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Shares in Barratt Redrow fell more than 10 per cent on Tuesday morning after the UK housebuilder said it had sold fewer homes than forecast in the year to the end of June.
The company, one of Britain’s biggest housebuilders, said it had sold 16,565 homes in the year, down from its April guidance of between 16,800 and 17,200.
The company said the shortfall was “mainly due to the impact of fewer international and investor completions than expected” in its London business. Demand had also been affected by consumer caution and mortgage rates not falling as quickly as anticipated, it added.
On a call with analysts, chief executive David Thomas pointed to affordability problems in London that had caused “substantially reduced first time buyer numbers”.
Thomas said the company was looking at ways to attract buyers into the market, such as with rent-before-you-buy programmes, deposit-matching and a new shared equity product.
Despite the challenges, Barratt still intends to build 22,000 homes a year in the medium term and expects to sell between 17,200 and 17,800 homes in its 2026 fiscal year.
