Should I buy Barratt Redrow stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Barratt Redrow for over three years. Every month, over a million users in the UK trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Barratt Redrow.

What is Barratt Redrow?

What is the Barratt Redrow stock price?

The price of Barratt Redrow stock is rising this week. The current share price stands at 434.80p, reflecting a 24-hour increase of 2.30p (+0.53%) and a robust weekly gain of 6.79%. Barratt Redrow now boasts a market capitalisation of £6.20 billion and an average 3-month trading volume of 4.83 million shares. With a P/E ratio of 15.28, a dividend yield of 3.72%, and a beta of 1.46, the stock demonstrates healthy investor interest, income potential, and moderate volatility, making it an attractive option for those seeking growth and resilience in the UK market.

Our full analysis of the Barratt Redrow stock

Having reviewed Barratt Redrow’s latest financial results and tracking its stock performance over the past three years, we have leveraged a blend of proprietary algorithms and multiple sources—including financial ratios, technical signals, and peer comparisons— to deliver this in-depth analysis. The integration of recent market data and sector insights enables us to distil what truly shapes the current opportunity. So, why might Barratt Redrow stock once again become a strategic entry point into the UK residential construction sector in 2025?

Recent performance and market context

Barratt Redrow, currently trading at 434.80p per share, has demonstrated thrilling resilience over recent quarters. Over the last week, its price gained 6.79% while showing stable momentum over six months and posting a 9.5% rise over the past twelve months. This bullish activity is all the more impressive against the backdrop of macroeconomic headwinds and sector consolidation. The completion of the Barratt and Redrow merger in October 2024 has positioned the company as the undisputed leader in the UK’s housebuilding industry, fortifying its competitive stance. UK housing demand remains robust, underpinned by demographic trends and supportive government policies, adding to the sector’s attractiveness for both institutional and retail investors. Recent share buybacks worth £50 million (June 2025) further evidence management’s confidence and commitment to elevating shareholder value.

Technical analysis

Technical indicators underscore renewed optimism for Barratt Redrow. While the RSI stands at a relatively low 36.16—typically seen as a short-term oversold signal—the recent upward momentum suggests that a bullish reversal may be on the horizon. MACD also remains in negative territory but is stabilising, indicating possible short-term consolidation before a larger move. All major moving averages (20, 50, 100, and 200 days) are still above the current level, suggesting ideal entry opportunities for patient investors. Notably, strong support has formed around 431.66p, with technical resistance at 438.43p; a decisive breakout above this threshold could validate the next bullish phase. Such configurations frequently signal the emergence of a value zone, where attractive upside potential meets controlled downside risk. Overall, the medium-term technical structure encourages a positive approach.

Fundamental analysis

On a fundamental level, Barratt Redrow is delivering strong year-on-year revenue growth, with sales reaching £4.60 billion in the latest trailing twelve months—a quarterly increase of 23.2%. Net profit is solid at £120.6 million, and although margin pressures have been noted due to sectoral cost inflation (profit margin at 2.62%), the trajectory remains robust. The company now boasts the largest market capitalisation (£6.20 billion) among UK housebuilders and is attractively valued, with a P/E ratio at 15.28. This multiple places Barratt Redrow at a discount to future earnings potential, especially given an analyst consensus anticipating over 30% upside from its current price. Structural strengths—such as a portfolio comprising leading brands (Barratt Homes, David Wilson Homes, and Redrow), a dominant share in UK residential construction, and an unwavering focus on quality—serve to reinforce its fundamental appeal. Notably, the company invests heavily in innovation and new building technologies, enhancing execution efficiency and environmental credentials in a rapidly evolving landscape.

Volume and liquidity

Trading volumes are consistently high, averaging 4.83 million shares daily over the last three months. This liquidity not only assures nimble entry and exit for both institutional and retail investors, but also reflects market confidence in the underlying story. A substantial free float and strong institutional presence (73.6% of shares held by institutions) foster a dynamic valuation environment, as even moderate increases in demand can sharply influence price movement. Coupled with continued share buybacks and prudent capital management, this underpins the market's long-term endorsement of Barratt Redrow’s strategy.

Catalysts and positive outlook

Several catalytic factors position Barratt Redrow for renewed upward momentum. The October 2024 merger unlocks estimated cost synergies poised to drive margin expansion and operational efficiencies over the next 18 months. Strategic land acquisitions, advanced pre-sales, and an expanded construction pipeline underline management’s ability to capture sector growth. Analysts forecast annual profit growth exceeding 32% and revenue growth above 15%—forecasts rarely seen among FTSE-listed housebuilders. Commitment to sustainability and integration of modern building technologies further align Barratt Redrow with ESG-oriented capital, a key determinant of future index inclusions and portfolio allocations. Positive industry sentiment, supported by government incentives for residential construction and a chronically undersupplied housing market, adds to the compelling risk/reward equation.

Investment strategies

Investors seeking short-term opportunities may find the confluence of low RSI, defined technical support, and imminent resistance-breakout setups ideal for capture ahead of near-term catalysts such as interim results or new order announcements. For those with a medium-term horizon, the stock’s undervalued P/E, robust liquidity, and anticipated merger synergies present a compelling argument for position building as the group capitalises on operational improvements. Long-term investors are encouraged by Barratt Redrow’s enduring sector leadership, innovation-driven margin growth, and the enduring strength of UK housing demand. Entering at or near current levels, particularly ahead of key financial releases or sector re-ratings, appears favourable for a broad range of strategies.

Is it the right time to buy Barratt Redrow?

Barratt Redrow’s unique combination of robust financials, sector leadership, and multiple growth catalysts seems to represent an excellent opportunity for discerning investors focused on the UK market. The group’s strategic vision, historical outperformance, and commitment to rewarding shareholders create a resilient platform for sustained stock appreciation. With a proven ability to innovate, capitalise on merger benefits, and maintain a strong market position against an encouraging sector backdrop, Barratt Redrow may be entering a new bullish phase.

In conclusion, the fundamentals and technical indicators collectively justify renewed interest, making a strong case for Barratt Redrow as a high-conviction holding in the evolving UK residential construction landscape. For investors who value growth, scale, and resilience, Barratt Redrow offers a timely opportunity to participate in the next bullish cycle of an industry leader.

How to buy Barratt Redrow stock in the UK?

Buying Barratt Redrow stock online is simple and secure when you go through a regulated UK broker. Investors can choose between two main methods: buying shares outright for long-term ownership, or trading Contracts for Difference (CFDs) for more flexible, short-term speculation with leverage. Both approaches are accessible to UK residents through leading platforms, offering transparency, protection, and competitive fees. The detailed broker comparison to help you find the right provider can be found further down this page.

Spot buying

When you buy Barratt Redrow shares for cash, you own the shares directly in your account. This method typically involves a fixed commission per transaction, usually around £5–£8 with major UK brokers. You benefit from any dividends and have full shareholder rights.

Gain scenario

For example, if the Barratt Redrow share price is 434.80p (about £4.35), you can buy around 23 shares with a £100 stake, including a brokerage fee of around £5.

If the share price rises by 10%, your shares are now worth £110.

Result: +£10 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading lets you speculate on Barratt Redrow's share price without owning the underlying shares. CFDs involve costs such as the spread (difference between buy/sell prices) and overnight financing fees if you hold positions open for more than a day. CFDs allow leverage, amplifying both profits and losses, making them popular with more active investors.

Example of a CFD Gain with Leverage

For example, you open a CFD position on Barratt Redrow shares with 5x leverage and a £1,000 stake.

This gives you a market exposure of £5,000.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +£400 gain, on a stake of £1,000 (excluding fees).

Final advice

Before investing, it's important to compare brokers’ fees, features, and conditions carefully. The best way to buy Barratt Redrow shares depends on your investment objectives and risk appetite, with our broker comparison tool just below to help you make the right choice.

Our 7 tips for buying Barratt Redrow stock

The latest news about Barratt Redrow

Barratt Redrow shares have gained 6.79% over the last week on positive sector sentiment. This notable advance reflects renewed investor confidence in the UK housebuilding sector, supported by stable demand and optimism following the company’s recent merger, which underpins its leadership in the domestic market.

The successful completion of the Barratt and Redrow merger has created the UK’s largest homebuilder. This structural change, finalised just months ago, is expected to drive significant operational efficiencies and strategic synergies, positioning Barratt Redrow as a dominant force in the British residential construction market.

Management reported strong quarterly revenue growth above 23%, outpacing sector averages year-on-year. The recent financial update highlights robust sales performance, despite market challenges, with new housing developments and brand integration contributing to the group’s sustained revenue expansion.

The group’s shares remain eligible for ISAs and SIPPs, maintaining appeal for UK-based investors. This eligibility not only simplifies tax-efficient investment for residents but also strengthens the relevance of Barratt Redrow stock within locally diversified long-term UK portfolios.

Dividend yield holds steady at 3.72%, providing attractive income at current price levels. This stable payout, along with ongoing profitability and a strong capital base, continues to support the stock’s reputation as a solid income-generating option for those seeking exposure to the UK real estate sector.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.