Housebuilding giant hit by London exodus as sales slump
Barratt Redrow sold 16,565 homes in the year ending June 29, falling short of a forecast of between 16,800 and 17,200 that it had set out in April.
The developer cited 'fewer international and investor completions than expected' in London, adding that 'homebuyer confidence remains fragile and mortgage rates remain high compared to recent years'.
The housebuilder stated: 'The London housing market has been particularly challenging with weak demand from both domestic and international homebuyers.'
London's housing market has slumped after the Chancellor ended stamp duty discounts in April. Mortgage rates have also stayed higher than expected, which has dented affordability. These have resulted in a wave of price reductions across the capital.
Shares in Barratt Redrow fell by as much as 13pc in early trading before recovering to around 8pc in the mid-morning. Around £778m has been wiped off its value.
Barratt Redrow said it expected to sell between 17,200 and 17,800 homes in its 2026 financial year, reflecting 'revised expectation of broadly flat average sales'. None the less, it noted that mortgage market competition and availability have improved.
The bill for repairing safety defects on high-rise homes, required to avoid another Grenfell-style cladding disaster, has also risen by around £98m to total £248m after discovering issues at buildings within its southern division and at a large London development. It said it will pursue its subcontractors to recover those costs.
However, the developer said it will deliver profit in line with market expectations, which will be shared in future trading updates.
David Thomas, chief executive, said: 'Although demand during the year has been impacted by consumer caution and mortgage rates not falling as quickly as hoped, there remains a long-term structural under-supply of housing in this country.
'We remain confident in our medium-term ambition to deliver 22,000 high-quality homes a year, and in the long-term demand for our high-quality homes.'
The news comes after findings by Molior showed sales of new-build homes in the capital plunged to their lowest level since the global financial crisis.
The decline, which was more pronounced over the past three months, was blamed on the insufficient financial incentives for property developers to build new homes and for buyers to acquire them. This has led to fewer developments and sales.
Last week, rival housebuilding giant Vistry posted a profit drop of a third to £80m for the first half of the year, after issuing a string of profit warnings in recent months. It reported 6,800 home completions for the six months ending June 30, down from 7,792 in the previous year.
Vistry cited sluggish demand from its affordable housing partners on the back of funding constraints and uncertainty ahead of the Chancellor's June Spending Review, but outlined its hopes that the Government's £39bn affordable homes strategy will boost its business.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
£15k invested in these dividend shares could yield an enormous second income!
Investing in a broad range of stocks can be a great way to target a long-term second income. History shows that holding dividend shares spanning different sectors and geographies can reduce risk and provide a stable return over time. Here are two high-yield dividend stocks that could help diversify an investor's portfolio: Dividend share Sector Dividend yield Taylor Wimpey (LSE:TW) Housebuilding 8.6% Bluefield Solar Income Fund (LSE:BSIF) Renewable energy 9% As you can see, the prospective yields on these stocks smash the broader average for FTSE 100 and FTSE 250 shares (both at 3.4%). Dividends are never guaranteed, but if broker forecasts are accurate, a £15,000 lump sum invested equally across them would produce a £1,320 passive income this year alone. Here's why I think both shares are worth considering. Taylor Wimpey Latest trading numbers from Barratt Redrow have reminded investors of the ongoing perils facing the housebuilders. On Tuesday (15 July), it said completions were a disappointing 16,565 last year, missing a targeted 16,800-17,200. This was due to 'consumer caution and mortgage rates not falling as quickly as hoped', the Footsie company noted. Conditions may remain tough as the UK economy splutters. But I'm confident Taylor Wimpey's industry-leading balance sheet means it should still at least be able to continue paying large dividends. It remains highly cash generative, and ended 2024 with more than half a billion pounds (£564.8m) in net cash. That's not to say I believe Taylor Wimpey's recent sales revival is about to run out of steam, though. Its order book — which rose to 8,153 homes as of 27 April from 7,742 a year earlier — could continue building as interest rates seemingly have further to fall. I'm certainly expecting the FTSE 100 share to perform strongly over the long term, helped by intensifying mortgage market competition and planned changes to home loan regulations. These include allowing lenders to offer more mortgages based on more than 4.5 times a homebuyer's annual income. This measure alone could help a further 36,000 first-time buyers get onto the property ladder. As the UK's population steadily grows, I'm optimistic housebuilders like this will remain excellent dividend payers. Bluefield Solar Income Fund Bluefield Solar also stands to gain from falling interest rates that reduce borrowing costs and boost asset values. But like Taylor Wimpey, renewable energy stocks like this also face other dangers over the next year. In this case, the costs to build green energy projects are rising, casting doubts over their future profitability and plans for expansion. But on balance, I think this FTSE 250 investment trust is another great dividend share to consider. By focusing on energy-generating assets, it can expect earnings to remain stable over time, underpinned by the stable nature of energy demand. This is especially attractive today, with trade tariffs threatening to throw the global economy (and with it profits for many UK shares) off the rails. A reason why I like Bluefield Solar specifically is its strategy of investing mostly in Britain, where government policy is especially supportive of the renewable energy sector. Over the long term, I expect dividends here to rise strongly along with earnings, driven by growing demand for greener power sources. The post £15k invested in these dividend shares could yield an enormous second income! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Barratt Redrow and Taylor Wimpey Plc. The Motley Fool UK has recommended Barratt Redrow. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
5 hours ago
- Yahoo
Asian Market Gems: Huanxi Media Group And 2 More Penny Stocks To Consider
As global markets navigate through varied economic conditions, including shifts in inflation and trade dynamics, investors are increasingly exploring diverse opportunities. Penny stocks, often associated with smaller or newer companies, continue to capture interest for their affordability and growth potential despite the term's outdated connotation. This article will explore several Asian penny stocks that stand out due to their financial strength and potential for long-term value. Top 10 Penny Stocks In Asia Name Share Price Market Cap Financial Health Rating Lever Style (SEHK:1346) HK$1.40 HK$883.33M ★★★★★★ Ever Sunshine Services Group (SEHK:1995) HK$2.12 HK$3.66B ★★★★★☆ TK Group (Holdings) (SEHK:2283) HK$2.31 HK$1.92B ★★★★★★ CNMC Goldmine Holdings (Catalist:5TP) SGD0.45 SGD182.38M ★★★★★☆ Goodbaby International Holdings (SEHK:1086) HK$1.15 HK$1.92B ★★★★★★ T.A.C. Consumer (SET:TACC) THB4.60 THB2.76B ★★★★★★ China Sunsine Chemical Holdings (SGX:QES) SGD0.645 SGD614.93M ★★★★★★ Yangzijiang Shipbuilding (Holdings) (SGX:BS6) SGD2.40 SGD9.45B ★★★★★☆ Ekarat Engineering (SET:AKR) THB0.95 THB1.4B ★★★★★★ Beng Kuang Marine (SGX:BEZ) SGD0.24 SGD48.53M ★★★★★★ Click here to see the full list of 974 stocks from our Asian Penny Stocks screener. Underneath we present a selection of stocks filtered out by our screen. Huanxi Media Group Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Huanxi Media Group Limited is an investment holding company involved in media and entertainment operations in the People's Republic of China and Hong Kong, with a market cap of HK$1.65 billion. Operations: The company generates revenue from its investment in film and TV programmes rights, amounting to HK$34.18 million. Market Cap: HK$1.65B Huanxi Media Group, with a market cap of HK$1.65 billion, is currently unprofitable and has less than a year of cash runway based on its free cash flow. Despite generating HK$34.18 million in revenue from film and TV rights, it lacks meaningful revenue streams. The company has reduced losses over the past five years by 4.8% annually and forecasts significant revenue growth at 41.86% per year due to new film releases like "The Stage." Its short-term assets exceed liabilities, but recent insider selling raises caution for investors amid high share price volatility. Click here to discover the nuances of Huanxi Media Group with our detailed analytical financial health report. Explore Huanxi Media Group's analyst forecasts in our growth report. Broncus Holding Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Broncus Holding Corporation is a medical device company that develops interventional pulmonology products for markets in Mainland China, the European Union, and internationally, with a market cap of HK$1.29 billion. Operations: Broncus Holding's revenue comes from its medical products segment, totaling $8.13 million. Market Cap: HK$1.29B Broncus Holding Corporation, with a market cap of HK$1.29 billion, is gaining traction in the medical device sector following recent approvals for its BroncAblate system in China. This innovative lung cancer treatment device marks a significant advancement in minimally invasive therapy. Despite being unprofitable with a negative return on equity of -9.03%, the company has improved its financial position by achieving positive shareholder equity and reducing losses by 27.8% annually over five years. With no long-term liabilities and sufficient cash runway exceeding three years, Broncus is poised for revenue growth projected at 24.72% per year amidst high share price volatility. Click here and access our complete financial health analysis report to understand the dynamics of Broncus Holding. Gain insights into Broncus Holding's outlook and expected performance with our report on the company's earnings estimates. Bosideng International Holdings Simply Wall St Financial Health Rating: ★★★★★★ Overview: Bosideng International Holdings Limited operates in the apparel business in the People's Republic of China with a market capitalization of approximately HK$50.17 billion. Operations: The company's revenue is primarily generated from Down Apparels at CN¥21.71 billion, followed by Original Equipment Manufacturing (OEM) Management at CN¥3.42 billion, Ladieswear Apparels at CN¥651.15 million, and Diversified Apparels at CN¥231.76 million. Market Cap: HK$50.17B Bosideng International Holdings Limited, with a market cap of approximately HK$50.17 billion, has demonstrated stable financial health and growth in the apparel sector. The company reported sales of CN¥25.90 billion for the year ended March 31, 2025, up from CN¥23.21 billion the previous year, alongside net income growth to CN¥3.51 billion from CN¥3.07 billion. Earnings per share have also increased slightly over the past year. Despite significant insider selling recently, Bosideng's debt is well-managed with more cash than total debt and its assets comfortably cover liabilities, indicating robust operational stability in a volatile market segment like penny stocks. Dive into the specifics of Bosideng International Holdings here with our thorough balance sheet health report. Understand Bosideng International Holdings' earnings outlook by examining our growth report. Taking Advantage Explore the 974 names from our Asian Penny Stocks screener here. Want To Explore Some Alternatives? Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SEHK:1003 SEHK:2216 and SEHK:3998. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data
USA Today
19 hours ago
- USA Today
How Trump's personal aesthetic is redefining White House décor: 'I picked it all myself'
The president's personal design choices are clear as the Oval Office and the White House grounds get a makeover. 'It keeps my real estate juices flowing,' he says. WASHINGTON - Donald Trump once said real estate runs in his blood. In the late 1970s, he made a splashy entrance into the New York City real estate scene with the glitzy transformation of the crumbling Hotel Commodore into the Grand Hyatt on Fifth Avenue. When he bought Mar-a-Lago, the South Florida estate built for socialite Marjorie Merriweather Post, he added a 20,000-square-foot ballroom. In Washington, D.C., he turned the city's historic Old Post Office into a luxury hotel. Now 50 years on, he has a new pet project: 1600 Pennsylvania Avenue. Six months since he moved back into the White House, Trump's Oval Office is bathed in a sea of gold and gives a glimpse of his maximalist design approach. Gold-colored appliqués on the fireplace, gilded mirrors and ornate Rococo-style 18th and 19th century dessert stands and flower vases from London and France sit on the mantle. The walls are choc-a-block with paintings of former presidents in heavily ornate gold frames. The Cabinet Room has been outfitted with new ceiling medallions and a grandfather clock. 'I picked it all myself," he said. "I'm very proud of it." There's even a painting of Trump by an 87-year-old artist who said he was surprised to find out his work was being showcased in the West Wing. Meanwhile, Trump has also ripped up the sod in the Rose Garden in favor of a 'gorgeous stone' patio − work paid for by the same nonprofit that funded the Washington Monument's restoration work after a 2011 earthquake − and announced plans to build a ballroom in the White House. He recently erected two 88-foot-tall flagpoles on the south and north lawns of the White House. To be sure, presidents for decades have put their own personal touches on the Oval Office and the White House. President Franklin D. Roosevelt built an indoor swimming pool for physical therapy while coping with polio and President Richard Nixon installed a one-lane bowling alley at the White House's adjacent Old Executive Office Building. The Oval Office often gets new carpet and other furnishings for new presidents. Under Joe Biden, it sported a decidedly muted and understated look. Swedish ivy that has been in the Oval Office for decades graced the fireplace mantle, busts of famous Civil Rights leaders sat on desks and a few gold-framed portraits of past presidents hung on the walls. But for Trump, the work feels far more personal. 'It keeps my real estate juices flowing,' he told a reporter in February. Penchant for gold One common thread that runs through most of the interior redecoration efforts: a penchant for gold. During a recent meeting in the Cabinet Room, Trump waxed poetic about 'gold-leafing' the trims, the need for decorative ceiling medallions around hanging lights and finding the right frames for the new portraits of presidents that adorn the room's walls. Barbara Res, a former vice president at Trump Organization who oversaw construction, has long been familiar with Trump's fascination with the color gold. While working on projects such as the Trump Tower and Plaza Hotel, he had been adamant about incorporating polished bronze and brass which can give the appearance of gold, she said. Public areas such as atriums, ballrooms and restaurants were awash with polished bronze or brass on door frames, railings, elevators and ceilings. 'He used the word 'class' a lot, and it was a high-class thing for him,' Res told USA TODAY. 'It conveyed an illusion of taste and wealth, and that's why he wanted to gild everything.' For his Trump Tower triplex apartment in the early 80s, he hired the famed design veteran Angelo Donghia to do up the place. Taking into consideration Trump's favorite color and after trying to reason with him ("that's the worst thing you can do with Donald," said Res), Donghia introduced subtle gold touches throughout. 'It wasn't normal, but it was almost normal,' Res said with a laugh. Trump's sensibility for 'highly polished metals' went into overdrive after he visited Russia in the late 1980s, touring such places as the Hermitage State Museum and the Winter Palace, Res said. 'He came back, and he changed everything,' she said. 'He hired a guy who was a decorator for the high-roller suites in casinos. They have a lot of gold and mirrors everywhere.' After the apartment was done, Res, who then worked in the 58-story Midtown Manhattan building, said Trump brought her up to show her the remodeled place and asked her what she thought of it. 'I said 'how can you sleep here?,' she said. 'He was highly insulted by it.' Trump has always had an eye for design details. On his recent presidential visit to Qatar, he admired the white marble in a palace, saying it was 'very hard to buy.' 'As a construction person…this is perfect marble. This is what they call 'perfecto',' he said. Decorating the White House Now, as commander-in-chief, Trump has access to the White House Vault. A treasure trove of silver and bronze gilded objects he may have marveled at in palaces and museums around the world is now at his disposal. And he is not wasting his chance to play decorator. During the June Cabinet meeting, he said he had been spending a lot of time there, scooping up pieces he might call perfecto. 'The vaults are where we have a lot of great pictures and artwork,' he said, before offering insights into his obsession with right-sized and right-looking frames. 'I'm a frame person. Sometimes, I like frames more than I like the pictures,' he said. During Canadian Prime Minister Mark Carney's visit to the White House in May, Trump sought to highlight his efforts. 'You see the new and improved Oval Office as it becomes more and more beautiful with love,' he said. 'You know, we handle it with great love and 24 karat gold.' Other than gold, the president also favors patriotic touches as design flourishes. A copy of the Declaration of Independence occupies pride of place in the Oval Office, placed behind two blue velvet curtains that hang from a gold-colored rod. There are also some bright and cheerful-looking design elements such as colorful military campaign ribbons on the flags. A painting of Trump flanked by fellow Republican presidents Abraham Lincoln and Ronald Reagan hangs in the corridor close to the Oval Office by artist Dick Bobnick. When USA TODAY tracked down Bobnick, the 87-year-old artist based in Burnsville, Minnesota, said he had no idea his work was gracing the walls of the West Wing. He said he'd sent a photo print to the White House but never heard back. The artist, who is a Trump supporter, said he wanted to portray 'three of the strongest, most influential presidents this country has ever had at some of the most tumultuous times.' Bobnick, who has never visited Washington D.C., said he was 'flattered' the print had made an impression. 'I still have the original,' he said. Trump also believes the White House grounds are in need for improvement. The installation of the flagpoles on the White House lawns in June cost about $50,000 each, which Trump said he'd paid for himself. Congress gives every new president an allowance of $100,000 to refurbish the private residence and the Oval Office, for things such as furnishings and curtains. Work is currently in progress on the Rose Garden, which is located just outside the Oval Office, and where bilateral meetings with world leaders and news conferences are often held. The manicured lawn was ripped up to make way for a stone patio, like the one in Mar-a-Lago. Trump said he reached the decision after watching women in high heels at events struggling on the muddy lawn. The foliage, including the 200 rose bushes planted during a 2020 renovation overseen by First lady Melania Trump, will not be disturbed. "President Trump is a builder at heart, and he wants to help make the White House as exceptional as possible for generations of Americans to come," White House Press Secretary Karoline Leavitt told USA TODAY. The Rose Garden project, which is slated for completion in August, is funded by the Trust for the National Mall, a nonpartisan, nonprofit organization that has sponsored more than $75 million in restoration projects with the National Park Service since 2007. Some projects they have led include $22 million for the design and construction of the U.S. Park Police Horse Stables and Education Center on the National Mall in 2023 and a $7.5 million restoration of the Washington Monument after a 2011 earthquake. Julie Moore, a spokesperson for the nonprofit, said it accepts private donations to support the National Park Service's projects at the White House gardens not supported by federal funding. Moore said the project will not use taxpayer dollars but declined to name donors saying they have chosen to remain anonymous. Moore said the funds for the project had already been secured. A White House ballroom? Trump's next project, if it gets off the ground, promises be a grand one — and one that he has, offered to pay for himself. Trump first floated the idea for a ballroom, like the one in Mar-a-Lago, during his first run for president in 2016. The Obama administration confirmed to USA TODAY in 2016 that Trump had offered to spend $100 million on a new White House ballroom, but that the offer was quickly rejected. Back then, Trump derided White House events for foreign dignitaries held in tents, saying that was an inappropriate way to entertain them. State dinners are generally held in the East Room, which at 3,000 square feet is the biggest of the state rooms and the only one that runs the entire width of the executive mansion. It's also where dances, receptions, concerts and news conferences are held. During an executive signing in the East Room in February, Trump recalled his offers to both Obama and Biden. 'This was going to be the reception room,' he said referring to his idea for a revamped East Room that would have served as the entrance to the ballroom he proposed. He said the East Room felt "too crowded." In June, Trump announced in a Truth Social post that he had 'inspected" the site, which according to a White House official, is located on the east side of the White House. Trump also highlighted his construction and real estate credentials in the post, saying no president before him had "any knowledge or experience in doing such things." Leavitt said "discussions about how to execute this plan (for a ballroom) are ongoing." Trump's day job may have changed to more weighty subjects, but passion projects from his former life are still what bring him joy, he recently mused on Truth Social. "These are the 'fun' projects I do while thinking about the World Economy, the United States, China, Russia, and lots of other Countries, places, and events," he wrote. Swapna Venugopal Ramaswamy is a White House correspondent for USA TODAY. You can follow her on X @SwapnaVenugopal
