Chancellor’s late Budget threatens to dent demand for new homes, warns Barratt Redrow boss

Britain’s biggest builder has warned that the late Budget could hit demand for homes.

David Thomas, chief executive of Barratt Redrow, has warned of ‘limited growth’ as it stuck to a target of building between 17,200 and 17,800 in the year to the end of next June. 

‘The extended period through to the Budget and related uncertainties around general taxation and that applicable to housing has introduced additional risk,’ the firm said, underlining anxiety over the Chancellor’s Budget plans – and the decision not to hold it until November 26.

The warning also cast fresh doubt over Labour’s target to build 1.5m homes in this parliament.  Barratt Redrow yesterday said it built 16,565 homes last year, down from 17,972 the previous year. 

Thomas said it ‘delivered a solid performance in a tough market’ and called its 2024 acquisition of Redrow ‘transformative’.

But Russ Mould, analyst at AJ Bell said: ‘The timing of the Budget means the autumn selling season could be plagued by people deciding to stay put until there is more clarity on taxes.’

Budget gloom: Barratt Redrow boss David Thomas (pictured), warned of ‘limited growth’ as it stuck to a target of building between 17,200 and 17,800 homes 

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