14 INDUSTRY NEWS


Barratt Redrow merger is response to challenging market


Barratt Developments plc has acquired Redrow plc for £2.5bn to create a new fi rm  Barratt edrow  following a series of challenges faced by both companies in the housing market, including drops in completions and revenue during the latter part of 2023. The new fi rm is targeted to construct approximately 23,000 homes per year, with an associated turnover of £7bn. The deal represents a combined market value of 7.2bn and received unanimous support from both companies’ boards and key stakeholders, reportedly including edrows founder, Steve Morgan, who holds a 1 stake.


Shareholders will vote on the deal in midMay, with regulatory approval also required for it to conclude. Completion of the deal is expected in late 2024. The combined housebuilder will face continued challenges, particularly related to pressures on house prices experienced over the past year driven by the cost of living crisis and higher interest rates. Highlighting the strategic benefi ts of the merger, Barratt stressed the complementary offerings of the two fi rms in its halfyear results statement. Barratt reported a 28% decline in new home completions in the third and fourth quarters of 2023 compared to the previous year. However, CEO David Thomas remained optimistic, citing early signs of improvement in reservation rates and buyer sentiment since anuary, driven by expectations of lower interest rates and more competitive mortgage rates. David Thomas commented on the recent merger announcement This is an exciting opportunity to bring together two highly complementary companies to cre ate an exceptional homebuilder in terms of quality, service and sustainability, able to build more of the highquality homes this country needs. Matthew ratt, CEO of edrow plc, enthused about the merger against the challenging backdrop As with Barratt, edrows 50year success story is based on its people, products and supply chain


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partners. Together, well be in a much better position to offer a broader range of highquality and energy effi cient homes to customers.


Aff ordable 96-unit urban Passivhaus development in Salford nears completion


Construction of the largest assivhaus affordable housing scheme in the north west is nearing completion. The fi nishing touches are now being made at Greenhaus  a highly sustainable development of  homes, which is being built on Chapel Street in Salford, with the fi rst residents expected to start moving in this spring.


The development is being delivered by The English Cities Fund (ECF)  a oint venture between nationwide placemaker, Muse, Legal  General and Homes England  alongside Salford housing association Salix Homes, and supported by Salford City Council. In February, delegates from the Northern Housing Consortium (NHC)


paid a visit to Greenhaus, including leaders from housing associations across the north, to fi nd out more about how sustainable and affordable homes can be delivered at scale.


The ninestorey development has been built to assivhaus Classic certifi ed standard, which is the leading lowenergy design standard. The sustainable features at Greenhaus include triple glaed windows, the latest insulation technology, improved ventilation and airtightness, air source heat pumps and publicly accessible electric vehicle charging points. The one and two-bedroom homes will be available in a mix of tenures including social rent, affordable rent and renttobuy. assivhaus homes offer a range of health benefi ts for residents. The airtightness, thermal comfort and improved ventilation help protect against airborne pollutants, reduce the risk of illness associated with living in cold homes, and minimise the risk of damp, mould and condensation. Greenhaus is part of ECFs 1bn, 50acre Salford Central transformation being delivered in partnership with Salford City Council, and will take the overall percentage of affordable homes delivered by ECF to 25 across the Chapel Street area of the masterplan. The homes are being built by lead contractor Eric Wright Construction and were designed by architect Buttress. Salix Homes secured funding from


NatWest, along with grants from Homes England and Greater Manchester Combined Authority (GMCA) to help fund the multi-million-pound scheme.


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