Barratt Redrow has announced a £400million share buyback scheme after one of its biggest investors threatened to “escalate” action if it was not introduced.
The Group unveiled the plan as it released its full year result for the 12 months to 28 June 2026, where it reported an increase in new home completions and that its profit would be in line with expectations.
During the period, Barratt Redrow recorded 17,667 completions, an increase of 5% from the previous year. The Group also announced a company-compiled consensus of £559.5million pre-tax profit, with a high of £576million and a low of £537million.
David Thomas, chief executive of Barratt Redrow, commented: “Barratt Redrow has delivered a solid performance in a challenging market, completing 17,667 homes and generating adjusted profit before tax in line with market expectations. This reflects the quality of our homes, the strength of our three complementary brands and the operational excellence of our teams across the business.”
Thomas says that the housebuilding sector continues to navigate macroeconomic and geopolitical uncertainty, alongside industry headwinds and subdued customer demand, which have weighed on market sentiment.
Phoenix Asset Management Partners, Barratt Redrow’s third-largest investor, had urged the housebuilder to begin an “aggressive” buyback programme, arguing that the shares were undervalued and warning of the possibility of a takeover if no action was taken. Phoenix also set out a case for buying back up to £1billion shares annually.
Barratt Redrow says that the expanded share buyback programme is currently the most effective way to create long-term shareholder value, and that it is set to return £400million to shareholders in FY27, primarily through share buybacks.
Looking ahead, Barratt Redrow expects market pressures to continue into FY27. The Group believes that the government’s planning reforms should, in time, boost housing delivery, but warns that planning alone will not be enough. The housebuilder is calling on the government to take action to support demand, particularly for first-time buyers. It says that, by removing barriers to homeownership and addressing the increasing regulatory and tax burdens that are constraining viability across many parts of the country, it can help unlock higher levels of housing delivery, including affordable housing, to tackle the housing crisis, create jobs and drive economic growth nationwide.
In FY27, Barratt Redrow expects to complete between 17,700 and 18,200, operating from an average of around 415 sales outlets across the year.
