Barratt Redrow said it is encouraged by solid trading in recent weeks amid more stable market conditions.

In its first trading update as a combined group, it said total home completions in the current year are projected at between 16,600 and 17,200. It plans to build 22,000 homes a year in the medium term.

The private reservation rate between 22 August to 13 October came in 36.7% ahead of the pro-forma equivalent last year.

The merger was officially completed on 21 August after agreement was reached with the Competition and Markets Authority.

At least £90m of cost synergies are expected and will include the closure of nine divisional offices. Barratt said it will provide further details on its cost-saving measures in a half-year trading statement in February.

David Thomas, chief executive, 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.”

He continued: “This is an exciting new chapter for our business. Barratt Redrow is uniquely well-positioned to meet the need for new homes of all tenures across the country.

“We have superior scale, with a differentiated multi brand offering that can be deployed across our strong combined land portfolio.

“We begin this journey with a strong balance sheet, a solid forward sales position and the ability to add significant value through cost and revenue synergies. We look forward with confidence to delivering a smooth and efficient integration process, and to capturing the enhanced growth opportunities ahead of us.”