David Thomas, CEO of Barat Redrow, the largest housing construction company in the UK, strongly criticized municipal requests for the installation of fake chimneys in new homes, calling it "a pointless waste of costs." As the company faces financial challenges and weak demand in the housing market, Thomas stated that the additional costs arising from these decisions are completely unreasonable.
Financial Challenges and Rising Costs
In his remarks, Thomas referred to the £1,200 cost for installing reinforced plastic chimneys in homes without fireplaces, saying: "Our homes do not have fireplaces, and installing chimneys on them is an unnecessary expense. It is a waste of costs." Various municipalities in some areas of the UK have asked builders to do this to make new homes harmonize with their surroundings, but this action has led to increased construction costs at a time when business expenses are rising.
Reduced Construction Forecasts
Barat Redrow has reduced its housing construction forecasts for this year. Given the higher financial burden and more complex regulations, the company announced that its construction plans are under pressure. Thomas also noted that the Labour Party's planning reforms are not sufficient, and more actions are needed to achieve the goal of 1.5 million new homes in this parliament.
Additionally, Barat built 17,667 new homes last year, an increase from 16,826 homes the previous year. However, due to ongoing planning delays, the company expects to build between 17,500 and 17,900 homes this year, which is lower than the previous forecast of between 17,700 and 18,200 homes.
Caroline Silver, chair of the board of Barat, stated: "Although recent planning reforms should gradually increase housing delivery, they will not be sufficient on their own." She also emphasized that the government needs to take actions to support demand, especially for first-time buyers. Silver added: "Only by reducing homeownership barriers and addressing the tax and regulatory burdens that limit construction in many parts of the country can the government unlock higher levels of housing delivery, including affordable housing, and solve the housing crisis."
Barat has also predicted that higher rates and financial pressures will continuously impact consumer confidence next year. The housing industry is facing lower demand as lenders are raising rates, which is driven by the war in the Middle East. Additionally, construction costs, which Barat expects to rise by 4% next year, have put more pressure on the industry.
The company stated: "A more positive start in 2026, with budget uncertainties resolved and interest rates reduced on the agenda, was significantly impacted by the onset of the Middle East crisis at the end of February." These events, along with risks related to energy costs, supply chain disruptions, and inflation, have led to significant changes in interest rate expectations and made homebuyers more cautious, increasing financial challenges in the UK housing market.
