Enlarged housebuilder Barratt Redrow has confirmed it plans to close up to nine of its regional offices as part of a major cost saving move.
The newly merged business - the country's largest housing developer - said it is hoping to find £90m of savings through changes to its procurement, consolidation of its central support functions and by slimming down its divisional office structure. A collective consultation with staff is under way.
News of the restructuring came as bosses said they were beginning to see a more stable market thanks to better mortgage affordability and availability. They pointed to confidence in the new Labour Government's plans to reform the planning system and address funding challenges in the affordable housing sector - saying that while the plans would take time to enact, they would likely boost delivery of new homes across the country.
In an update to investors on the London Stock Exchange, the firm said: "Whilst customer demand continues to be sensitive to the wider economy, we are beginning to see more stable market conditions with increased mortgage availability and affordability. It will take some time for customer confidence to fully recover from the macroeconomic headwinds faced over the past two years, but we are encouraged by the solid trading we have experienced over recent weeks."
Competition and Markets Authority clearance for Barratt's £2.5bn takeover of smaller Welsh rival Redrow came earlier this month. In its latest update, the merged business said its private reservation rate from August 22 to October 13 was 0.67, representing a 36.7% increase on the pro-forma equivalent in financial year 2024 of 0.49.
David Thomas, chief executive of Barratt Redrow, said: "Whilst customer demand continues to be sensitive to the wider economy, we are beginning to see more stable market conditions with increased mortgage availability and affordability. It will take some time for customer confidence to fully recover from the macroeconomic headwinds faced over the past two years, but we are encouraged by the solid trading we have experienced over recent weeks.
"This is an exciting new chapter for our business. Barratt Redrow is uniquely well-positioned to meet the need for new homes of all tenures across the country. We have superior scale, with a differentiated multi brand offering that can be deployed across our strong combined land portfolio.
"We begin this journey with a strong balance sheet, a solid forward sales position and the ability to add significant value through cost and revenue synergies. We look forward with confidence to delivering a smooth and efficient integration process, and to capturing the enhanced growth opportunities ahead of us."
