Barratt Redrow Reaffirms FY26 Outlook as Q3 Reservations Climb

Barratt Redrow plc has reported a strengthening in demand for the third quarter, with net private reservation rates increasing to 0.64 per outlet per week, up from 0.62 in the prior year. When including private rental and multi-unit sales, the rate rose 6.3% to 0.67. The company is navigating a period of interest rate and cost uncertainty, leading to a more selective approach to land acquisition. Despite these headwinds, the group has successfully expanded its footprint, operating an average of 408 sales outlets and opening 32 new sites, including new synergy outlets combining Barratt and David Wilson Homes. Financial performance remains robust, with total forward sales reaching £3.54 billion across 11,395 homes, representing an 11.2% increase in volume and a 12.8% increase in value year-over-year. The group is currently 94% forward sold for the 2026 fiscal year, with year-to-date completions totaling 10,718. Looking ahead, Barratt reaffirmed its full-year completion target of 17,200 to 17,800 homes and expects adjusted profit before tax to align with market consensus. Year-end net cash is now projected between £550 million and £650 million, an increase of approximately £150 million over previous estimates due to reduced land spending and remediation payment timing. Strategically, the company has lowered its full-year land approval guidance to 7,000-9,000 plots, down from the previous range of 10,000-12,000. Additionally, the group continues its £100 million share buyback program, with £33.3 million already deployed during the period.