Barratt Redrow, Britain’s biggest housebuilder, has revealed a drop in forward-looking sales, dampening hopes that a recent downturn in the sector has eased.
The company said forward home sales are 10% down on the same point last year, standing at 10,245.
Homebuilders have struggled in recent years after skyrocketing inflation led to higher interest rates and mortgage costs, hammering sales across the sector.
While inflation returned to normal levels last year and interest rates have started to fall, concerns over the UK’s economy have lingered, undermining confidence of would-be buyers.
Donald Trump’s trade tariffs have also sent shockwaves through the global economy in recent weeks, sparking a global trade war after months of speculation over what form they might take.
Activity across the UK housing market already took a hit last month, following a months-long rush to buy houses before stamp duty, a tax on buying homes, started applying to more buyers in April.
Barratt Redrow said economic uncertainty has “increased”, without referring to anything specific.
Nonetheless, David Thomas, the company’s chief executive, said the firm is “well placed” to complete between 16,800 and 17,200 homes this year, in line with previous forecasts.
Firms in the sector will hope for a boost in the coming years from Labour’s target of building 1.5 million homes by 2029, which has so far included reforming planning rules to make it easier to build homes.
The company said: “Whilst macroeconomic uncertainty has increased, we remain encouraged by the Government’s ongoing commitment to increasing housebuilding activity and proposed supply-side support.”
Mr Thomas added: “The fundamentals for our industry remain strong, with a clear need for new homes across all tenures and a national focus on accelerating delivery.”
Barratt completed its £2.5 billion takeover of Redrow in October after approval from the competition watchdog, forming the UK’s largest housebuilder.
When the deal went through, the company said it would shut nine offices and axe around 800 workers to save costs.
Mr Thomas said on Wednesday the integration of the two firms is “nearing completion”.
