Barratt partners with Homes England and Lloyds Bank to build thousands of new properties

Barratt Developments has entered into a joint venture with Homes England and Lloyds Bank to build thousands of new homes across the UK.

In a statement, the FTSE 100 company said it will enter into a partnership with Homes England, the government agency responsible for home construction and renovation in England, and Lloyds, one of the largest financiers of the UK housebuilding sector.

The company added that the partnership, called Made, will act as “master developer for multiple large-scale, residential developments ranging from 1,000 to over 10,000 homes.”

All this in combination with various community facilities and employment purposes.

According to the Leicestershire-based company, potential development opportunities would include “large brownfield developments as well as new garden village-style communities”.

The partnership is initially supported by joint funding of £150m provided by Barratt, Homes England and Lloyds, all three of whom hold an equal stake.

The news follows Prime Minister Keir Starmer’s pledge that Labour will support housebuilding from ‘day one’ to meet an ambitious target of 1.5 million homes over the next five years.

Housing and Planning Minister Matthew Pennycook said: ‘A failure to ensure the development system works properly has delayed the delivery of tens of thousands of new homes in recent years. This Government will work with all those focused on improving the situation.’

David Thomas, managing director of Barratt Developments, said: “We are determined to play our part in delivering the millions of new homes the country needs over the next 10 to 20 years.

‘To achieve this goal, we need to implement more large-scale developments.’

Last week, Barratt’s profits fell by three-quarters from last year after the company completed construction of more than 3,000 fewer homes.

The group, which recently acquired housebuilder Redrow, saw its pre-tax profits fall 75.8 per cent to £170.5 million in the year ended June.

During this period, 14,004 properties were built, compared to 17,206 in the previous 12 months, although this was at the higher end of the company’s forecast.

Barratt Developments shares rose 0.75 percent to 496.30p early Monday afternoon.