Barratt Redrow builds on merger for wider choice

BARRATT Redrow's revenue subsided slightly last year as affordability issues continued to weigh on demand for its newly built homes.

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Buyer activity is expected to pick back up in the new financial year but Barratt has cautioned that the upcoming UK Budget could bring additional risk to growth targets.

After accounting for the merging of the two businesses (Barratt and Redrow), the combined group's revenue fell by 2% to £5.6bn. That's in large part due to softer demand across London - a trend that's playing out across the sector as affordability issues persist. It's not a major issue for now, but it means the medium-term target to deliver up to 22,000 homes annually could take a while to reach.