One of Britain’s largest housebuilders, Barratt Redrow, is scaling back its land acquisition plans, citing increased uncertainty linked to global events, in a move that could add further pressure to the government’s housing targets.
The company said it now expects to approve between 7,000 and 9,000 plots for purchase in the current financial year, down from earlier guidance of 10,000 to 12,000. It added that recent geopolitical developments had made it more cautious about committing to new sites.
Barratt Redrow said the more uncertain outlook, including potential impacts on mortgage rates and construction costs, had led it to adopt a more selective approach to land buying. As a result, forecast spending on land has been reduced to between £700m and £800m, compared with previous expectations of £800m to £900m.
The announcement follows a similar move by Berkeley Group earlier this month, with the developer halting new land purchases in response to market volatility.
The shift among major housebuilders raises fresh questions over the viability of the government’s target to build 1.5 million homes over five years. Latest figures suggest output remains below the pace required to meet that ambition.
Data from the Centre for Policy Studies indicates that in Labour’s first year in office, 140,860 homes were completed in England, while fewer than 116,000 were started – short of the approximate 300,000 annual target needed.
Although ministers have introduced planning reforms and committed £39bn to a long-term affordable housing programme, the sector continues to face headwinds including elevated borrowing costs, rising build costs and planning constraints.
Despite the more cautious stance on land, Barratt Redrow said it does not expect current global tensions to affect its performance in the short term. The company said around 95% of its sales target for the year is already secured and reiterated its guidance to deliver between 17,200 and 17,800 homes, alongside pre-tax profits of £568m.