Barratt Redrow Launches £386 Million Share Buyback Programme

Barratt Redrow announced a plan to return £400 million to shareholders by July 2, 2027, consisting of a £386 million share buyback programme and £14 million in dividends. The company appointed Barclays Bank PLC to manage an initial tranche of the buyback valued up to £190 million, which will conclude by December 31, 2026. All repurchased shares will be cancelled to reduce the company's share capital.

The move follows pressure from Phoenix Asset Management Partners, which holds a 5% stake and had urged the housebuilder to execute annual buybacks of up to £1 billion due to undervalued shares. Outgoing CEO David Thomas stated the programme is the most effective way to create long-term value. Gary Channon, founder of Phoenix Asset Management Partners, described the decision as a step forward for shareholders.

Despite the capital return, the company issued warnings regarding potential build cost inflation of 3% to 4% for 2026-27, citing global energy volatility and the Iran war. For the year ending June 28, Barratt Redrow expects underlying pre-tax profits of £559.5 million and projections of 17,700 to 18,200 home completions.