Government needs to support first-time homebuyers, asserts largest UK house builder
The UK housing market has faced a challenging year, with higher build costs, a slower-than-expected recovery in demand, and ongoing planning system blockages contributing to the difficulties. Amidst these challenges, Barratt Redrow, a prominent FTSE 100 group, has reported strong financial results for the 12 months ending June.
Barratt Redrow reported a total of 16,565 home completions, a slight decrease from the prior year's 17,972 completions. However, the company's underlying pre-tax profit increased by 26.9% to £488.3 million, and revenues rose by 33.8% to £5.58 billion compared to the same period last year.
David Thomas, the boss of Barratt Redrow, emphasised the need for Government policy to focus on reforming the planning system, removing barriers to investment, and supporting first-time buyers to build the homes the country needs. He also highlighted the importance of stable market conditions and predictable tax policies for homebuilding, to safeguard against risks linked to economic and political uncertainties.
Smaller rival MJ Gleeson echoed similar sentiments, stating that more needs to be done on planning rules to ensure the Government can hit its ambitious new home targets. The Government's supply side reforms have not addressed the challenges of affordability, uncertainty in the macroeconomic environment, and weak consumer confidence in the housing market.
The housing crisis in the UK may accelerate UK inequality if the Government fails to boost support for first-time home buyers. The FTSE 100 group welcomed Labour's Affordable Homes Programme but emphasised the need for demand-side support for rapid and sustained private development growth.
Barratt Redrow has set a target of building 22,000 homes per year over the medium term. Shares in the company increased by 1.3 per cent in early trading to 371p.
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As the housing market continues to face challenges, it is crucial for the Government to address the issues of affordability, planning, and consumer confidence to ensure a sustainable and equitable housing market for all.
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