Barratt Redrow, one of the UK's leading housebuilders, has sounded a stark warning to incoming Prime Minister Andy Burnham that without radical action on property taxation and regulatory burdens, the sector will continue to suffer from acute pressures. According to company data, this inaction would translate into an estimated 40% decline in new housing starts by 2027, with nearly 1 million homes stuck in development limbo across the country.
At its investor update on Wednesday, the FTSE 100 firm highlighted that urgent reforms are necessary to "tackle the housing crisis, create jobs and drive economic growth." Notably, Barratt Redrow reiterated its demand for a complete abolition of stamp duty for first-time buyers, citing Zoopla data which shows that nearly 80% of first-time movers in London still face this tax burden due to inflated property values in the capital. This is despite the government's current relief cap of up to £300,000.
Mr Burnham has previously expressed support for affordable housing initiatives and a potential overhaul of property taxation. However, industry leaders, including FTSE 250 firm Berkeley, have cautioned that decisive government intervention is critical to unlocking material improvements in the sector. Without strong leadership, they warn of "no prospect" of meaningful progress.
Alongside its policy recommendations, Barratt Redrow announced a significant £386 million share buyback programme for the year leading up to July 2027. This move aims to capitalise on what it sees as a "significant discount" in its share price relative to its net assets – a price that has fallen by nearly 60% over the last five years, reaching its lowest point in over a decade recently.
The company's full-year results show it built 17,667 homes in the year to the end of June, meeting the upper end of its guidance. This included 3,774 affordable homes. Notably, Barratt Redrow's order book for future projects stands at £2.8 billion, a slight decrease from the previous year. However, the company warns that challenges lie ahead, citing building cost inflation of three per cent following the Iran conflict outbreak and recent energy price volatility and supply chain disruptions due to US-Iran tensions.