# Barratt profits drop amid budget uncertainty and subdued buyer demand

By Russ Mould — 2026-02-11

Russ Mould, investment director at AJ Bell, said: “Barratt Redrow’s first-half results have created some uncertainty about the outlook and helped shake the foundations of the share price.

“Barratt says the outlook remains reliant on the spring selling season.

“While it still expects to deliver completions and profit in line with previous guidance, there’s enough caution and caveating in the statement to create some doubts.

“Margins are under pressure thanks to sales incentives and build cost inflation and reservation rates aren’t anything to write home about either.

“The housebuilding sector was stitched up by the timing of last year’s Budget which created uncertainty during the key autumn selling period.

“That’s reflected in Barratt’s first-half numbers themselves which show a material drop in adjusted profit.

“It’s clear that any turnaround in the fortunes of both Barratt and the wider industry is unlikely to be rapid.

“Management and shareholders will hope the stable if subdued backdrop gives way to something more positive in 2026.

“The danger is the recent political instability pushes up borrowing costs even if the Bank of England does its bit by cutting interest rates.

“On a brighter note, Barratt has a strong balance sheet to help see it through any future turbulence and the integration of the old Redrow business seems to have gone smoothly.”

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