Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Barratt Redrow Urges Tax Cuts and Regulatory Reform to Boost Housing Delivery

Barratt Redrow has renewed its call for the next Prime Minister to cut taxes and reduce regulation to support the UK housing market. The housebuilder made this appeal as it announced a £400 million share buyback programme aimed at increasing shareholder returns.

The FTSE 100 group stated that ministers must address “the increasing regulatory and tax burdens that are constraining viability” in order to “unlock higher levels of housing delivery, including affordable housing.” Barratt Redrow argued that urgent reforms to taxation and planning rules are needed to “tackle the housing crisis, create jobs and drive economic growth.”

This latest intervention follows a recent joint appeal by Barratt Redrow and Rightmove for the government to abolish stamp duty for first-time buyers to stimulate housing demand. The housebuilding sector has faced renewed pressure from rising construction costs, with Barratt Redrow reporting a 3% increase in costs following the outbreak of conflict in Iran, bringing average cost inflation for the year to 2%. The company also warned that ongoing volatility in energy markets and supply chains could push building costs even higher in the coming year.

Barratt Redrow’s £400 million capital return will be distributed primarily through share buybacks, with around £386 million allocated to this method and the remainder paid as an ordinary dividend of 1p per share. The buyback programme will begin immediately and is expected to conclude by the start of July 2027.

In its annual trading update, Barratt Redrow reported the completion of 17,667 homes in the year to the end of June, including 3,774 affordable homes. Its forward order book was valued at £2.8 billion, compared with £2.9 billion a year earlier. The company ended the financial year with net cash of £772 million, above its forecast range, due to lower spending on land acquisitions and delays to building safety remediation payments.

For UK letting agents and inventory clerks, Barratt Redrow’s call for tax and regulatory reform, as well as its focus on affordable housing delivery, may signal potential changes in housing supply and market activity in the coming years.