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Barratt Redrow blamed rates of interest and a scarcity of worldwide consumers because it reported a decrease than anticipated variety of home gross sales for its final monetary yr, sending shares within the UK group sliding by greater than 10 per cent on Tuesday morning.
The corporate, one in every of Britain’s greatest housebuilders, stated it had offered 16,565 houses within the 12 months to the top of June, falling in need of its April steerage of between 16,800 and 17,200.
The corporate stated the shortfall was “primarily as a result of influence of fewer worldwide and investor completions than anticipated” in its London enterprise. Demand had additionally been affected by shopper warning and mortgage charges not falling as rapidly as anticipated, it added.
On a name with analysts, chief government David Thomas pointed to affordability issues in London that had precipitated “considerably decreased first-time purchaser numbers”.
Thomas stated the corporate was methods to draw consumers to the market, comparable to with rent-before-you-buy programmes, deposit-matching and a brand new shared fairness product.
Regardless of the challenges, Barratt intends to construct 22,000 houses a yr within the medium time period and expects to promote between 17,200 and 17,800 houses in its 2026 fiscal yr.
Shares fell greater than 10 per cent in early buying and selling however recovered barely to commerce 7.6 per cent decrease later within the morning.
