchases, potentially weighing on housing demand in the near term.
The warning also cast fresh doubt over Labour’s target to build 1.5 million homes in this Parliament, highlighting how fiscal policy and housing taxation signals could influence private-sector activity as policymakers weigh new cost pressures and financing conditions.
Industry observers note that while Barratt Redrow has emphasized its pivotal role in housing supply, its near-term performance will hinge on macroeconomic developments and policy signals in the coming weeks. The company has emphasized that its growth remains anchored in a disciplined development pipeline and execution on its integration of Redrow, which the leadership argues has strengthened its scale and market reach.
As the housing market faces ongoing policy headwinds, Barratt Redrow’s leadership signaled a cautious but confident stance, underscoring that the firm intends to meet its stated build target while navigating a Budget environment that remains clouded by uncertainty.