Earnings call transcript: Barratt Redrow Q4 2025 sees stock rise on strategic gains

Barratt Redrow PLC reported its Q4 2025 earnings, revealing an EPS of $0.08 and revenue of $3.3 billion, contributing to a robust 33.8% year-over-year revenue growth. Despite missing home delivery guidance, strategic moves like the Redrow integration and a planned share buyback have positively influenced investor sentiment, reflected in a 3% pre-market stock rise. InvestingPro analysis indicates the company maintains strong financial health with an impressive current ratio of 4.08.

Key Takeaways

• Barratt Redrow delivered 16,565 homes, missing guidance by 235 homes.
• The company holds a strong net cash position of £772 million.
• A new share buyback program of at least £100 million is planned.
• The stock rose 3% in pre-market trading.

Company Performance

Barratt Redrow’s overall performance for Q4 2025 was mixed. While the company missed its home delivery target, it maintained a robust financial position with a net cash reserve of £772 million. The integration of Redrow and the realization of cost synergies have been progressing well, contributing to investor confidence. However, challenges in the London market and a reduction in first-time buyers remain concerns.

Financial Highlights

• Revenue: $3.3 billion
• Earnings per share: $0.08
• Net cash: £772 million

Market Reaction

Following the earnings announcement, Barratt Redrow’s stock rose 3% in pre-market trading, moving from $366.2 to $377.2. The stock is currently trading at $388.4, a 1.6% increase from the last close. This upward movement indicates positive investor sentiment, likely driven by the company’s strategic initiatives and financial strength.

Outlook & Guidance

For FY2026, Barratt Redrow anticipates completing between 17,200 and 17,800 homes. The company expects build cost inflation of 1% to 2% and plans to maintain a flat outlet position. Additionally, a share buyback program of at least £100 million is set to commence, reflecting confidence in future performance.

Executive Commentary

David Thomas, Group CEO, highlighted the benefits of the Redrow acquisition, stating, "We are already seeing benefits from the Redrow acquisition." He also emphasized the company’s leadership in customer service and build quality, saying, "We lead the industry on customer service and build quality."

Risks and Challenges

• Ongoing challenges in the London market due to affordability issues.
• Reduced first-time buyer numbers since Q4 2022.
• Potential impacts of build cost inflation.
• Planning delays and legislative uncertainties.
• Competitive pressures in the homebuilding industry.

Q&A

During the earnings call, analysts questioned the company’s strategies to mitigate London market challenges and inquired about potential legislative improvements to address planning delays. The discussion also covered cash flow expectations and land purchasing plans, highlighting the company’s strategic focus on larger sites and triple branding.

Full transcript - Barratt Redrow PLC (BTRW) Q4 2025:

Conference Call Moderator: Hello and welcome to the Barratt Redrow PLC Full Year Trading Update conference call. Today’s call is being recorded. For the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end. This can be done by pressing star 1 on your telephone keypad. I will now hand you over to David Thomas, Group Chief Executive Officer, to begin today’s conference. Please go ahead, sir.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Good morning everyone and thank you for joining us on our full year trading update call here with me this morning. As usual I have Mike, our CFO, and first of all I’d like to start by thanking all of our employees, our subcontractors, and our suppliers for their continued commitment and hard work. In February at our Capital Markets Day we set out our medium term guidance and our strategy for getting there. As a reminder, using the strength of our three leading brands, our land pipeline, and our operational experience and expertise, we are targeting the delivery of 22,000 homes a year from 32 divisions and around 500 outlets.

Whilst we have experienced some temporary delays on completions and planning in recent months, we have delivered adjusted profit before tax in line with consensus and we remain confident in our medium term targets and in the long term demand for our high quality homes. Starting with trading on private reservation rate, we were comfortably ahead of last year on both a reported and aggregated basis. As guided, we operated from an average of 405 active sales outlets across the year. While the Government’s national planning reforms are positive, they are yet to come into law and we have continued to see some planning delays at a local level. As a result, several outlets forecast to open in the fourth quarter of FY2026 have been pushed into the first half of FY2027. We expect a broadly flat outlet position in FY2026 compared to FY2025.

However, these are temporary delays and we remain confident in our medium term target of completing 22,000 homes per year across around 500 active sales outlets.

Mike, CFO, Barratt Redrow PLC: We.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Delivered 16,565 homes across the year, 235 homes below our guidance range. This is a short-term timing issue which does not impact our medium-term guidance and broadly was due to 300 fewer completions than expected of private rental sector and multi-unit sales in London. These homes will be delivered in FY26. Meanwhile, we are pleased that we have delivered adjusted profit before tax in line with consensus, which is testament to our team’s commitment to drive efficiencies and cost synergies. We expect completions in FY26 will be between 17,200 and 17,800, helped by our order book which is up over 4% on last year, but tempered by the challenges that I’ve mentioned in the planning system and the broadly flat sales outlet position. The Redrow integration is progressing well with more than two-thirds of the £100 million cost synergies target already confirmed.

Progress is also being made on revenue synergy sites. We have already submitted 16 of the 45 identified incremental outlets for planning approval, five of which have already been granted. As demonstrated by these positive outcomes on both cost and revenue synergies, our teams are making rapid and meaningful progress towards our targets. In line with our previous guidance, we expect build cost inflation to be around 1% to 2% in FY26 inclusive of procurement synergy savings in FY25. Our charge in relation to adjusted items will be approximately £229 million. Around £102 million of these costs relate to the Redrow transaction itself and the subsequent reorganization and restructuring taking place to unlock cost synergies. We are also recognizing our CMA commitments charge of £29 million and the remaining £98 million is related to legacy property provision charges, of which there are really two key points to draw out.

The majority of the provision charge is centered on two developments. The first is in our southern region where a fire safety issue has been identified in four buildings accounting for £80 million of the provision uplift. The second is related to a large site in London where action is already being taken and where an uplift in the provision of £18 million is required to complete the remediation. In addition, as we flagged at the half year, we have been reviewing the design of concrete frames at Redrow’s legacy properties given our previous experience in this area. This review has resulted in the identification of five developments which are now in scope for investigation, and we have made an adjustment of £106 million net of deferred tax, which under IFRS 3 creates a fair value adjustment at the acquisition date.

We are tackling these problems head on, and as ever, our building safety unit is working hard to ensure all affected buildings are assessed and remediated diligently and effectively. We are also very focused on recovering costs from third parties in respect of issues, fire safety, and reinforced concrete frames. Our successful Supreme Court ruling in May this year has clarified the responsibility of companies in the supply chain, and we will seek to recover costs wherever possible. We finished the year with a strong balance sheet and net cash of £772 million as announced in February. The next tranche of our share buyback program of at least £100 million per annum will commence shortly. Our commitment to industry-leading quality and service has remained at the heart of what we do and is vital with a more challenging market backdrop.

Once again, our site managers won more Pride in the Job awards for the highest standards in home building and build quality than any other housebuilder for the 21st consecutive year. With 115 awards across the business, and for a 16th year, we have been recognized as a five-star housebuilder, further extending our unmatched record. To conclude, despite the shortfall in completion numbers, the financial performance of the business has remained solid, and we start FY2026 in a strong position. We are already seeing benefits from the Redrow acquisition, with cost synergies being delivered ahead of schedule, a new divisional structure in place, and revenue synergies progressing well. We look forward to the new planning legislation unlocking permissions at a local level, and we continue to drive growth over the medium term.

We lead the industry on customer service and build quality, delivering high-quality developments across our three leading brands, which in turn put us in a unique position to rapidly accelerate volume in the medium term. Thank you, and we will now be very happy to take questions.

Conference Call Moderator: Thank you, ladies and gentlemen. As a reminder, if you would like to ask a question on today’s call, please signal by pressing STAR 1 on your telephone keypad. That is STAR 1 for your questions today. Up first, we have a question from Aynsley Lammin from Investec. Please go ahead, your line is open.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Thanks.

Mike, CFO, Barratt Redrow PLC: Good morning. Just two questions for me please. First of all, on the plan, just a bit more color if you could, on what’s actually kind of been frustrating there, where the visibility was. Obviously you targeted getting back to kind of FY2024 sites and looking forward, when would you expect some of those kind of frustrations and obstacles to lift? Is it legislation being passed? I mean, when should we expect the planning to really start to ease on the ground? The second question, just on, I think you say in the statement you think there’s some need for demand side support to ease the constraints of the private home buyers. Just wondered what you meant by that explicitly. Obviously you’ve had the mortgage guarantee scheme be announced recently, this week. Any views on that?

Do you think that’s sufficient or do you think the market needs more on the demand side? Just interesting to hear your views there.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Okay, thank you. Aynsley, I’ll just cover both of those. I think in terms of planning, really the positive thing is, and we said previously, that we see that the planning changes that the government are proposing are very positive through the National Planning Policy Framework and through the Planning and Infrastructure Bill. These are very, very positive changes. The reality is that the Planning and Infrastructure Bill is not yet in law and won’t be in law until the autumn of this year. We would then expect there to be a fairly rapid improvement. I think if you go from a July start in 2024, the autumn is probably a little later than we would have anticipated as we came through 2024. Generally, the direction of travel is positive for local authorities beyond those legislative changes.

They have no real reason to make changes at this point in time, and therefore we have seen delays in terms of where we expected to receive planning approvals to allow us to then get on site. As we outlined in the statement this morning, we see that impacting FY26 in terms of delivery, but clearly it’s a delayed effect into FY27. In terms of demand side support, we’ve said that there is a case for a government-backed demand side support, but we recognize that that is the decision of the government and therefore two things. First of all, that is largely around affordability and therefore there are challenges for the consumer, particularly in areas like London and the southeast. I think for ourselves, we recognize that there’s got to be self-help from the industry, and we previously outlined the offers that we’re putting in place for consumers.

For example, deposit match, we continue to look at whether we can do anything from a shared equity point of view, and we push hard for second and subsequent time buyers in terms of our part exchange offer. We recognize that those offers and incentives are very, very important for us to have for our potential customers. Thanks very much. Thanks, Aynsley.

Conference Call Moderator: Thank you. We’re moving on to a question from Jose Adeogun from Morgan Stanley. Please go ahead.

Mike, CFO, Barratt Redrow PLC: Thank you. Good morning. I just have two questions. The first is just around in terms of the building blocks for FY2026. You’re guiding to roughly flat volumes in FY2026. We see how price and build cost inflation offsetting each other. There are puts and takes on earnings into next year. Synergies are positive but then some costs on national insurance. Can you just help us with the building blocks for FY2026 profit before tax? Is there scope to grow this modestly year on year? The second question is just around the building safety provisions. If you could just help to talk in detail about these provision increases and help us to understand if there are other potential costs we need to think about. In other words, is this a precursor of more second perhaps, or what underpins your confidence that this is very discreet to these sites you’ve identified?

Thank you. Good morning.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Thank you. I think Mike will take both of those questions.

Mike, CFO, Barratt Redrow PLC: Morning, Peter. Thanks for those. I think on the first point on FY26, you’ve actually done quite a good job of outlining the building blocks there. If we think about volumes, clearly, we’ve delivered just over 16,500 homes this year, and our guidance for next year is between 17,200 and 17,800. At the midpoint, that would be an uplift of about 1,000 homes. When you think about that, given flat outlet numbers, and we’re not really expecting any change in sales rates in terms of market demand, that uplift will come partly from the units that we’ve rolled over that David talked about earlier from FY25 into FY26. We also have the benefit of 12 months of Redrow in our numbers in FY26 compared to 10 months for the current year, so that gives us a bit of an uplift there. That’s the volume side.

As you say, on house price inflation, where we’ve been seeing in the spring underlying house price inflation running at about 1%, I think that has softened slightly as we’ve come into the end of the year, so probably running slightly below 1% now. In terms of build cost inflation, our guidance at 1% to 2% is still in place. That’s still how we see it coming through. That does include some modest benefits from procurement synergies in the build cost inflation numbers. To be honest, in FY26, that is very modest. It’s only a few basis points, but we would expect that will broadly play a draw. As you rightly say, we expect an incremental £45 million of cost synergies coming through that will be offset. Obviously, we’ll have a full year of Redrow overhead. We’ll have the National Insurance annualization in that number as well.

You can put those building blocks in place coming down from volume and take a view on what the profit before tax number will be. Moving on to provisions, there are really, I guess, three moving parts in what we’ve announced this morning. The first point I’d make is that in the overall portfolio that we’ve previously been provided for, the cost position on that portfolio has been stable through the year. We haven’t seen material movements in that portfolio, and of the 408 buildings that we have within that active portfolio, about a third of those buildings are in the process of closing down the remediation where we’ve actually been through the process and we’re coming out the other end. I think on the core we’re actually making good progress and we have a good handle on the costs there.

There are three things that have happened in the year that we’re discussing this morning. The first is the development down on the south coast where we’ve had a fire risk assessment done by the building owner during the second half, and that showed us that some remediation work is required at that development of four buildings. We estimate the cost of that work to be about £80 million. From the work we’ve done, we’ve looked at the build typology, the designers, the contractors, and that kind of thing. We think that the particular characteristics of that development mean that there’s no wider issue in the portfolio. This is contained in that one development. The second movement is £18 million, which is in relation to development in South London where we were already doing remedial work both for fire safety and reinforced concrete frame.

The scope and cost of that development has increased during the half as we progress through the works. I don’t think that signals any wider issue in the portfolio; that is specific to that development and those buildings that we’re working on there. The third movement is the reinforced concrete frame provision that we’ve taken in relation to the Redrow portfolio. That’s £150 million provided in the opening balance sheet. What’s happened there is since we acquired the business in October, we’ve been able to do some very detailed engineering analysis of Redrow buildings that were designed by the same design firm that we know we’ve had issues with in our portfolio. We’ve been doing that work since October.

We flagged at the half year that that was ongoing and we were doing some investigation, but the nature of the investigation is actually some quite detailed computer modeling and engineering analysis that does take several months to complete. We’ve formed a view of that as we’ve come through the second half. There are five developments where we think there is remediation work to be done, and our estimate is based on the initial work that we’ve been able to do and also our experience on other developments in our own concrete frame portfolio. We estimate the cost of the works to be £150 million. We provided that into the opening balance sheet. Hopefully that helps you understand the different moving parts in the portfolio and also why we don’t believe there is any wider issue on costs in the underlying portfolio.

These are specific issues that we think are contained. Thank you very much.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Thanks, Mike.

Conference Call Moderator: Thank you. From Citi, we now have Amy Gala with our next question. Please go ahead. Yes, thank you. Just two questions from me as well. First one is the follow up on planning. Can you give us some color as to how many sites or outlets are currently pending planning permissions or are in that sort of bucket where you have seen meaningful delays? We can understand the magnitude of this. The second question was, as a follow up on the outlet point, on the revised assumptions, how many outlets do we plan to now open in FY2026? The last one was just under legacy cladding works. Do we have a more clearer timeline as to when we plan to complete bulk of the works?

Is it in the next three years or is it a longer tail that we now need to factor in in terms of the overall completion of this legacy cladding work?

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Yeah. Okay, so Amy, first of all, good morning. I mean, I think in terms of planning, I’ll pick it up generally in terms of planning outlets, and I’m sure that Don can talk to you offline in terms of any more specific numbers. I’ll also just talk briefly about legacy cladding and Mike will pick up in terms of FY2026. I think in terms of planning outlets, as you know, we’ve always disclosed our planning approvals over a six month or a 12 month period. If we’re running on 400 outlets, we’re expecting outlet numbers to rotate on, let’s say, roughly a four year basis. Therefore, I think it’s reasonable to be thinking somewhere in the order of 80 to 100 outlets are in planning at every given point in time. That may vary in terms of the amount of strategic land that we have coming through.

As you know, over the last few years we’ve increased the size of our strategic land portfolio. Therefore, we will probably have a slightly higher weighting of numbers in the planning system at this point in time in terms of outlets. That is part of the issue that’s playing out as we touched on towards the end of 2026, that there is just a lot of stuff coming through planning, not just for Barratt Redrow, but for the industry generally. There is a lot of stuff coming through planning. In terms of cladding, Mike’s talked about the way we’re progressing through the portfolio and our sense is that a lot of this will play out in terms of getting onto sites, getting work undertaken, and cash flows over the next two or three years. I think that’s the way I would tend to look at it from a cash perspective.

Mike, CFO, Barratt Redrow PLC: Yes, just picking up on outlet openings. I think we’re expecting something in the region of 130 to open during the course of FY2026.

Conference Call Moderator: Thank you. Thank you. Our next question now comes from Chris Millington from Deutsche Numis. Please go ahead.

Mike, CFO, Barratt Redrow PLC: Thanks very much.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Morning everyone.

Mike, CFO, Barratt Redrow PLC: First one I’d just like to ask is just following up on the provision point and just kind of where we are now with regard to provisions for concrete frames. Would all those provisions relate to the one party ACOM, which obviously got.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Notified on that court case, and therefore you’re pursuing recovery.

Mike, CFO, Barratt Redrow PLC: I’d just like to know, kind of, you know, how much potential you can recover there. The next one’s just about admin costs and the sort of inflationary pressures you’re seeing there. I’d love to hear a little bit more about London, which you obviously pulled out in the statement has been a little bit weaker than the other markets.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Chris, hi, good morning. If Mike picks up in terms of concrete frames, EECOM and such like and also in terms of the admin costs, I’ll just start off in terms of London. I think just by way of overview, Chris, our London business, if you went back four or five years ago, we were up at around 2,000 completions in London. Our London business is very substantially smaller and we obviously give the completion numbers on a half year and a full year basis. The business is substantially smaller than it was previously. That’s kind of the first point. The second point is that London has got challenges around affordability and we talked about this previously, that is playing out in terms of substantially reduced first time buyer numbers within the London business.

That has been the case since the final quarter of 2022 when we saw the sort of short term change in interest rates. That does not look to be a particularly improving position in terms of that affordability equation in London. We recognize, as I touched on earlier, that we’ve got to continue to try to put offers in front of the consumer that make that more attractive. Deposit matching, we’ve looked a little bit and we launched a product last year of rent before you buy, as I mentioned, we’re looking at is it possible to launch our own shared equity product. All of these things we are looking at and then I think the second part of it is that the private rental market, build to rent, private rental, while that continues to be a reasonable market in the regional marketplace.

Again over the last couple of years in London that has been a much more challenging market in terms of securing deals and securing deals at sensible prices. We flagged this time, which I think was just unusual in that we had quite a bit of difficulty closing down international sales. Nothing specific spread over a large number of buyers but it was quite a difficult close. We do expect that the majority of those will come through in the first quarter of FY2026.

Mike, CFO, Barratt Redrow PLC: Chris, let me pick up the other two parts of the question. On concrete frame, we’re making good progress through the rest of the portfolio there and as I said earlier in terms of what we previously provided, we’re confident in those costs. I think the nature of the concrete framework is that it does take a little bit of time to work through the actual remediation, but in terms of the cost and the scope of work that we’re doing, we’re confident in the numbers that we have. In terms of AECOM, you’ll remember that last year we announced there were a couple of developments in London that had been designed by a different design engineer where we had work to do. Actually, it’s in relation to that engineering firm that we’ve been investigating the Redrow portfolio.

Overall, I think we are comfortable with the position that we currently are in. In terms of overhead inflation, like you say, there is some upward pressure on costs. We’ve had the national insurance increase come through, we’ll annualize that in FY2026 and obviously we’ve got the usual levels of salary inflation and so on coming through. We do have the benefit of £45 million of cost synergy benefits coming through as well in FY2026. Overall, we’re not expecting the overhead number to significantly increase and obviously we’re doing everything we can to manage that as we go through the year. Thank you very much.

Conference Call Moderator: Thank you. Up next we have Alison Son from Bank of America. Please go ahead, your line is open. Thank you. Two questions from my side. Can you remind us how big is your presence in London for the overall portfolio? The second, I think you just mentioned that you are looking to a possibility of launching your own shared equity product. Any more color on that front? Thank you.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Hi, good morning. If I pick those up. First of all, in terms of how big is London? I touched on it before. The largest our London business has ever been has been around 2,000 completions per annum. We’ve gone from a position of it being in excess of 10% of our overall completion volumes to being more in a range of 5% to 7%. Substantial reductions in terms of the London business over a period of time. As I said, clearly London in particular because of affordability has been a more challenging market. We made a decision going back probably now six or seven years ago that we would develop primarily in zone three to six in some ways trying to address that more affordable product in the marketplace. Nonetheless, for a lot of first time buyers it’s still a challenging backdrop in terms of shared equity.

We’ve seen shared equity products launch in the market. One of our peers launched a shared equity product going back two or three months ago. We’re keen if we do it to try and do something where it’s not on our balance sheet. We’re working in conjunction with third parties which I think is more likely to be the delivery mechanism. I think it just comes back to that broad category of self help. We’ve been clear that we do think that there could be support, particularly in markets where affordability is a greater challenge, that there could be a government program of support beyond the mortgage indemnity guarantee. The reality is we’ve also got to ensure that we are putting forward everything we can to attract consumers into the market.

Therefore shared equity for first time buyers, rent before you buy, which is something that we trialed last year, deposit match, and then for checking time, movers pushing hard on programs like part exchange has all got to be part of the consumer offer.

Conference Call Moderator: Thank you. We now move on to our next question, which comes from Marcus Cole from UBS. Please go ahead. Your line is open.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Thank you.

Mike, CFO, Barratt Redrow PLC: Good morning all. I’ve got two questions as well. The first one is just on how.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Should we think about the cash flow?

Mike, CFO, Barratt Redrow PLC: Moving parts in FY26? The second one is where do you expect total provisions to close at the end of FY25? Thank you. Hi Marcus. Let me pick both of those up. In terms of cash flows, I think we’ve, you know, we talked about our land spend this year being something in the order of £850 million, £860 million. I’d expect to see that step up next year to probably about £1 billion or a touch over £1 billion. In terms of legacy property spend, which is obviously one of the other big moving parts, this year we’ll have spent probably around £130 million on building safety and we’d expect to spend probably another £100 million on building safety as we come through the year.

Next year we will be investing money in the ground in terms of infrastructure and WIP as we work towards those outlet openings into FY27. On a net basis we’d expect something like closing cash of £300 million to £400 million as we come through to the end of next year. In terms of the provisions, Lyft, I think we’ll give you the number slightly later. The key moving parts on that are, as I say, that we’ve spent £130 million during the course of this year and you’ll see that we’re increasing provisions by £229 million in relation to the additional costs that we’ve announced this morning. Okay, thank you very much.

Conference Call Moderator: Thank you. From J.P. Morgan, we now have Saeed Bicarba with our next question. Please go ahead.

Mike, CFO, Barratt Redrow PLC: Morning. Thanks for taking my questions. Just two on my side. One will be on incentives. Can you just remind us where we are now and what would you need to see in the market to reduce this from current levels? Secondly, on landfill taxes, there’s been some news flow on this recently. Any view that you have or preliminary impacts that could mean for the business. Thank you.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Yes, fine. I think if I’ll pick up both of those. I think in terms of incentives, we’ve said before that we’re running at a level but probably a little above 6% in terms of incentives levels. There are restrictions on incentive levels in terms of the Council of Mortgage Lender guidelines. Therefore, generally 5% is the restriction in terms of cash incentives, 1 to 2% on non-cash incentives. Beyond 6% on any particular development, then there would tend to need to be a movement in headline prices and a sort of reset either up or down in relation to headline prices. I would say that incentive backdrop has been fairly stable, but against the first quarter was a little better than second quarter in terms of the calendar year, but reasonably stable in terms of incentives.

In terms of landfill taxes, I know that there’s been a lot of publicity about that over the last couple of days. We’ve said before, and I’m sure everyone understands that sending things to landfill is not seen to be a good thing. We’ve published previously that around 3% of all of our waste will go to landfill. I think the government are looking to try to effectively penalize people for sending things to landfill. There’s a consultation out presently and I think the implementation plan is as we move towards 2030 and beyond. We’ll obviously respond to that consultation. The overall point being that we do understand that sending less to landfill is seen to be a positive thing and therefore in certain cases, industries need to change practices and we’ll just keep that position under review.

Mike, CFO, Barratt Redrow PLC: Right, thank you.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Thank you.

Conference Call Moderator: As a brief reminder, that is Star one for your questions today. We now take a question from Charlie Kemmel from Stifel. Please go ahead, your line is open.

Mike, CFO, Barratt Redrow PLC: Good morning.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Questions left from me, if I can. The first one’s on mortgages, some.

Mike, CFO, Barratt Redrow PLC: The rules around availability are changing. Just wondering if you’ve seen any effects of that yet or whether that’s too early. Land availability, I just wondered what is the situation for buying land at the moment, availability and.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: How is pricing evolving on that land? Thank you, Charlie.

Mike, CFO, Barratt Redrow PLC: Hi, good morning.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Yes, if I put those up, I mean, I would say that mortgages and the sort of different rules around mortgages that we have seen are gradual change or gradual relaxing to rules. I don’t think any of these rule changes individually are significant, but the reality is that collectively they are freeing up mortgage availability. Whether it be on higher loan to value levels or freeing up another lending criteria, clearly we see it as being positive. Now, we obviously recognize there’s got to be a balance. We don’t want mortgage lending, nobody wants mortgage lending to get to a position where there aren’t controls in place. I think it’s got to be a balance. All of those changes are positive and will clearly help the overall market backdrop in the same way as the government program.

In terms of the mortgage indemnity program, clearly that helps, but I think you can see from the numbers that that’s not a game changer. That is just a very mild positive in terms of the way it contributes to the marketplace, primarily because of pricing and affordability. To have a game changer, you’ve got to have something that’s very different from a pricing and an affordability perspective. In terms of land availability, I would just describe it as good. As you know, you’ve seen our approval numbers. We published them again this morning. We’ve got strong approval numbers in FY2025 and in FY2024. We weren’t in the market for the whole year. The reality is, across what is effectively an 18-month period, we’re very, very pleased with our land intake.

I think that the only thing that I would call out in our land intake has been that we are more focused on larger sites, so particularly sites where we can triple brand and therefore bringing in sites that are 751,000 units. We’ve undertaken a number of those transactions during the year. Firstly, and then secondly, as we previously announced, we did a deal in Scotland to buy a block of land in Scotland which we think positions our business in Scotland very well, but that has obviously enhanced numbers during the year. Thank you very much.

Conference Call Moderator: Thank you. As there are currently no further questions in the queue, I would now like to hand the call back to you, Mr. Thomas, for any additional or closing remarks.

David Thomas, Group Chief Executive Officer, Barratt Redrow PLC: Yes, thank you very much. Thank you everyone for dialing in. We will be back with full year results on the 17th of September. We’re obviously around during the course of today if anyone’s got any follow up questions. Thank you very much.

Conference Call Moderator: Thank you for joining today’s call. Ladies and gentlemen, you may now disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.