Is BTRW.L (Barratt Redrow plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, BTRW.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (4.96% vs ≤33% threshold), interest income ratio (0.63% vs ≤5% threshold), and cash & securities ratio (18.84% vs ≤33% threshold).

Barratt Redrow plc is a major player in the UK residential construction market, known for acquiring land and developing a wide range of properties from family homes to city apartments. Operating under well-known brands like Barratt Homes, David Wilson Homes, and Barratt London, the company also engages in commercial development through its Wilson Bowden arm. Their business model focuses on the entire lifecycle of housing, from planning and design to construction and mixed-use regeneration schemes. For Muslim investors using HalalStocks.co.uk, Barratt Redrow plc is currently classified as Halal, having passed all four AAO IFI screening criteria. This 'Pass' status indicates that the company's core business of building homes is permissible and it does not derive significant income from haram sources like gambling or alcohol. Investors can be confident that the fundamental nature of the business aligns with Islamic principles. Financially, the company presents a robust profile for shariah-conscious portfolios , particularly regarding its debt management. With interest-bearing debt sitting at just 5.0% of its market capitalization , it is far below the 33% threshold often used to flag risky leverage. Additionally, its cash and interest -bearing securities make up 18.8% of its market cap, and interest income is a minor 0.6 3% of revenue, showcasing a clean financial structure that avoids heavy reliance on interest-based financing. Going forward, investors should continue to monitor the company's treasury management strategies. While current interest income is low, large cash reserves in a high-interest environment can sometimes push companies closer to the 5% limit for impermissible income. However, as it stands, Barratt Redrow represents a compliant option within the consumer cyclical sector for those seeking exposure to the UK housing market . Barratt Redrow plc operates in the Consumer Cyclical sector under the Residential Construction industry and is headquartered in Coalville, GB. The company is led by CEO David Fraser Thomas and employs approximately 6,270 people.

BTRW.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. BTRW.L passed 4 of these 4 screens.

Although BTRW.L passes all shariah screens, it does earn $35.4M in interest income (0.63% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.63 to purify the income.

BTRW.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.