(Reuters) -UK homebuilder Barratt Redrow’s forward sales – a gauge of near-term demand – were 10.1% lower at the end of March from a year earlier, it said on Wednesday, but reiterated its target to build between 16,800 and 17,200 homes this year.
Mounting concerns about the outlook for the UK and the global economy in the face of a tariff war have further undermined the confidence of potential homebuyers already struggling with elevated borrowing costs, inflation, and the end of tax breaks on property purchases this month.
The FTSE-100 company reported forward sales of 10,245 homes as of March 30, down from 11,402 homes a year ago.
It said its private home order book stood at 5,503 homes as at March 30, 3.5% lower than a year ago, although its value was 3.3% higher due to inflation and a change in the sales mix.
“Whilst macroeconomic uncertainty has increased, we remain encouraged by the government’s ongoing commitment to increasing housebuilding activity and proposed supply-side support,” it said in a 13-week trading update.
Britain’s government has pledged 2 billion pounds ($2.65 billion) to build up to 18,000 social and affordable homes in England and has deferred the introduction of a 3.4 bln pound building safety levy to late 2026.
Barratt Redrow, which was formed after the merger of the two eponymous companies last year, still expects costs to be broadly flat this year but said the inflation outlook for next year was less certain.
($1 = 0.7539 pounds)
(Reporting by Shashwat Awasthi and Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich and Barbara Lewis)
