Russ Mould, investment director at AJ Bell, said: “The conflict in Iran and the implications it has for inflation and interest rates have shaken the foundations of the housebuilding sector, so there will be a modicum of relief after Barratt Redrow’s third-quarter update.
“The company is sticking with guidance, albeit for a financial year which ends in a matter of weeks.
“Demand is holding up for now, with sales rates ticking higher and the order book in reasonable shape, but the company’s decision to materially scale back land purchases feels instructive as it reacts to limited forward visibility.
“There is a sober acknowledgement that inflationary pressures are likely to be felt more acutely through the course of 2026.
“While it may owe much to the timing of remediation payments, investors will be pleased to see a higher-than-expected cash buffer expected at Barratt by the year end.
“A strong balance sheet could help the company navigate what could be a tricky period.
“What was expected to be a relatively smooth road ahead, with easing rates and inflation helping Barratt and the rest of the industry to rebuild profitability, now looks littered with potholes.”
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