Barratt Redrow has reported a resilient third quarter, with private reservation rates ticking up and the housebuilder reaffirming full-year guidance despite growing economic uncertainty.
The group’s net private reservation rate rose 3.2% to 0.64 per outlet per week, up from 0.62 a year earlier. Including contributions from the private rental sector and multi-unit sales, the rate climbed 6.3% to 0.67.
Barratt’s shares were 2% higher at the time of writing.
Total home completions in the period came in at 3,274, down from 3,717 in the prior year.
Barratts attributed the decline to a particularly strong comparable quarter last year, when buyers rushed to beat the end of stamp duty relief. Strip this out, and they aren’t doing too badly considering the current climate.
Year-to-date completions stand at 10,718 homes, and Barratt Redrow remains on track to deliver between 17,200 and 17,800 completions for the full year, including around 600 through joint ventures.
The order book is in good shape. Total forward sales jumped 11.2% to 11,395 homes, worth £3.54bn, while the private order book edged 2.5% higher to 5,643 homes. The group is now 94% forward sold for FY26.
On costs, management is sticking with guidance of around 2% build cost inflation for the year, rising to roughly 3% in the second half, though it flagged that higher energy costs could feed through into material prices in FY27.
Like many other listed housebuilders, land purchases have slowed markedly, with just 4,010 plots approved year to date, compared with over 15,000 in the same period last year. The group said this reflects both its disciplined approach and a lack of attractive opportunities, as it works towards a target of 3.5 years of owned land supply.
Year-end net cash is now expected to come in between £550m and £650m, around £150m ahead of previous guidance, helped by the timing of building remediation payments and lower land spend.
In terms of guidance, there was an element of cautiousness. While FY26 adjusted profit before tax remains on track with consensus, the group warned that Middle East conflict is adding to economic uncertainty and could prolong the higher interest rate environment. Visibility beyond the current year, it said, remains limited.