Housebuilder Barratt has set aside £192m to fix building safety defects affecting legacy properties in its portfolio: £12.8m more than in the previous financial year.
The costs include £62m to increase the fire safety and external wall systems contingency in those developments, as well as remediation costs for “atypical buildings” within Barratt’s portfolio.
The remaining £130m relates to buildings previously identified as potentially requiring remediation work. This includes the remediation of issues with the reinforced concrete frames in two London developments.
In 2019, the Citiscape development in Croydon, south London, had aluminium composite material (ACM) cladding removed, which revealed structural problems in its concrete frame.
The provisions were announced in the housebuilder’s trading update for the year ended 30 June 2024.
“Remaining building safety provisions are in line with our previous expectations,” said the update.
Merger with Redrow
Barratt is expecting a decision from the Competition and Markets Authority (CMA) on its £2.5bn merger with Redrow in early August. Shareholders of both companies approved the move in May.
The company is spending £23m on the merger operation.
Barratt’s chief executive, David Thomas, said: "Whilst we continue to navigate a challenging macroeconomic backdrop, we are delivering industry-leading build quality, sustainability and customer service. Combined with the strength of our balance sheet, this has ensured we remain resilient and responsive through the cycle.
“Looking ahead, we are pleased that the proposed combination with Redrow was strongly supported by both sets of shareholders in the spring and, subject to the CMA’s approval, we look forward to bringing together two businesses to create an exceptional UK housebuilder ensuring we are well-positioned for the future.”
