Economy

Barratt Redrow chief brands plans for fake chimneys on new homes a ‘ridiculous waste of money’

The boss of Britain’s biggest housebuilder has branded local council demands for fake chimneys on new homes a ‘ridiculous’ waste of money.

David Thomas, the outgoing boss of Barratt Redrow, spoke out as planners in parts of the country insist developers install £1,200 reinforced plastic chimneys on properties that do not have fireplaces.

‘Our homes don’t have fireplaces and putting chimneys on them is a ridiculous expenditure,’ he said. ‘That is a waste of money.’

Several local authorities require housebuilders to do the work to ensure new homes fit in with the surrounding area.

But it is driving up the cost of construction at a time when the cost of doing business is already rising and demand for new homes is weak.

Barratt Redrow has cut its forecast for housebuilding for the year

The comments came as Barratt said the higher tax burden and increased red tape was ‘constraining’ the sector as it trimmed housebuilding targets for the year.

And it said Labour’s planning reforms ‘will not be enough’ to deliver the 1.5million new homes the government hoped to see developed this Parliament.

Barratt built 17,667 new homes in the year to June 2026 – up from 16,826 over the previous 12 months.

But flagging ‘continuing planning delays’, it said it expects to build 17,500 to 17,900 homes this year, down from its previous forecast of between 17,700 and 18,200.

‘Whilst recent planning reforms should, in time, boost housing delivery, alone they will not be enough,’ said chairman Caroline Silver.

‘The Government must also take action to support demand, particularly for first-time buyers.

‘It is only by reducing barriers to home ownership and addressing the increasing regulatory and tax burdens that are constraining housebuilding viability across many parts of the country, that the Government will be able to unlock increased levels of housing delivery, including affordable housing, to start to tackle the housing crisis, create jobs and drive economic growth across the country.’

Barratt expects higher mortgage rates and affordability pressures to continue to affect consumer confidence over the next year.

The housing industry is facing subdued demand as mortgage lenders raise rates amid the war in the Middle East. Rising building costs, which Barratt expects to increase by 4 per cent over the next year, are also taking their toll.

‘A more positive start to 2026, with Budget uncertainties removed and interest rate cuts back on the agenda, was sharply reversed by the start of the Middle East conflict at the end of February,’ it said.

‘These events, and the corresponding risks around energy costs, disruption to supply chains and inflation, saw a significant shift in interest rate expectations, making homebuyers more cautious and increasing ongoing affordability challenges in the UK housing market.’

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