(Reuters) -Britain's largest homebuilder Barratt Redrow reported total home completions for fiscal year 2025 below its expectations on Tuesday, citing fewer international and investor completions than
Barratt Redrow Falls Short of Home Completion Goals, Cites Buyer Caution
(Reuters) -Britain's largest homebuilder Barratt Redrow on Tuesday said home completions missed its expectations for fiscal 2025, as concerns around affordability resurfaced and deterred private buyers, sending its shares down by more than 11% in early trade.
The continued slowdown in Britain's economy is weighing on consumer confidence and tempering recovery in housing demand, overshadowing signs of stabilizing mortgage rates and government incentives that have recently offered some optimism.
"Homebuyer confidence remains fragile," the company said in a trading statement, as it echoed concerns around affordability raised by rivals, including Vistry.
"We have seen some improvement in mortgage market competition and availability but underlying private sales activity has remained sensitive to consumer caution, driven by the economic backdrop and the ongoing affordability challenges faced by homebuyers," Barratt Redrow said.
Shares of the FTSE 100-listed company hit their lowest since October 2022 on Tuesday and pulled the broader housing index down 4.7%.
The group completed 16,565 homes during the year ended June 29, below its own forecast of between 16,800 and 17,200 homes, particularly hurt by weak demand from domestic and international homebuyers in London.
Barratt Redrow, which was formed after the merger of the two eponymous companies last year, said it expected fiscal 2025 adjusted profit before tax and charges to be in line with a company-compiled analysts' consensus of 582.6 million pounds ($783.1 million).
For fiscal 2026, Barratt Redrow expects home completions to rise to between 17,200 and 17,800 homes.
($1 = 0.7441 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy and Tomasz Janowski)
