The government’s flagship housebuilding drive has suffered another setback after Britain’s largest housebuilder cut its homes target, blaming continued delays in the planning system.
Barratt Redrow now expects to complete between 17,500 and 17,900 homes in the year to June 2027. That is down from its previous forecast of between 17,700 and 18,200.
The downgrade will add to concerns over the pace of new housing delivery in England.
The government has put planning reform at the heart of its drive to increase development. Its overhaul included mandatory housing targets and additional planning officers as part of the push towards 1.5 million homes.
But Barratt Redrow said “continued planning delays” were affecting the number of sales outlets it expects to open.
The developer now anticipates operating an average of around 405 sales outlets during its current financial year. It had previously expected about 415.
The warning comes just days after housing secretary Angela Rayner admitted there is now only a “slim chance” of delivering 1.5 million homes in England by the next election.
Rayner said the 1.5 million-home target remained in place. But she acknowledged that rising construction costs and wider economic pressures, including the Iran war, had made it increasingly difficult to achieve.
“It’s a slim chance, but I’m definitely not giving it up,” Rayner told the BBC.
The latest downgrade from the country’s biggest housebuilder underlines the scale of the challenge facing ministers as they attempt to accelerate housing delivery.
The reduction is also significant for estate agents operating in areas heavily dependent on new-build supply. Fewer outlets and slower site openings potentially mean fewer new homes reaching the market.
It comes despite an improvement in Barratt Redrow’s recent sales performance.
Its net private weekly reservation rate reached 0.62 between 29 June and 6 September. That compares with 0.55 during the equivalent period of its previous financial year.
Forward sales stood at 11,200 homes worth £3.34bn at 6 September, compared with 10,593 homes worth £3.22bn a year earlier.
The revised forecast followed the publication of Barratt Redrow’s full-year results.
The group completed 17,667 homes in the year to 28 June, up 5% from 16,826 a year earlier.
Revenue increased 6.6% to £6.06bn, while statutory pre-tax profit rose to £363.5m.
Adjusted pre-tax profit, however, fell 7.1% to £572.8m.
Analyst Anthony Codling, managing director at RBC Capital Markets, said attention would now turn to the developer’s reduced outlook.
He said: “Barratt delivered FY2026 in line with expectations following the detailed July trading update. However, the real focus today will be the outlook for FY2027, and today the Group is cutting guidance: completions trimmed to 17,500–17,900 (from 17,700–18,200) and outlets cut again to c.405 (from c.415), confirming that planning delays continue to frustrate growth ambitions.
“Current trading is encouraging with the net private reservation rate at 0.62 (FY26: 0.55), but we expect the market’s attention will be on the narrower FY27 volume corridor and what it implies for the medium-term trajectory.
“We expect a mixed reaction today: the solid FY26 delivery and encouraging current trading is offset by the downgraded FY27 outlook.”
