The newly-merged housing developer Barratt Redrow said it is beginning to see a more stable market thanks to better mortgage affordability and availability.

In its latest trading statement the housebuilder pointed to confidence in the new government’s plans to overhaul the planning system and boost the affordable housing sector – saying that while the plans would take time to bed in, they would likely enhance delivery of new homes across the UK.

In a stock market statement, the company said: “Whilst customer demand continues to be sensitive to the wider economy, we are beginning to see more stable market conditions with increased mortgage availability and affordability.

“It will take some time for customer confidence to fully recover from the macroeconomic headwinds faced over the past two years, but we are encouraged by the solid trading we have experienced over recent weeks.”

Reflecting unchanged guidance on the standalone Barratt operations and the inclusion of Redrow’s order book and performance from 22 August 2024, total home completions for Barratt Redrow are expected to be between 16,600 and 17,200 for full year 2025.