"Barratt Redrow's disciplined approach to land purchases reflects a broader caution in the housing market, driven by geopolitical uncertainties and rising costs. The company is scaling back its expected land acquisitions, which could hinder the government's ambitious housing targets."
"The projected new housing completions for 2024-25 stand at 208,600, a 6% decrease from the previous year and far below the necessary average of 300,000 homes annually. This shortfall underscores the challenges facing the housing sector amid rising interest rates and construction costs."
"Despite recent solid trading and an expected increase in completions for the financial year, the cautious stance on land purchases by Barratt Redrow indicates a significant shift in market conditions, influenced by external economic factors and rising operational costs."
The largest housebuilder in England, Barratt Redrow, is reducing its land purchases from 10,000-12,000 plots to 7,000-9,000 due to uncertainties from the Iran war. This reduction translates to a budget cut of approximately £100 million from an £800-900 million budget. The government's target of 1.5 million new homes appears unattainable without increased activity from major builders. New housing completions for 2024-25 are projected at 208,600, significantly below the required 300,000 annual average, reflecting a cooling market influenced by rising interest rates and energy costs.
Read at www.theguardian.com
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