Barratt Developments supports housing reforms amid construction cuts

Barratt Developments has welcomed government initiatives aimed at addressing the UK's significant housing shortage, despite a notable reduction in its construction output. In the year ending June, the company completed just over 14,000 homes, a decrease of nearly 20% from the previous year's total of 17,206. This decline is attributed to various factors, including affordability issues and a lack of available land for development. As a result, Barratt anticipates building up to 13,500 homes in the upcoming year. The company's annual profits have also seen a dramatic decline, dropping by three-quarters to £170.5 million. This financial downturn reflects broader challenges within the housing market, where demand remains subdued. Analysts emphasize the necessity for planning reforms to facilitate economic growth and increase the supply of new homes, highlighting the importance of securing more development sites for builders. The competition watchdog is currently reviewing Barratt's proposed acquisition of Redrow, which adds another layer of complexity to the company's operations. The ongoing scrutiny may impact Barratt's strategic decisions moving forward, particularly in light of the current market conditions. Overall, while Barratt Developments is optimistic about potential reforms, the immediate future appears challenging due to reduced construction numbers and profit margins. The company’s performance is indicative of the broader struggles faced by the UK housing sector, necessitating urgent reforms to stimulate growth and address the chronic undersupply of homes.