Barratt Redrow shares tumble because it cuts dividend with new properties market caught within the doldrums

Barratt Redrow shares plummeted after cutting its dividend following a ‘subdued’ market in the six months to 28 December. 

Britain’s biggest housebuilder reported adjusted operating profit was broadly flat year-on-year at £210.2million, while revenue grew 10.5 per cent to £2.63billion. 

Adjusted pre-tax profits fell 13.6 per cent to £199.9million.  

Having previously halved its dividend, Barratt reduced its payout from 5.5p to 5p. 

Shares in Barratt Redrow fell 8.05 per cent or 31.30p to 357.70p on Wednesday, having fallen around 18 per cent in the past year. 

The housebuilder said it had delivered 7,444 home completions in the period and expects a total of between 17,200 and 17,800 across the year, in line with previous forecasts and up 4.7 per cent on a year ago. 

But this was slower than the 7.9 per cent growth reported in November.

Dwindling profit: Barratt Redrow saw its half-year profit fall amid a ‘subdued market’

Barratt expects profits to be in line with estimates of between £558million and £618million, but it will be partly dependent on sales activity throughout the crucial spring selling season. 

The London-listed firm said: ‘Whilst subdued, the trading backdrop was stable during the period with a less volatile mortgage lending environment supporting customer demand.

‘However, consumer confidence remained low, economic and political uncertainty was high, and affordability challenges remained an issue for many customers, in particular first-time buyers.’ 

It also blamed the timing of the Budget for creating ‘an extended period of significant uncertainty for homebuyers, but we benefited as customers decided to complete ahead of Christmas once Budget uncertainty was removed.’

The group said its ‘strategic land teams’ submitted 56 planning applications in the period, encompassing 16,985 plots.

‘However, consumer confidence remained low, economic and political uncertainty was high, and affordability challenges remained an issue for many customers, in particular first-time buyers. 

It added: ‘At 28 December 2025 we had a total of 103 planning applications, equating to more than 27,500 plots, submitted and awaiting local planning authority consideration across our strategic land bank.’

Underlying net private reservation rates for the period were 0.55 per site per week, but current trading from 29 December to 1 February showed the rate edged up to 0.59, closer to the 0.60 seen a year earlier.

Cost synergies from the Redrow deal have also progressed, with delivery said to be in line with the full £100million goal, the group said. 

Richard Hunter, head of markets at Interactive Investor, said: ‘The currently unstable political environment continues to weigh on consumer confidence, while affordability concerns remain in sharp focus particularly for first-time buyers. 

He added: ‘A challenging growth outlook amid the economic backdrop will likely lead to limited growth in the year to come, and the dividend cut and contrast to a strong update from Bellway yesterday have weighed strongly on the share price at the open.’