The extra costs include £130m for further work to “developments previously identified as potentially requiring remediation work, which have been previously disclosed. ”
Barratt conducted a review of completed reinforced concrete frame buildings after design defects were discovered at its Citiscape project in Croydon, south London.
It said the work “relates to the remediation of two developments in London.”
A further £62m was also set aside for extra fire safety work in relation to the Government’s Building Safety Fund.
The latest provisions were revealed in a trading update for the year ended 30 June 2024.
Barratt is currently waiting approval from the CMA for its merger with Redrow which has cost £23m to organise.
Total housing completions during the year dipped to 14,004 from 17,206.
Build cost inflation was running at 5% during the year but Barratt expects that to drop with costs flat this year.
David Thomas, Chief Executive, said: “During another year of economic and political uncertainty, we have delivered a strong operational performance, reflecting the exceptional work of our employees, subcontractors and suppliers, and their commitment to delivering high quality homes that people want to live in.
“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.”
