Barratt Redrow, a major UK housebuilding company listed on the FTSE 250, has lowered its housing delivery targets amid a difficult market environment. The firm cited rising construction costs and weakening demand linked to geopolitical tensions, including the ongoing conflict involving Iran, as key challenges affecting its outlook.

For the year ending in June, Barratt Redrow reported a 5% increase in homes built, reaching 17,667 units. The company’s revenue rose 6.6% to £6 billion, while pre-tax profit climbed by approximately one-third to £363.5 million. Despite the cautious guidance, the group emphasized its strong position to navigate the current market pressures by reducing capital expenditures and implementing cost-saving measures.

Shares of Barratt Redrow responded positively to the update, rising over 6% to 294 pence in early trading following the announcement.

The company also disclosed a forthcoming leadership change. Chief executive David Thomas, who has led the firm for 11 years, will step down later this month and be succeeded by Dean Banks, formerly the head of Australian builder Ventia. Thomas reflected on his tenure by describing it as “an enormous privilege.”

The adjustment in targets and strategic focus highlight the broader challenges facing UK homebuilders amid inflationary cost pressures and subdued market demand. Barratt Redrow’s preparations aim to sustain its performance amid anticipated headwinds in the housing sector.