Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
“Barratt Redrow’s full-year results revealed the housebuilder remains on solid ground, despite a challenging market. Revenue was up 6.6% to £6.1bn, driven by growth in new home completions and a smaller contribution from higher average selling prices as the mix shifted towards larger homes in more expensive regions. However, build cost inflation accelerated to 2% over the year, and the use of incentives to convince buyers to sign on the dotted line for a new home also rose, weighing on margins. That saw adjusted pre-tax profits fall by 7.1% to £0.6bn, in line with market expectations.
Looking ahead, the near-term picture remains challenging with continued planning delays, build cost inflation set to rise towards 4%, and UK house prices trending lower. Due to the softening market, buyer incentives are set to remain elevated, and the 2027 completions outlook has been wound back a touch, with the midpoint of guidance now expected to be broadly in line with last year’s level. Barratt has a strong balance sheet though, which should help the group weather the current storm. While we expect the housing market to remain subdued this year, Barratt Redrow’s valuation looks relatively undemanding on a long-term view. Management’s taking advantage of this share price weakness with £0.4bn of shareholder returns planned this year, with the majority coming in the form of share buybacks.”
Notes to Editors
HL is the UK’s largest investment and savings platform for private investors and more than 2.2 million clients trust us with £205 billion (as of June 2026).
We help Britain build wealth, with confidence. Our promise is simple: to provide the best products, the best support and the best value. Founded in 1981, we’ve been helping people save and invest for a better financial future for more than four decades. We offer a lifelong, secure home for our clients’ investments and savings, combining great value with outstanding service, to make managing your money easier at every stage of life.
Our award-winning Savings & Resilience Barometer measures the nation’s financial resilience across our 5 to Thrive pillars, equipping people with the tools they need to strengthen their financial futures.
Saving and investing is for the whole family, and to support intergenerational wealth transfer, we’ve removed all platform charges and share dealing fees on our Junior ISA, meaning kids go free, and we’ve reduced the platform fee on our Lifetime ISA to 0.25%, supporting those savings for their first home or for retirement.
Regular saving into all funds, FTSE 350 shares, and selected investment trusts and ETFs is free.
Our clients also have access to the most comprehensive pension and retirement solution, including SIPP accounts, SIPP Income Drawdown, UFPLS payments and annuities, as well as over 14,000 investment options across funds, shares, ETFs, investment trusts, bonds and gilts.
HL Active Savings is the UK's largest retail cash savings platform that lets savers easily make more of their money and the HL Cash ISA allows savers to manage their Cash ISA portfolio across multiple banks, all within one account.