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FTSE 100 jumps 162 points to 10,466 Brent crude futures fall then rise UK economy contracts 0.1% in April Housebuilders show strong recovery

4.17pm: SpaceX and US consumer confidence

The Footsie is heading towards sealing its strongest session in a while, with a gain over over 160 points currently.

British Aiways owner IAG is top of the leaderboard, up 6.7%, followed by miners and banks.

Both the FTSE 100 and FTSE 250 are up over 1.5%, with mid-cap gains led by miners, air travel stocks and Ceres Power.

Oil prices are softening again, with Brent crude down below $85 a barrel now, 3.5% lower on the day and $10 a barrel below highs at the start of the week.

The SpaceX indicative price is still falling but remains well above the issue price.

Latest was $160 apiece, which would be around a 19% premium to the IPO price.

Elsewhere, the US consumer sentiment has improved this month, with the University of Michigan consumer sentiment index rose to 48.9 in June from 44.8 in May, above the consensus forecast of 46.0.

Grace Zwemmer at Oxford Economics says: "Easing gas prices helped lift consumer sentiment this month. However, consumers are still broadly anxious about the health of the economy.

"Both measures of inflation expectations ticked down in June but remain higher than their pre-war levels. Stability in inflation expectations could help the Federal Reserve view the oil price shock to inflation as a one-off."

3.41pm: SpaceX indicated opening price is higher, but falling

The indicative opening price of SpaceX is falling, but still well above the $135 issue price.

Trading may begin around 12:30pm ET (5.30pm UK) or maybe earlier.

Shares are indicated to open at just $168.75 each, a gain of around 25%.

First it was a $174, then $171 then $170, and now below that.

An extra nugget within the SpaceX story is that Elon Musk, who owns about 42% of SpaceX, is going to become the first dollar trillionaire if the price is much above the issue price.

3.21pm: Iran deal based on performance, says White House insider

A White House official is leaking more information on the Iran deal, presumably to counter the "fake news" statements from Tehran.

Reports citing a senior US administration official stress that any sanctions relief would be strictly conditional on Tehran meeting its commitments.

According to the official, the deal would immediately reopen the Strait of Hormuz, easing the blockage for global energy.

There will be "no money" released to Tehran "until they perform", the reports say, suggesting sanctions relief and access to frozen funds would be tied to verified compliance.

Story Continues

The official also said Iran's nuclear material would be "destroyed and removed" and that the country's nuclear programme would be dismantled under the agreement. In addition, the deal would require Iran to cease funding terrorist groups.

What do markets make of it? Brent crude is up above $86 a barrel again, down 1.1% on the day.

The FTSE is striding higher, led by coppper miners Antofagasta and Anglo American, sandwiching British Airways owner IAG, all up over 5.5%.

Next are banks, precious metals miners, and Rolls-Royce. SpaceX investors Scottish Mortgage is up 3.6%, while fellow big tech investor Polar Capital Tech Trust is up 4.3%, catching up with last night's gains.

There are only nine London blue-chjp names in the red, with losses for BP and Shell trimmed slightly, to 2.2% and 1.9%.

3.10pm: SpaceX price expected at 29% premium

Newswire reports suggest the SpaceX IPO attracted more than $350 billion of total investor demand, including over $250 billion from institutional investors alone, making it one of the most heavily oversubscribed offerings in market history.

Institutional allocations appear to have been skewed towards long-term investors, with around 70% of shares sold to institutions allocated to long-only funds and sovereign wealth fundsm, Reuters reported.

The reports confirm that retail investors received about 20% of the shares sold in the IPO, while lower than the mooted 30% is far larger allocation than is typical for a US mega-cap flotation.

According to pre-market indications, SpaceX shares are set to open at around $174, compared with the IPO price of $135, implying a gain of almost 29% on debut.

If that pricing holds, SpaceX's market value would surge well above the $1.75 trillion valuation established in the offering, nearer $2.3 trillion, just shy of Amazon's $2.5 trillion market cap.

2.52pm: Volatile US open after Trump slams Iran

US stocks opened higher but gains were immediately wiped out after some confusion emerged about the purported Iran peace deal.

The Nasdaq has dropped 0.7%, the S&P is down 0.3% and the Dow Jones is just above flat, having opened up around 0.6% higher in initial trades.

President Donald Trump posted on social media that terms Iran leaked out "have NOTHING to do with the terms that were agreed to, in writing". He says Tehran's statement is "dishonourable" and "bears no relation to the truth" and that "they better get their act together, and FAST".

Oil prices have also spiked back to where they were at midnight, with Brent back up to $89 a barrel.

2.10pm: Scottish Mortgage and other trusts that have SpaceX stakes

Nasdaq has announced that the IPO of SpaceX is to be released for stock price quotes at 9:50am Eastern Time (2.50pm London time).

As well as the retail investors excited about the IPO, there are also several investment trusts that have been long backers of the rocket and satellite company, such as Scottish Mortgage Investment Trust PLC (LSE:SMT), which invested as long ago as 2018.

SMT's stake was 21% of its portfolio value, according to an update last week.

Edinburgh Worldwide Investment and Baillie Gifford US Growth Trust, also managed by Baillie Gifford, have sizeable stakes, along with the Schiehallion Fund Ltd.

Schiehallion said it had 14.5% of its assets in SpaceX, Baillie Gifford USA 16.5% and EWI 22%.

Also, Google parent Alphabet owns a stake of around 4.9% of the $1.77 trillion company, having bought in over a decade ago.

Existing backers like Scot Mort and Alphabet are subject to a lockup period after the IPO, liquidity limits and a potential tax hit on an outright sale.

There is a staggered lock-up structure, with expiration at 180 days for general insiders, while Musk and other significant stakeholders subject to a longer 366-day lock-up. Musk is not expected to sell shares at this point, though.

1.44pm: Market scepticism recovering

Oil prices are creeping up again. Brent crude, having fallen from $95 on Thursday night to almost $86 a barrel this morning, is now back up at almost $88.

A report from Axios suggested that both sides have agreed the text, which has been cleared at high levels in Iran but may still lack approval from Supreme Leader Mojtaba Khamenei.

The two sides are said to have agreed the text of a proposed memorandum that would immediately reopen the Strait of Hormuz, extend the ceasefire by 60 days and provide limited sanctions relief in exchange for Iranian commitments on its nuclear programme.

If signed, the agreement mediated by Qatar and Pakistan would be known as the Islamabad agreement.

"Markets are taking Trump’s latest declaration with a degree of caution", says market analyst Fawad Razaqzada at Forex.com.

Economist Kallum Pickering at Peel Hunt notes that President Trump has for the past two months "repeatedly signalled that a deal between the US and Iran to end the conflict and re-open the Strait of Hormuz is imminent".

"Each time, however, negotiations have broken down, or Iran has accused the US of making unjustified claims of a breakthrough."

After last night's announcement, "financial markets appear to be reacting as if a deal is underway"... though "let me emphasise, we have seen this before only for no breakthrough to emerge in the end".

Says Pickering: "If a deal is indeed reached, a big if, expect markets to raise expectations for growth in major economies as inflation worries ease, with expectations for further central bank rate hikes curtailed."

Razaqzada notes that while Trump's claim to have "ended the war with Iran" triggered an immediate risk-on reaction, with equities and bonds in demand as oil fell, "the follow-through remains surprisingly restrained for what would be a significant geopolitical breakthrough".

He adds that "there are still important hurdles to overcome", with Iranian officials have not publicly endorsed the reported framework, and questions remain over whether Tehran will seek additional concessions before signing any deal

1.07pm: US stocks to extend gains

Wall Street is heading for a firmer open, with futures ticking higher as investors weigh President Donald Trump’s sudden shift on Iran and turn attention to a blockbuster market debut.

Dow Jones futures are up over 0.7%, while those for the S&P 500 and the Nasdaq futures are up nearer 0.6%, all extending the strong gains from last night.

That rally came after Trump said US military strikes on Iran were "cancelled" and suggested a peace deal could be close, as "discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved".

The Nasdaq jumped 2.5%, the Dow finished up 1.9% and the S&P gained 1.8% as risk appetite returned.

Today, geopolitics looks set to fade into the background, with all eyes are on the much-anticipated SpaceX IPO, for which many are holding their breath.

12.34pm: Fall in UK GDP 'won't alter BoE outlook', says Barclays

UK monthly GDP contracting 0.1% in April will not alter the Bank of England's thinking much, says economist Jack Meaning at Barclays.

The monthly contraction was in line with other soft Q2 data, he points out, with PMI data weakening, particularly in services, as well as weaker spending signals from Barclays spend trends data.

"We continue to expect the impact of the Middle East conflict to feed into more subdued activity in the next few months," he adds, retain his expectation of 0.1% quarter-on-quarter growth in Q2.

"For the Bank of England, we think the data today will validate their expectation of Q2 growth of 0.1% q/q heading into the meeting next week (18 June), and won't alter their outlook for GDP growth.

"We now look to BoE​/​Ipsos inflation expectations data (12 June), the May inflation data (17 June) and April labour market release (18 June) for any surprises.

"We think the bar for coming data to change the outcome of the June meeting is high, although it may, at the margin, affect the vote split and tone of individual paragraphs."

11.54am: Shell, BP and BAE weigh

Weighing on the index today are falls for energy and defence groups, some heavyweights among only 16 London blue-chips that are in the red currently.

Oil giants BP and Shell are down 4.4% and 3.25%. Defence group BAE Systems is down 1.9%, followed by energy suppliers Centrica and SSE, down 1.9% and 1%.

Next are Sage Group, Bunzl, National Grid, LSE and British American Tobacco.

11.22am: SpaceX UK investors own almost $364 million of the shares

Some more precise details are available on the scale of UK retail participation in SpaceX's record-breaking IPO.

Marex, which operated the UK retail offer through the Winterflood Retail Access Platform, said 2,696,175 shares were allocated to UK retail investors at the IPO price of $135 (£100.65) per share.

This means UK investors own almost $364 million of SpaceX shares.

Investors who applied for up to $2,700 worth of stock received their allocations in full, while larger applications were scaled back. No investor received more than 1,000 shares, Marex said.

Overall, 61% of retail investors received a full allocation, highlighting both the strong demand for the flotation and the relatively generous treatment of smaller investors.

As well as the $75 billion of shares sold in the IPO, underwriters also have the option to sell a further 83.3 million shares.

11.04am: SpaceX touching down

SpaceX’s much-anticipated IPO "has been a roaring success", says Kathleen Brooks at XTB, with huge demand for the shares.

The IPO has raised $75 billion, making it the largest ever, valuing the company at $1.77 trillion, the seventh largest firm on the US stock market.

Trading in New York's Nasdaq begins later, with the company worth more than JP Morgan, Meta, Eli Lilly, Berkshire Hathaway and Tesla, Brooks notes.

It's free float of $75 billion is more on a par with the market caps of Airbnb, Ross Stores and General Motors, though.

"Today comes the real test," says Brooks, as the shares trade on the open market for the first time.

"After Thursday’s stock market rally the scene is set for a strong start, but any sign of weakness on the main US tech exchange could send shivers across financial markets."

She notes reports that the allocation of shares to the retail market has been lower than originally reported at roughly 20% versus the mooted 30%.

"This is still far higher than the usual allocation to the retail trading community and suggests that institutional demand far outstripped supply.

"This signals that everyone wants a slice of SpaceX right now, which could lead to more shares coming to market, should the underwriters exercise their right to sell additional shares in the coming weeks."

10.30am: More market movers

The FTSE 100 has pared some of the morning's gains, and is now 141 points up at 10,445.02. Here's a look at some of the other stocks making big moves today.

Kier Group PLC (LSE:KIE) rose 3.8% after securing a £140 million contract extension with South West Water, part of Pennon Group PLC (LSE, OTC), running through to 2028. The deal extends a 20-year partnership and keeps Kier as sole contractor on the network services alliance. Read more

BSF Enterprise PLC (LSE:BSFA, OTC:BSFAF) plunged 42% after its first T-Rex Leather handbag failed to meet its reserve at a Paris auction. The €150,000 top bid fell short, leaving the item unsold. The company has now withdrawn it for private sale, but says interest in its bio-leather technology remains strong, with ongoing talks in the sportswear and automotive sectors. Read more

Virgin Wines UK PLC (AIM:VINO) fell 14% to 28.8p after warning of a swing to a £1.5 million pre-tax loss for 2026 despite modest revenue growth. Higher duties and weaker consumer confidence weighed on profits. The group still highlighted improving sales momentum and rising customer acquisition, alongside plans for a new £700,000 warehouse investment funded from cash reserves. Read more

MedPal AI plc (AIM:MPAL) surged 25% to a three-month high around 3.88p after UK approval of Novo Nordisk’s oral weight-loss drug boosted sentiment around its new clinic model. The company says the timing is ideal, with its New Health service launching just as demand for GLP-1 treatments expands. It expects oral options to widen uptake beyond injectables, supported by strong US prescription trends. Read more

Cizzle Biotechnology Holdings PLC (LSE:CIZ) shares jumped 10.9% to 3.05p after the company secured a US patent covering methods used to detect its CIZ1B lung cancer biomarker. The patent strengthens its position in a key market and supports plans with partner Cizzle Bio Inc to commercialise the test across North America and the Caribbean. Read more

9.20am: Footsie bounces higher

The FTSE 100 has extended its gains as the morning progresses, now up 148 points at 10,451.84 for a gain of close to 1.5%.

BA-owner International Consolidated Airlines Group SA (LSE:IAG) is now leading the pack, with a 5.5% gain, while Rolls-Royce Holdings PLC (LSE:RR.) has edged into second place, up 4.5%.

"Global equities are ending the week with a powerful relief rally as markets price a rising chance of a US-Iran diplomatic breakthrough," commented Tickmill Group's Patrick Munnelly. "President Trump said the US is nearing a deal with Tehran, raising hopes that a conflict which has driven volatility for more than three months could be moving toward resolution."

Munnelly pointed out that oil is the clearest expression of the shift in risk premia. Brent has fallen another 2% to around $88.50/bbl after President Trump softened military threats and pointed to high-level talks with Iranian officials.

"A formal signing ceremony could reportedly take place as soon as this weekend in Europe, with JD Vance expected to attend," he added. "The market is moving from pricing escalation risk to pricing de-escalation relief. That does not remove geopolitical uncertainty, but it materially reduces the immediate threat of a sustained energy shock."

9am: Housebuilders perk up

UK housebuilders surged on Friday as investors warmed to the prospect of lower interest rates and easing tensions in the Middle East.

Persimmon PLC (LSE:PSN) rose 3.9%, Barratt Redrow PLC (LSE:BTRW) gained 3.7%,Taylor Wimpey PLC (LSE:TW.) added 2.9%, while Vistry Group PLC (LSE:VTY) led the sector with a 5.1% jump.

The gains came despite data showing the UK economy shrank by 0.1% in April. Instead of spooking markets, the weaker GDP reading fuelled expectations that the Bank of England may cut rates sooner rather than later to support growth. The BoE's rate-setting committee meets next week.

Hopes of a peace agreement in the Middle East also lifted sentiment. Oil prices retreated on the prospect of fewer supply disruptions, easing inflation concerns and reducing pressure on policymakers to keep rates higher for longer.

Government bond prices rose, and yields fell as investors increasingly priced in rate cuts rather than hikes. For housebuilders, cheaper borrowing costs could mean more affordable mortgages and stronger demand, helping a sector that has struggled under the weight of higher interest rates.

8.15am: Footsie bounces at the open

The FTSE 100 jumped at the open, gaining 89 points to 10,392.88 in the first 15 minutes of trading on hopes that an end to the conflict in the Middle East is near.

Antofagasta PLC (LSE:ANTO) led the gainers, with a 5.3% gain as copper prices surged on the potential end to the war. Fresnillo PLC (LSE:FRES) was close behind, up 4.9%, while housebuilder Persimmon PLC (LSE:PSN) rose 4.5% after a report suggesting that recent buying activity had been brisk. International Consolidated Airlines Group SA (LSE:IAG) added 4.4% as oil prices fell below $90 a barrel.

BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) have come under pressure due to the lower oil prices, down 3.3% and 2.4% respectively.

"The FTSE100 rode on the coattails of improved global investor sentiment, with a strong open which built on a resilient performance in the previous session," commented interactive investor's Richard Hunter. "The gains came despite the oil majors following the oil price south, with a broad rally which included the housebuilders after a report suggesting that recent buying activity had been brisk."

While markets staged a strong recovery on hopes that the Middle East conflict could finally be coming to an end, Hunter noted that for the US there is only one show in town today.

"The highly anticipated SpaceX IPO will debut today after what has been an unusual run-up," Hunter said. "The price of $135 per share was announced in advance, Elon Musk reportedly negotiated special deals with Wall Street advisors, and the percentage of shares available to retail investors is much higher than would normally be the case. The offering will raise $75 billion for the company, which will be valued at $1.75 trillion."

7.55am: Fickle markets

Markets look set for a positive end to the week after President Trump made a massive about-turn on his plan to "hit Iran hard."

It's not the first time he's indicated a peace deal is at hand. According to a CNBC review of the president’s social media posts and public remarks, Trump has signalled or stated outright more than 30 times that a deal is nearly at hand. CNN puts it higher at 38 times since before April's ceasefire was announced.

"The past 24 hours has seen a sharp reversal in the trajectory of the US–Iran conflict, as mounting hopes of a deal have seen Brent crude fall -1.62% overnight, leaving it on track for a 3-month low of $88.80/bbl. So that’s led to a huge rally across bonds and equities, as lower oil prices have eased fears about a prolonged stagflationary shock," commented Deutsche Bank's Jim Reid.

"With oil prices coming down sharply, alongside hopes that the Strait of Hormuz will reopen, that’s seen investors price out the chance of rapid rate hikes this year. Indeed, as we go to press, markets are now pricing in just a 77% chance of a Fed rate hike by December, having been fully priced in earlier this week."

7.35am: Middle East conflict hits the economy

The UK economy hit a small bump in April, with GDP slipping 0.1% after solid growth in February and March. The monthly decline was largely down to a 0.2% drop in the services sector, while construction edged higher and production was flat.

The bigger picture, though, remains more encouraging. The economy expanded by 0.7% over the three months to April, marking the fifth consecutive period of three-month growth. Services continued to do much of the heavy lifting, with information and communication performing particularly well, alongside retail and professional services. Construction also made a strong contribution.

There were some headwinds. Businesses across sectors said conflict in the Middle East affected trading conditions, with some reporting weaker demand and higher energy and fuel costs.

Even so, GDP was still 1.2% higher than a year earlier, suggesting the UK's growth story remains intact despite a softer start to the second quarter.

FTSE 100 pre-market open

Stocks in London are expected to open higher after US President Donald Trump backtracked on a threat to "hit Iran hard" as he hinted at a major breakthrough in talks.

The FTSE 100 has been called 81 points higher, after closing Thursday's session 49 points up at 10,304. Brent crude has fallen 2% to $88.58 a barrel, while US WTI futures are also lower.

"What’s unbelievable is that after three months of this nonsense, markets still move on words that have little substance," commented Swissquote's Ipek Ozkardeskaya. "This morning, US crude is testing the $85pb level to the downside, its lowest level since the early days of the Iranian conflict. Yet there is no confirmation from Iranian media, and there is nothing to suggest that this time will be the charm."

Overnight, US stocks staged a powerful comeback, with investors piling back into risk assets after President Trump said he had cancelled planned military strikes against Iran and suggested a diplomatic agreement could be close at hand.

The tech-heavy Nasdaq led the advance, jumping 2.5% as traders reversed much of Wednesday's sharp sell-off. The Dow Jones Industrial Average surged 1.9%, and the S&P 500 climbed 1.8%.

As Friday trade draws to a close in Asia, Tokyo's Nikkei is up 2.9%, Hong Kong's Hang Seng is 1.7% higher, and Shanghai's SSE Composite has gained 1.2%. In Seoul, the Kospi has rallied 4.4% after earlier trading 8% higher as foreign investors shifted to net buying for the first time in 25 trading days. Sydney's ASX 200 closed 2% firmer.

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Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.

If you are wondering whether Barratt Redrow’s current share price reflects its true worth, this article walks through the key numbers so you can judge the valuation for yourself. The stock has been under pressure, with returns of 0.4% decline over 7 days, 0.4% decline over 30 days, a 29.8% decline year to date, and a 38.3% decline over the past year, extending to a 53.6% decline over five years. This weak share price performance has put valuation firmly in focus for investors, as longer term holders have seen value erode over several years. With the stock now trading near these lower levels, the central question is whether the current price fairly reflects the company’s prospects or has moved too far in either direction. Simply Wall St’s valuation model currently gives Barratt Redrow a score of 3 out of 6, which points to some areas of potential undervaluation alongside clear risks. The next sections will break this down using different valuation approaches before closing with a broader framework for understanding what “fair value” really means for this stock.

Find out why Barratt Redrow's -38.3% return over the last year is lagging behind its peers.

Approach 1: Barratt Redrow Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts them back to today’s value to estimate what the business might be worth right now.

For Barratt Redrow, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in £. The latest twelve month free cash flow is £95.63m. Analyst and extrapolated estimates suggest free cash flow of £43.40m in 2026 and £474.00m in 2029, with further projections reaching £1.24b in 2035. Simply Wall St uses analyst estimates for the earlier years and then extrapolates beyond that using its own assumptions.

Bringing all those projected cash flows back to today’s terms gives an estimated intrinsic value of £9.25 per share. Compared with the current share price, the DCF output implies the stock is trading at a 71.2% discount to this estimate, which points to a wide gap between price and modeled value.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Barratt Redrow is undervalued by 71.2%. Track this in your watchlist or portfolio, or discover 10 more high quality undervalued stocks.BTRW Discounted Cash Flow as at Apr 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Barratt Redrow.

Story Continues

Approach 2: Barratt Redrow Price vs Earnings

For a profitable business, the P/E ratio is a useful yardstick because it links what you pay for each share to the earnings that the company is currently generating. It gives you a quick sense of how many years of current earnings the market is effectively pricing in.

What counts as a “normal” P/E depends heavily on how fast earnings are expected to grow and how risky those earnings are. Higher growth and lower perceived risk usually justify a higher P/E, while slower growth or higher risk typically mean a lower P/E is more reasonable.

Barratt Redrow currently trades on a P/E of 17.31x. That sits slightly above the Consumer Durables industry average of 16.32x and close to the peer group average of 16.52x. Simply Wall St also calculates a “Fair Ratio” of 20.01x. This is its proprietary estimate of an appropriate P/E given Barratt Redrow’s earnings growth profile, industry, profit margins, market cap and specific risks.

This Fair Ratio goes further than a simple peer or industry comparison because it adjusts for company specific traits rather than assuming all firms deserve the same multiple. Comparing the Fair Ratio of 20.01x with the current 17.31x suggests Barratt Redrow trades below this model based estimate.

Result: UNDERVALUEDLSE:BTRW P/E Ratio as at Apr 2026

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 6 top founder-led companies.

Upgrade Your Decision Making: Choose your Barratt Redrow Narrative

Earlier it was mentioned that there is an even better way to understand valuation. This is where Narratives come in, giving you a simple story behind the numbers by linking your view of Barratt Redrow’s future revenue, earnings and margins to a forecast and then to a Fair Value on Simply Wall St’s Community page, which is used by millions of investors. You can compare that Fair Value with the current price and see whether your own story points you toward patience or action. Because Narratives update automatically when fresh news or earnings arrive, you might see one investor building a more optimistic Barratt Redrow Narrative around a higher Fair Value near £6.40, while another builds a more cautious one closer to £2.80, clearly showing how different assumptions about the same company can lead to very different decisions.

Do you think there's more to the story for Barratt Redrow? Head over to our Community to see what others are saying!LSE:BTRW 1-Year Stock Price Chart

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 BTRW.L.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Britain’s biggest housebuilder could turn to wood instead of bricks for new homes as the war in Iran pushes up construction costs.

Barratt Redrow, which built more than 16,000 new homes last year, said it was considering using more timber if bricks and other heavy materials became too expensive.

Builders across the country brace for a surge in costs triggered by the war in Iran. John Newcomb, the chief executive of the Builders Merchants Federation, said he was hearing of price increases of up to 20pc on some materials.

Bricks are fired in energy-intensive kilns, often powered by gas, which leaves them vulnerable to an Iran-driven price shock. European gas prices have nearly trebled since the conflict began. Steel and cement are also expected to increase in price.

Barratt Redrow said it expects build-cost inflation to average 2pc in the 12 months to June but warned that “higher energy costs are likely to be reflected in increased building material costs” in the following year.

“Our ability to switch from traditional to timber frame construction ... provides us with further flexibility should we see significant movements in our traditional construction input costs,” the company stated on Wednesday.

The use of timber frames in construction is thought to date back to the late Middle Ages, reaching a peak in the early 17th century. Timber structures fell out of fashion in the UK after the Great Fire of London of 1666. Brick was the dominant material used in the Victorian era – a period of significant housing expansion in industrial cities.

Barratt Redrow owns a timber-frame business called Oregon, which would allow it to scale up production. Using timber to build homes requires fewer bricks and metals.

In the same update, Barratt Redrow slashed its target for buying land for housebuilding projects. The builder said it expects to approve between 7,000 and 9,000 plots for purchase this year, down from previous guidance of 10,000 and 12,000. This will save up to £200m of cash.

“With a less certain backdrop, given recent geopolitical events and their likely impact on mortgage rates and build-cost inflation, we are being even more selective,” the housebuilder said.

“The ongoing conflict in the Middle East is contributing to increased economic uncertainty, including the potential for a more prolonged higher interest rate environment and renewed cost pressures.”

The announcement comes a week after rival Berkeley Group halted new land purchase and scaled back investment in its building projects, saying it was becoming impossible to build in London because of onerous regulations and soaring costs.

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Barratt Redrow logo

Key Points

Barratt Redrow reported resilient Q3 trading with reservations up 6.3% year‑on‑year and a forward order book up 11%, keeping the group on track to deliver 17,200–17,800 homes while management says incentives have not been increased and customer sentiment remains firm. Redrow integration is substantially complete and the group has confirmed £100m of cost synergies (an incremental £50m this year and the full amount by year‑end), while maintaining FY2026 build cost inflation guidance at around 2%. The company cut land approvals guidance to 7,000–9,000 plots and reduced expected land spend to £700–800m, but raised year‑end net cash guidance to £550–650m, noting geopolitical events and a potentially prolonged higher‑rate environment as key risks. Interested in Barratt Redrow plc? Here are five stocks we like better.

Barratt Redrow (LON:BTRW) reported resilient third-quarter trading, with CEO David Thomas telling investors that reservation activity has “held up well” despite a more uncertain geopolitical backdrop. On the call, Thomas said the company’s overall reservation rate was 6.3% higher than last year, including a 3% increase in the underlying private reservation rate, supported by a higher contribution from PRS and multi-unit sales.

Thomas added that sales incentives continued to support reservation activity and were “at levels in line with the Half Year.” The company’s forward order book is 11% higher, and management said it remains on track to deliver housing volumes in line with guidance of 17,200 to 17,800 homes.

Reservations, incentives and customer sentiment

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Asked whether the company had increased incentives to sustain reservations, Thomas said it had not. “We’re not feeding in a higher level of incentive to maintain reservations,” he said, emphasizing that performance varies across a portfolio of more than 400 sites and that incentives are managed “site by site within the geography.”

Thomas said reservation trends have not shown a meaningful shift since the half-year results in February, noting that the company has seen “a slight strengthening” if anything. While he acknowledged customers are asking more questions about mortgages and mortgage rates, he said it had “clearly not to date impacting customer sentiment, inquiries, or reservation levels.”

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COO Mike Roberts also pushed back on the idea that buyers were bargaining harder. “We’re not seeing that people are trying to drive a harder bargain in terms of the purchase process,” Roberts said, adding that Barratt Redrow has a structured sales process and “control[s] the negotiation around the incentives available.”

Story Continues

Thomas later reiterated that incentives are actively managed across the site base, with variation by location and sales pace. He noted that mortgage lender rules can limit how far incentives can be increased, and at times the company may need to adjust gross prices instead.

Build activity and cost inflation outlook

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Roberts said sales and build positions are where the company would expect at this stage of the year. He said only a “handful of sales” are still required for the year, and “all of our year-end private units are now roofed.” Build teams are now focused on delivering reserved homes to meet customer handover requirements and quality controls.

With an advanced build position and “limited inflationary pressure on the current year build activity,” Roberts said the company is maintaining its FY 2026 build cost inflation guidance. He reminded investors that management expects total build cost inflation of around 2% for the year, comprising 1% in the first half and an estimated 3% in the second half. The company said it would provide a further update in July.

On potential cost pressures tied to recent Middle East events, Thomas said the situation has been developing for only a short period and pointed to three primary channels of potential impact:

Transportation to site Diesel usage on site across the company and supply chain Energy costs in the supply chain, particularly for certain materials

In response to a question about whether suppliers were already raising prices, Thomas said it was “more about delivery charges at this point,” though he acknowledged suppliers are seeing cost pressure to varying degrees.

Thomas compared the current environment to the start of the war in Ukraine, arguing the starting point now appears “slightly better” because earlier spikes were larger and the homebuilding industry was busier then. He also noted more capacity across the sector today, which could influence how build costs evolve.

Redrow integration and Synergy outlet rollout

Thomas said Redrow integration is “substantially complete,” with final IT integration scheduled to complete this month. He added that “all of the GBP 100 million cost synergies have now been confirmed.” The company expects to achieve an incremental GBP 50 million benefit to the profit and loss account in the current financial year, with a further GBP 30 million from July 2026 and the full GBP 100 million expected to flow through to the income statement by the end of December.

On outlet growth, Barratt Redrow said average sales outlet numbers were 408, essentially flat on the first half as expected. Thomas said the group launched its first two Synergy sales outlets at Curborough Fields in Lichfield ahead of schedule and expects to open a further six Synergy outlets by the end of June. Looking further ahead, management said 22 Synergy outlets are scheduled to open in FY 2027 and 15 in FY 2028. Including organic growth, the company reiterated its expectation for average sales outlets of between 425 and 435 in FY 2027.

When asked whether the outlet opening program could be adjusted if sales rates slow into 2027, Thomas said there is “a high degree of confidence” the FY 2027 outlet numbers will be delivered because lead times and existing site activity leave “not a huge amount of optionality.” He said FY 2028 outlet counts are more sensitive to land approvals made between now and the autumn.

Land approvals, cash guidance raised, and market risks

Thomas said the company is updating its land guidance as it remains selective in a market where it is seeing “fewer attractive opportunities.” During the period, Barratt Redrow approved 2,465 plots for purchase, bringing year-to-date approvals to just over 4,000 plots. The company is moving toward a longer-term model of “three and a half years owned and one year of controlled land,” which Thomas said remains the goal.

As a result, the company now expects total land approvals of between 7,000 and 9,000 plots for FY 2026, down from earlier expectations. It also expects land spend of GBP 700 million to GBP 800 million, compared with previous guidance of GBP 800 million to GBP 900 million. Thomas said that if the lower approval pace continues, it would likely have a “more significant effect on cash flows for land in FY 2027.”

The group raised guidance for its year-end net cash position to between GBP 550 million and GBP 650 million, up from GBP 400 million to GBP 500 million previously. Thomas said the change reflected “the timing of legacy building mediation payments, which are now expected to fall into next year,” as well as land cash spend timing.

On the broader outlook, Thomas said the strong order book and “good spring trading” support unchanged completions guidance, but warned that Middle East events could create industry headwinds through the potential for a “more prolonged higher interest rate environment” and cost pressures.

In Q&A, Thomas also addressed government support for first-time buyers, saying he was not aware of the government “talking to the industry” about a Help to Buy-style program. He reiterated the company’s view that some support is important for affordability, particularly for first-time buyers, and said prior industry support programs were paid for by housebuilders.

Thomas also said conditions in London remain challenging, citing affordability issues and “dramatic reductions in transaction level again” in that market.

Affordable housing and capital allocation comments

Thomas said the affordable housing market appears “in a much better position” than 12 months ago, pointing to an above-inflation settlement, improving visibility around rent convergence, and funding that can now be applied for. He acknowledged comments that some funding is back-end loaded into FY 2026 and FY 2027 but said the position is “materially better.”

On capital allocation, Thomas said the board keeps policy under review and acknowledged the decline in the share price, while also emphasizing the importance of a strong balance sheet. He said the company is currently executing a GBP 100 million share buyback program and that any further guidance would likely come at the September update.

Thomas closed by saying Barratt Redrow will return with a pre-close trading update on July 15.

About Barratt Redrow (LON:BTRW)

Barratt Redrow plc is an exceptional FTSE 100 listed UK home builder, building the homes the country needs, and dedicated to quality, service and sustainability. Together, we offer a range of highly respected and complementary brands, Barratt, David Wilson and Redrow. We put our customers at the heart of everything we do, through our focus on: ✅ Quality - We deliver high-quality, energy-efficient homes which are built to the highest standards. Together, we have held more NHBC Pride in the Job Awards than any other housebuilder, for 20 years.

The article "Barratt Redrow Q3 Earnings Call Highlights" was originally published by MarketBeat.

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Barratt Redrow has warned over rising build costs and the potential for interest rates to stay higher for longer due to the Iran war as soaring energy costs send material prices higher.

The UK’s biggest housebuilder said while build costs are set to remain in line with guidance at around 3% in its second half to the end of June, it expects price rises to pick up in its new financial year.

Soaring oil prices since the start of the war at the end of February have sent fuel and energy costs surging around the world, which is impacting the cost of raw goods and materials.

Barratt cautioned that “higher energy costs are likely to be reflected in increased building material costs in 2026-27”.

It confirmed its overall financial performance remained on track for the current year, with any direct impact from the Middle East conflict so far “limited”, but added that the outlook for 2026-27 was more uncertain.

It said: “The ongoing conflict in the Middle East is contributing to increased economic uncertainty, including the potential for a more prolonged higher interest rate environment and renewed cost pressures.

“While we currently expect any direct impact on 2025-26 to be limited, visibility beyond the current financial year remains more uncertain.

“In this context, we are closely monitoring developments while maintaining a disciplined approach to capital allocation, land investment and cost control, ensuring we retain the flexibility to adapt to changing market conditions.”(PA Graphics)

It is set to give more details on expected build cost inflation and market conditions at its end-of-year trading update in mid-July.

The group – which became the biggest player in the sector after Barratt’s £2.5 billion deal to buy Redrow in 2024 – said it hopes to offset rising build inflation through cost cutting and its “excellent” supply chain relationships.

Barratt is trimming costs by £100 million over three years, with £50 million in savings this year and the final £30 million in 2026-27.

It added it can switch to cheaper timber frame construction methods to help keep costs down.

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Zusammenfassung (ca. 480 Wörter)

Dieser Artikel von Simply Wall St analysiert die sich entwickelnde Anlagehaltung gegenüber Barratt Redrow (LSE:BTRW), einem britischen Hausbauunternehmen. Der Kern des Artikels hebt Veränderungen in den Analysten-Kurszielen und begleitende Kommentare hervor, die auf eine Neubewertung der Wachstumsaussichten des Unternehmens und potenzieller Risiken basieren.

Kursziel-Anpassungen: Ursprünglich hatten mehrere Analysten optimistische Kursziele, die von £4,67 bis £4,70 reichten. Es gab jedoch Anpassungen. RBC Capital senkte seine Prognose auf £4,57, während Peel Hunt sie weiter auf £4,30 reduzierte. Dies spiegelt eine wachsende Vorsicht der Analysten hinsichtlich Annahmen über zukünftiges Wachstum und mögliche Umsetzungsschwierigkeiten wider.

Bullische und Bärische Perspektiven: Der Artikel identifiziert gegensätzliche Ansichten. Die "bullische" Sichtweise, die von RBC Capital signalisiert wird, deutet darauf hin, dass die aktuelle Bewertung bereits bekannte Risiken beinhaltet und Spielraum für positive Stimmungslage bietet, wenn Barratt Redrow seine Ziele erreicht. Die "bärische" Perspektive, die von Peel Hunt repräsentiert wird, betont erhöhte Risiken und engere Bewertungskriterien. Der Kursschnitt von RBC hebt Bedenken hinsichtlich des Wachstums und der Umsetzung hervor und deutet auf eine langsamere Wertrealisierung hin.

Wichtige Veränderungen und Neuigkeiten: Der Artikel weist auf mehrere kürzliche Entwicklungen hin, die Barratt Redrow beeinflussen:

• Neuer CEO-Name: Dean Banks soll im späten Jahr 2026 zum Group Chief Executive ernannt werden und bringt umfangreiche Führungserfahrung mit. David Thomas wird bis März 2027 bleiben, um einen reibungslosen Übergang zu gewährleisten.
• Dividendenanpassung: Das Unternehmen schlägt eine niedrigere Zwischendividende (5,0 Pence) im Vergleich zur vorherigen Periode (5,5 Pence) vor.
• Fair-Value-Revision: Der Faire Wert wurde von £4,67 auf £4,57 angepasst und beinhaltet konservativere Umsatz- und Gewinnmargenannahmen.
• Risikofaktoren: Zwei wichtige Risiken wurden identifiziert: die Komplexität der Integration aus der Fusion von Barratt und Redrow sowie mögliche Verzögerungen bei der Planung und Probleme im Zusammenhang mit der Bauvorschrift und Sanierungsmaßnahmen, die sich auf die Margen und den Cashflow auswirken könnten.

Simply Wall St's Narrative-Ansatz: Simply Wall St verwendet einen "Narrative"-Ansatz, um diese Informationen zu konsolidieren. Dieser Ansatz verbindet die Unternehmensgeschichte mit Analysten-Prognosen und einem Fair-Value-Rahmen, der ständig aktualisiert wird, wenn neue Daten verfügbar werden. Dies hilft Investoren zu verstehen, wie betriebliche Änderungen, Prognosen und Risiken miteinander in Verbindung stehen.

Haftungsausschluss: Der Artikel betont, dass seine Analyse auf historischen Daten und Analysten-Prognosen basiert. Es handelt sich nicht um Finanzberatung und stellt keine Empfehlung zum Kauf oder Verkauf von Aktien dar.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Here’s a summary of the text, followed by the German translation, within the 600-word limit:

Summary (approx. 580 words)

The UK mortgage market is facing increased pressure following the escalating conflict between the US and Israel and Iran. This has triggered a chain reaction, leading to significant rate hikes by major lenders. The Bank of England’s concerns about the conflict’s potential impact on mortgage payments for over a million households prompted them to maintain interest rates at 3.75%, but heightened anxieties surrounding economic fallout have spurred lenders to raise borrowing costs.

Rate Increases & Impact:

The average rate for two-year fixed mortgages jumped from 5.23% to 5.61% this week, while five-year fixed rates rose from 5.32% to 5.63%. This impacts a substantial portion of the UK mortgage market – approximately 5.2 million homeowners – who could see their repayments increase by the end of 2028. The Bank previously predicted 3.9 million, highlighting the severity of the shift.

Several key lenders responded to the rising pressures: HSBC, NatWest, and Nationwide increased their mortgage rates. Barclays maintained rates, while Halifax shifted its strategy, reducing rates on two-year deals and increasing them on five-year deals.

Lender Specific Actions:

• HSBC: Introduced 5% mortgages with a £999 fee, offering enhanced cashback incentives.
• NatWest: Raised rates on two and five-year deals, requiring at least a 40% deposit.
• Barclays: Launched 95% LTV mortgages for new-build properties, aiming to support first-time buyers.
• Nationwide: Increased rates for first-time buyers and expanded high LTI lending.
• Halifax: Maintained its commitment to lending, offering lower rates for two and five-year deals.
• Santander: Initially withdrew lower LTV products following interest rate changes, offering higher LTV options now at 85% or greater.

Broader Economic Context:

The Bank of England’s decision to hold rates reflects a deteriorating UK economic outlook, worsened by energy price increases and the global economic repercussions of the conflict. The number of available mortgage products has also decreased from 8,500 to 7,000.

Key Takeaways:

• The conflict between the US and Iran has dramatically increased mortgage rates in the UK.
• Millions of homeowners face potential repayment increases.
• Lenders are reacting to the heightened risk environment through increased rates and changes in product offerings.
• The overall economic climate and consumer confidence are significantly affected, adding to the challenges for borrowers.

---

German Translation (approx. 600 words)

Zusammenfassung (ca. 580 Wörter)

Der britische Hypothekenmarkt steht unter zunehmendem Druck im Zuge des Eskalationskonflikts zwischen den USA und Israel sowie Iran. Dies hat eine Kettenreaktion ausgelöst und zu erheblichen Zinserhöhungen durch große Kreditgeber geführt. Die Sorgen der Bank of England hinsichtlich der potenziellen Auswirkungen des Konflikts auf Hypothekenzahlungen für mehr als eine Million Haushalte führten dazu, dass sie die Zinssätze bei 3,75 % beibehielten, aber die Besorgnis hinsichtlich der wirtschaftlichen Folgen hat die Kreditgeber dazu veranlasst, die Kreditkosten zu erhöhen.

Zinserhöhungen & Auswirkungen:

Der durchschnittliche Zinssatz für variable Hypotheken auf zwei Jahre ist von 5,23 % auf 5,61 % gestiegen, während die Zinssätze für fünf Jahre von 5,32 % auf 5,63 % angehoben wurden. Dies betrifft einen erheblichen Teil des britischen Hypothekenmarktes – etwa 5,2 Millionen Hausbesitzer –, die ihre Zahlungen bis Ende 2028 möglicherweise erhöhen werden. Die Bank hatte zuvor 3,9 Millionen vorhergesagt, was die Schwere der Verschiebung hervorhebt.

Reaktionen der Kreditgeber:

• HSBC: Hatte 5% Hypotheken mit einer Gebühr von 999 £ eingeführt und bot verstärkte Cashback-Anreize.
• NatWest: Hatte die Zinssätze für zwei und fünf Jahre angehoben, wobei mindestens eine 40%ige Eigenkapitalbeteiligung erforderlich war.
• Barclays: Hatte Hypotheken mit einer LTV von 95% für Neubauten aufgelegt, um Erstkäufern zu helfen.
• Nationwide: Hatte die Zinssätze für Erstkäufer erhöht und das Angebot an hohen LTI-Krediten erweitert.
• Halifax: Hatte sein Engagement für Kredite beibehalten und niedrigere Zinssätze für zwei und fünf Jahre angeboten.
• Santander: Hatte ursprünglich niedrigere LTV-Produkte nach Änderungen der Zinssätze zurückgezogen, bietet nun höhere LTV-Optionen von 85% oder mehr an.

Allgemeiner wirtschaftlicher Kontext:

Die Entscheidung der Bank of England, die Zinssätze beizubehalten, spiegelt eine sich verschlechternde Wirtschaftslage im Vereinigten Königreich wider, die durch Energiepreise und die globalen wirtschaftlichen Folgen des Konflikts verschärft wird. Die Anzahl der verfügbaren Hypothekenprodukte hat sich ebenfalls von 8.500 auf 7.000 verringert.

Wesentliche Erkenntnisse:

• Der Konflikt zwischen den USA und Iran hat die Hypothekenzinsen im Vereinigten Königreich dramatisch erhöht.
• Millionen von Hausbesitzern stehen vor potenziellen Erhöhungen ihrer Zahlungen.
• Kreditgeber reagieren auf die erhöhte Risikolage durch höhere Zinssätze und Änderungen bei ihren Produktangeboten.
• Die allgemeine Wirtschaftslage und das Verbrauchervertrauen sind erheblich betroffen, was die Herausforderungen für Kreditnehmer verstärkt.

---

Would you like me to translate any specific sections or focus on a particular aspect of the text?

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Sub-4% mortgage deals have vanished from the UK market after most major lenders raised borrowing costs, as a fresh wave of rate increases sweeps through the sector following market jitters over the inflationary impact of the war in the Middle East.

The average rate for a two-year fixed mortgage came in at 5.23% this week, higher than last week's 4.99%, according to data from Uswitch.

The average five-year fixed deal came in at 5.32%, up from 5.05% previously. These are the average rates across all lenders for a 75% loan-to-value (LTV) mortgage, meaning buyers need a down payment of at least 25% of the purchase price.

The last two-year fixed-rate deals priced below 4% disappeared from the market this week, as lenders lifted mortgage interest rates across the board, pushing average rates back to levels last seen in March 2025.

The increases come amid continued disruption to seaborne trade stemming from the Iran war, a surge in oil prices, warnings over inflation from the Bank of England and rising gilt yields.

The Bank of England (BoE) voted unanimously to keep interest rates on hold in the face of the Iran war this month. Before the outbreak of war in the Middle East, expectations had been that the rate would be cut to 3.5%, but the conflict has triggered a global economic fallout, ending hopes of falling interest rates this year.

Read more: Bank of England holds interest rates at 3.75% amid Iran conflict

Alice Haine, personal finance expert at Bestinvest, said: “For homeowners, the resurgence of sharply rising mortgage rates will be deeply worrying. Average fixed mortgage rates have jumped back above 5% since the conflict began as expectations for the future path of interest rates deteriorate."

"First-time buyers and those refinancing now face higher borrowing costs and fewer options as sub-4% deals available only a few weeks ago disappear from the market."

Haine said that the urgency had returned as borrowers scrambled to secure the most competitive deal available while they can.

"Perhaps the most disappointed group will be homeowners with large mortgages coming off ultra-low fixed rates secured before the central bank began tightening in December 2021," she said. "Many five-year deals struck in 2021 - when rates were at record lows - are now expiring, so household budgets must now adjust to accommodate significantly higher repayments."

She suggested that anyone looking to buy now or remortgage in the next six months would be wise to secure the best deal they could find. "If the situation de-escalates and better rates emerge, borrowers typically have the option to switch to a cheaper product up until two weeks before their new mortgage term starts," she said.

Story Continues

Banks and building societies have taken nearly 1,000 mortgages off the market in the three weeks since the Middle East conflict began, according to Moneyfacts.

This week, HSBC (HSBA.L), Barclays (BARC.L), Nationwide and Halifax all increased mortgage costs. NatWest (NWG.L) was the only major lender to keep its rates unchanged.

Here is more detail on major lenders’ mortgage rates this week:

HSBC mortgage deals

HSBC (HSBA.L) has a 4.57% rate on a two-year deal, with a £999 booking fee, higher than last week's 4.09%. For those with a premier standard account with the lender, this rate is 4.54%.

Looking at the five-year options, the fixed standard rate is 4.68% with a £999 fee, which is more than the previous 4.28%.

Both cases assume a 60% LTV mortgage, meaning buyers need a deposit of at least 40%.

HSBC (HSBA.L) offers 95% LTV deals, so you only need to save for a 5% deposit. However, the rates are much higher, with a two-year fix at 4.49% or a five-year fix at 5.42%.

This is because someone's financial situation and deposit size determine the rate. The larger the deposit, the lower the LTV, allowing buyers to access better deals because lenders consider them less risky.

Read more: UK inflation held at 3% ahead of Iran war

The lender has recently unveiled a cashback offer of up to £2,000 to ease the upfront costs of entering the housing market.

The bank’s enhanced incentive package, which brokers say could ignite a fresh round of competitive pricing among high-street lenders, marks one of the most generous cashback schemes currently available. The measure is aimed at supporting borrowers struggling with deposit and moving costs at a time when affordability pressures remain high despite a recent easing in mortgage rates.

NatWest mortgage deals

NatWest's (NWG.L) two-year deal comes in at 4.04%, with a £1,495 product fee, unchanged from the previous week.

The cheapest five-year fixed deal is 4.49%, which also unchanged. In both cases, you'll need a deposit of at least 40% to qualify for the rates.

Barclays mortgage deals

Barclays (BARC.L) has a two-year fix available at 4.60% with a £899 product fee, higher than last week's 4.25%. Its five-year deal also increased from 4.55% to 4.80%. This is the second straight week that the lender has increased borrowing costs.

Barclays (BARC.L) launched 95% loan-to-value (LTV) mortgages for purchasers of new-build houses, in a move aimed at easing the path to home ownership, especially for first-time buyers.

The offer applies to new-build houses with a maximum purchase price of £600,000. Previously, buyers were required to pay a 10% deposit, meaning a £60,000 deposit on a £600,000 property. Under the new criteria, that requirement could be halved to £30,000.

Earlier in the year, Barclays (BARC.L) launched a mortgage proposition to help new and existing customers access larger loans when purchasing a home.

Read more: Best credit card deals of the week

The initiative, known as Mortgage Boost, enables family members or friends to effectively "boost" the amount that can be borrowed toward a property without needing to lend or gift money directly or provide a larger deposit.

Under the scheme, a borrower’s eligibility for a mortgage can increase significantly by including a family member or friend on the application. For example, Barclays (BARC.L) stated that an individual with a £37,500 annual income and a £30,000 deposit could borrow up to £168,375, meaning the most they could afford would be a home worth £207,375.

However, with Mortgage Boost, the total borrowing potential can increase if a second person, such as a parent, is added to the application. In this case, if the second applicant also earns £37,500 a year, the combined income could push the borrowing limit to £270,000, enabling the buyer to afford a home worth up to £300,000.

Nationwide mortgage deals

Nationwide (NBS.L) has increased its two-year deal for first-time buyers from 4.45% to 4.75% this week. For a five-year deal, the rate rose from 4.70% to 5%. Both deals require a 40% deposit and come with a £999 upfront fee.

This is also the second straight week that the lender has increased borrowing costs.

First-time buyers also receive £500 cashback when they complete their mortgage with Nationwide (NBS.L).

The lender this week announced an expansion of its high loan-to-income (LTI) lending, a change that could see some borrowers access tens of thousands of pounds more than previously available.

Under the new terms, home movers and customers remortgaging will now be able to borrow up to six times their annual income. This enhanced offering extends to both new and existing customers moving home or remortgaging, and applies to loans with a loan-to-value (LTV) up to 95%.

Read more: How to protect yourself against tax traps

To qualify for this increased borrowing, sole applicants must demonstrate a minimum annual income of £75,000, while joint applicants must demonstrate a minimum yearly income of £100,000. These income thresholds remain consistent with previous requirements, which allowed eligible groups to borrow up to 5.5 times their income.

The changes mean that, for example, a sole applicant who was a new customer moving home or remortgaging, with an income of £75,000, may previously have been able to borrow up to £412,500 from Nationwide (NBS.L). But now they could potentially borrow up to £450,000 - an increase of £37,500.

Nationwide (NBS.L) has also become the first lender to allow a mortgage deed to be signed electronically and without the need for a witness in a “significant step” for the market.

Anyone purchasing a property or looking to remortgage with Nationwide (NBS.L) will be able to sign their mortgage deed electronically if their solicitor is set up to use a Qualified Electronic Signature.

Halifax mortgage deals

Halifax, the UK’s largest mortgage lender, offers a two-year fix at 4.91% (also 60% LTV), which is higher than the previous 4.31%.

The lender, owned by Lloyds (LLOY.L), also offers a five-year rate of 4.90%, a jump from last week's 4.30%. This makes Halifax the only lender on our list offering a cheaper 5-year fix than a 2-year deal.

It has a 10-year deal with a mortgage rate of 4.93%.

This is the third lender on our list to increase borrowing costs for a second week running.

Santander mortgage deals

Santander (BNC.L) withdrew its 60% LTV mortgage products for first-time buyers on borrowing of less than £250,000 on two- and five-year terms last September.

A spokesperson for the bank said that the "change was part of a reprice following the changes to swaps after the Bank of England held interest rates".

Santander (BNC.L) continues to offer products with LTVs of 85% or above for first-time buyers, with the cheapest two-year fix at 4.68% and the cheapest five-year fix at 4.76%.

For home movers with a 40% deposit, Santander (BNC.L) is offering a two-year fixed rate of 4.43%, higher than the previous 4.13% and a five-year deal of 4.51%, a hike from the previous 4.21% deal.

The lender has launched a mortgage that lets first-time buyers borrow up to 98% of the property’s value.

The deal does require a minimum £10,000 deposit, though, so borrowers would need to be purchasing a home for £500,000 to have put down a deposit as low as 2%.

Read more: How to get a mortgage after divorce

Santander UK (BNC.L) said its “my first mortgage” deal has a fixed rate of 5.19% over five years and has no product fee.

The product, with up to 98% loan-to-value (LTV), is available for maximum lending of up to £500,000, repayable over a term of 5-40 years.

The deal is not available to self-employed applicants and covers only applicants living in Britain, with Northern Ireland excluded, Santander (BNC.L) said.

It is available for a minimum of £190,001 being borrowed, and £250 cashback is payable on completion.

Lending above 95% and up to 98% is available on existing houses only, Santander (BNC.L) said.

All lending also remains subject to Santander’s (BNC.L) broader affordability checks, including a maximum loan-to-income multiple of 4.45 times salary.

Cheapest mortgage deal on the market

NatWest (NWG.L) offers the most competitive two-year deal on the market for first-time buyers, with a fixed rate of 4.04%. When it comes to a five-year fixed deal, NatWest takes the crown again, with its 4.49% offer. However, any of these deals require a hefty 40% deposit.

With the average UK house price at £273,176 in February, prospective homebuyers would need a deposit of around £109,000 to secure the cheapest rates.

A growing number of homeowners in the UK are opting for mortgage terms of 35 years or longer, with a significant rise in older borrowers stretching their repayment periods well into their 70s.

Skipton Building Society is allowing first-time buyers to borrow up to 5.5 times their income, helping more borrowers get on the housing ladder.

Leeds Building Society reduced the minimum household income requirement on its first-time-buyer mortgage range. This means single or joint first-time buyer applicants with a household income of £30,000 may now be able to borrow up to 5.5 times their earnings.

Read more: Multiple Bank of England interest rate rises expected after energy price surge

Another lender has launched a 0% deposit mortgage aimed at renters as competition in the niche gathers pace. Melton Building Society is the latest provider to introduce such a product. The mutual is offering a five-year fixed rate mortgage at 5.99%, with a £199 application fee and £199 cashback on completion.

Under a no-deposit arrangement, also known as a 100% loan-to-value mortgage, the lender finances the entire purchase price of the home.

The deal is initially available to borrowers living in the East Midlands, with a broader rollout planned later this year.

Meanwhile, Newcastle Building Society offers a First Step mortgage deal, where buyers only need to put down 2% of the house price.

Mortgage holders and borrowers have faced higher repayments in recent years, as the BoE's higher base rate has been passed on by banks and building societies.

Many homeowners will hope the BoE continues to cut interest rates. At the same time, savers will likely root for rates to remain at or near their current levels.

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Barratt Redrow’s fair value estimate has been trimmed slightly from £4.71 to about £4.67, with recent Street targets clustering closer to £4.30. That shift in targets sits alongside a move in the recommendation tone from Buy to Add, as analysts reassess how much room there is for upside while keeping their core assumptions largely intact. Read on to see what this evolving narrative could mean for how you track the shares from here.

Stay updated as the Fair Value for Barratt Redrow shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Barratt Redrow.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

Peel Hunt’s shift to an Add stance, with a revised target of £4.30, still sits above recent trading levels for many investors. This points to residual confidence in Barratt Redrow’s underlying story even after some tempering of expectations. Both Peel Hunt and RBC Capital continue to publish formal targets. This signals that the name remains firmly on research radars and that analysts see enough visibility to keep valuation work in play rather than stepping to the sidelines.

🐻 Bearish Takeaways

Peel Hunt’s move from Buy to Add, alongside its price target change from £4.70 to £4.30, suggests a more cautious stance on near term upside, with less headroom versus current fair value assessments. The recent target trims from Peel Hunt and RBC Capital point to more conservative assumptions around execution and growth potential. This may encourage you to be more selective on entry points and position sizing.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!LSE:BTRW 1-Year Stock Price Chart

We've flagged 2 risks for Barratt Redrow. See which could impact your investment.

What's in the News

Barratt Redrow plc appointed Dean Banks as its next Group Chief Executive, with plans for him to join in the final quarter of 2026 after his role at Ventia Pty Limited, and to succeed retiring CEO David Thomas. The Board highlighted Dean Banks’s more than 15 years of senior executive experience at listed global businesses, including Ventia, Balfour Beatty plc and De La Rue Ltd, as a key reason for his selection. David Thomas will continue as Group Chief Executive and Board member until late 2026, and will then remain with Barratt Redrow until March 2027 to support the handover. Barratt Redrow plc proposed an interim dividend of 5.0 pence per share, with payment scheduled for 15 May 2026 to shareholders on the register on 7 April 2026.

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How This Changes the Fair Value For Barratt Redrow

Fair value has moved slightly from £4.71 to about £4.67, with recent targets around £4.30. Revenue growth expectations are effectively unchanged at about 6.84%. Net profit margin is now assumed at roughly 7.70%, compared with about 7.66% before. Future P/E has shifted from about 15.22x to 15.00x. The discount rate has adjusted slightly from roughly 8.85% to 8.82%.

Never Miss an Update: Follow The Narrative

Narratives link a company's real world story to a financial forecast and fair value, so you can see how news and fundamentals connect. They refresh as new data, broker research and company updates come through.

Head over to the Simply Wall St Community and follow the Narrative on Barratt Redrow to stay up to date on:

How the Barratt and Redrow merger, including upgraded cost synergies from £90m to £100m, is expected to feed through to margins and operational efficiency. What higher capacity to buy larger sites, a growing land bank and firm reservation trends could mean for future home completions and revenue. Key risks from integration complexity, planning delays, safety and remediation obligations and the potential building safety levy that could pressure margins and cash flow.

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 BTRW.L.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Mortgages under 4% have all but disappeared after most major lenders raised borrowing costs as the property market braces for a year of rising interest rates and inflation.

The average rate for a two-year fixed mortgage came in at 4.99% this week, higher than last week's 4.79%, according to data from Uswitch.

The average five-year fixed deal came in at 5.05%, up from 4.94% previously. These are the average rates across all lenders for a 75% loan-to-value (LTV) mortgage, meaning buyers need a down payment of at least 25% of the purchase price.

The Bank of England (BoE) left interest rates on hold at 3.75% in February and is expected to keep them steady when it announces its policy decision later today. Conflict in the Middle East has triggered a global economic fallout, ending hopes of falling interest rates this year.

Before the outbreak of war in the Middle East, expectations had been that the rate would be cut to 3.5%.

Financial information website Moneyfacts said major lenders no longer offer sub-4% fixed-rate deals, which were available to borrowers only last week. Across the mortgage market, there were 689 fewer products on Tuesday than on 9 March.

This week, NatWest (NWG.L), Barclays (BARC.L), Nationwide and Halifax all increased mortgage costs. HSBC (HSBA.L) was the only major lender to keep its rates unchanged.

Lenders have been raising rates over the past fortnight amid fears that disruption to oil (BZ=F, CL=F) and gas (NG=F) supply through the Strait of Hormuz could drive higher inflation and force the Bank of England to keep the base rate at 3.75% or even raise it.

Sam Kirtikar, chief executive of The Mortgage Broker Group, said: “In the run-up to today’s Bank of England decision, we have seen a clear rise in clients wanting to review their options early and lock in a rate rather than wait and hope."

"The mortgage rate volatility represents the volatility that everyone felt around the world, with there suddenly being a lot of uncertainty in the mortgage market, and that has absolutely made our clients much more cautious about leaving things too late and waiting."

“We have seen plenty of rate switches in recent weeks, with many borrowers keen to secure something now in case lenders reprice again or withdraw deals at short notice. Even if the BoE holds, that does not automatically mean mortgage pricing will suddenly drop again as lenders are still responding to wider market conditions and funding costs.”

Here is more detail on major lenders’ mortgage rates this week:

HSBC mortgage deals

HSBC (HSBA.L) has a 4.09% rate on a two-year deal, with a £999 booking fee, unchanged from last week. For those with a premier standard account with the lender, this rate is 4.06%.

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Looking at the five-year options, the fixed standard rate is 4.28% with a £999 fee, which is also unchanged.

Both cases assume a 60% LTV mortgage, meaning buyers need a deposit of at least 40%.

HSBC (HSBA.L) offers 95% LTV deals, so you only need to save for a 5% deposit. However, the rates are much higher, with a two-year fix at 4.19% or a five-year fix at 5.22%.

This is because someone's financial situation and deposit size determine the rate. The larger the deposit, the lower the LTV, allowing buyers to access better deals because lenders consider them less risky.

Read more: Energy price surge derails expectations for Bank of England interest rate cuts

The lender has recently unveiled a cashback offer of up to £2,000 to ease the upfront costs of entering the housing market.

The bank’s enhanced incentive package, which brokers say could ignite a fresh round of competitive pricing among high-street lenders, marks one of the most generous cashback schemes currently available. The measure is aimed at supporting borrowers struggling with deposit and moving costs at a time when affordability pressures remain high despite a recent easing in mortgage rates.

NatWest mortgage deals

NatWest's (NWG.L) two-year deal comes in at 4.04%, with a £1,495 product fee, higher than the previous 3.72%.

The cheapest five-year fixed deal is 4.49%, which also more than last week's 3.89%. In both cases, you'll need a deposit of at least 40% to qualify for the rates.

Barclays mortgage deals

Barclays (BARC.L) has a two-year fix available at 4.25% with a £899 product fee, higher than last week's 3.80%. Its five-year deal also increased from 4.10% to 4.55%.

Barclays (BARC.L) launched 95% loan-to-value (LTV) mortgages for purchasers of new-build houses, in a move aimed at easing the path to home ownership, especially for first-time buyers.

The offer applies to new-build houses with a maximum purchase price of £600,000. Previously, buyers were required to pay a 10% deposit, meaning a £60,000 deposit on a £600,000 property. Under the new criteria, that requirement could be halved to £30,000.

Earlier in the year, Barclays (BARC.L) launched a mortgage proposition to help new and existing customers access larger loans when purchasing a home.

Read more: Best credit card deals of the week

The initiative, known as Mortgage Boost, enables family members or friends to effectively "boost" the amount that can be borrowed toward a property without needing to lend or gift money directly or provide a larger deposit.

Under the scheme, a borrower’s eligibility for a mortgage can increase significantly by including a family member or friend on the application. For example, Barclays (BARC.L) stated that an individual with a £37,500 annual income and a £30,000 deposit could borrow up to £168,375, meaning the most they could afford would be a home worth £207,375.

However, with Mortgage Boost, the total borrowing potential can increase if a second person, such as a parent, is added to the application. In this case, if the second applicant also earns £37,500 a year, the combined income could push the borrowing limit to £270,000, enabling the buyer to afford a home worth up to £300,000.

Nationwide mortgage deals

Nationwide (NBS.L) has increased its two-year deal for first-time buyers from 3.92% to 4.45% this week. For a five-year deal, the rate rose from 4.31% to 4.70%. Both deals require a 40% deposit and come with a £999 upfront fee.

First-time buyers also receive £500 cashback when they complete their mortgage with Nationwide (NBS.L).

The lender this week announced an expansion of its high loan-to-income (LTI) lending, a change that could see some borrowers access tens of thousands of pounds more than previously available.

Under the new terms, home movers and customers remortgaging will now be able to borrow up to six times their annual income. This enhanced offering extends to both new and existing customers moving home or remortgaging, and applies to loans with a loan-to-value (LTV) up to 95%.

To qualify for this increased borrowing, sole applicants must demonstrate a minimum annual income of £75,000, while joint applicants must demonstrate a minimum yearly income of £100,000. These income thresholds remain consistent with previous requirements, which allowed eligible groups to borrow up to 5.5 times their income.

The changes mean that, for example, a sole applicant who was a new customer moving home or remortgaging, with an income of £75,000, may previously have been able to borrow up to £412,500 from Nationwide (NBS.L). But now they could potentially borrow up to £450,000 - an increase of £37,500.

Nationwide (NBS.L) has also become the first lender to allow a mortgage deed to be signed electronically and without the need for a witness in a “significant step” for the market.

Anyone purchasing a property or looking to remortgage with Nationwide (NBS.L) will be able to sign their mortgage deed electronically if their solicitor is set up to use a Qualified Electronic Signature.

Halifax mortgage deals

Halifax, the UK’s largest mortgage lender, offers a two-year fix at 4.31% (also 60% LTV), which is higher than the previous 4.16%.

The lender, owned by Lloyds (LLOY.L), also offers a five-year rate of 4.30%, a jump from last week's 4.15%. This makes Halifax the only lender on our list offering a cheaper 5-year fix than a 2-year deal.

It has a 10-year deal with a mortgage rate of 4.93%.

Santander mortgage deals

Santander (BNC.L) withdrew its 60% LTV mortgage products for first-time buyers on borrowing of less than £250,000 on two- and five-year terms last September.

A spokesperson for the bank said that the "change was part of a reprice following the changes to swaps after the Bank of England held interest rates".

Santander (BNC.L) continues to offer products with LTVs of 85% or above for first-time buyers, with the cheapest two-year fix at 4.38% and the cheapest five-year fix at 4.46%.

For home movers with a 40% deposit, Santander (BNC.L) is offering a two-year fixed rate of 4.13%, higher than the previous 3.51% and a five-year deal of 4.21%, a hike from the previous 3.80% deal.

The lender has launched a mortgage that lets first-time buyers borrow up to 98% of the property’s value.

The deal does require a minimum £10,000 deposit, though, so borrowers would need to be purchasing a home for £500,000 to have put down a deposit as low as 2%.

Read more: How to get a mortgage after divorce

Santander UK (BNC.L) said its “my first mortgage” deal has a fixed rate of 5.19% over five years and has no product fee.

The product, with up to 98% loan-to-value (LTV), is available for maximum lending of up to £500,000, repayable over a term of 5-40 years.

The deal is not available to self-employed applicants and covers only applicants living in Britain, with Northern Ireland excluded, Santander (BNC.L) said.

It is available for a minimum of £190,001 being borrowed, and £250 cashback is payable on completion.

Lending above 95% and up to 98% is available on existing houses only, Santander (BNC.L) said.

All lending also remains subject to Santander’s (BNC.L) broader affordability checks, including a maximum loan-to-income multiple of 4.45 times salary.

Cheapest mortgage deal on the market

NatWest (NWG.L) offers the most competitive two-year deal on the market for first-time buyers, with a fixed rate of 4.04%. When it comes to a five-year fixed deal, HSBC (HSBA.L) takes the crown, with its 4.28% offer. However, any of these deals require a hefty 40% deposit.

With the average UK house price at £273,176 in February, prospective homebuyers would need a deposit of around £109,000 to secure the cheapest rates.

A growing number of homeowners in the UK are opting for mortgage terms of 35 years or longer, with a significant rise in older borrowers stretching their repayment periods well into their 70s.

Skipton Building Society is allowing first-time buyers to borrow up to 5.5 times their income, helping more borrowers get on the housing ladder.

Leeds Building Society reduced the minimum household income requirement on its first-time-buyer mortgage range. This means single or joint first-time buyer applicants with a household income of £30,000 may now be able to borrow up to 5.5 times their earnings.

Another lender has launched a 0% deposit mortgage aimed at renters as competition in the niche gathers pace. Melton Building Society is the latest provider to introduce such a product. The mutual is offering a five-year fixed rate mortgage at 5.99%, with a £199 application fee and £199 cashback on completion.

Under a no-deposit arrangement, also known as a 100% loan-to-value mortgage, the lender finances the entire purchase price of the home.

The deal is initially available to borrowers living in the East Midlands, with a broader rollout planned later this year.

Meanwhile, Newcastle Building Society offers a First Step mortgage deal, where buyers only need to put down 2% of the house price.

Mortgage holders and borrowers have faced higher repayments in recent years, as the BoE's higher base rate has been passed on by banks and building societies.

Many homeowners will hope the BoE continues to cut interest rates. At the same time, savers will likely root for rates to remain at or near their current levels.

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