Shares in Barratt Redrow increased by over 2% in early trading after the housebuilder announced that its total completions fell by 12% year-on-year to 3,223 in the 17 weeks to 25 October.

In this period, the firm’s underlying private reservation rate per week stood at 0.53, down from 0.57 in the prior year, although its total reservation rate jumped from 0.57 to 0.59.

In its AGM trading update, its forward order book stood at 11,086 on 25 October, which is a 3.9% annual increase, while its forward order book value rose marginally to just over £3.3bn.

Barratt Redrow stated that its current guidance remains unchanged, after it remained “resilient” in a challenging market, and it remains focused on driving cost efficiencies, disciplined land investment and tightly managed control of work in progress.

Chief executive at Barratt Redrow, Dean Banks, stated: "Our trading performance in the first 17 weeks of the financial year has been resilient against a backdrop of challenging market conditions, with continued pressure on affordability. While the underlying private reservation rate has been softer, we have seen stronger demand from the private rental sector.

"Over the past two months, I have been working closely with colleagues, customers and suppliers to understand our strengths and our opportunities. I have seen first-hand the quality of our people, their commitment to excellence and the passion they bring every day. There is much to build on, and I look forward to sharing more in due course.

"We welcome the Government’s ‘Your First Home’ scheme and its support for first-time buyers. Alongside planning reform, the scheme has the potential, over time, to support increased housing delivery."

Investment director at AJ Bell, Russ Mould, said the market has "reacted with relief" that the housebuilder has reaffirmed its guidance, despite being on shaky foundations.

He concluded: "Completions are under pressure thanks to rising borrowing costs, which could make achieving the expected level of full-year volumes a tough ask. Demand in the private market is weak, reflected in lower reservation rates, although institutional buying for the private rental sector has helped pick up the slack. Barratt is doing its best to mitigate rising input costs through a disciplined approach, but margins are likely to remain under pressure.

"The order book looks relatively robust, and Barratt has a strong enough balance sheet to provide a buffer against the current sector headwinds while still being able to reward investors for their patience with share buybacks.

"Like its peers, Barratt will be looking ahead to the launch of the Your First Home scheme. While this could provide a helpful fillip, it seems unlikely to be as impactful as the Help to Buy scheme was in the 2010s. What Barratt and the wider industry needs is an improvement in the inflationary and interest rate environment, which is linked to global factors over which it has zero control."

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