Barratt’s move to buy rival Redrow in a deal worth £2.5bn could be a signal of confidence about the outcome of a competition inquiry, analysts say. 

The takeover, which would see the creation of a housebuilding giant with a combined turnover of £7.5bn, is subject to approval by the Competition and Markets Authority (CMA) and comes against the backdrop of an ongoing probe into the sector by the watchdog.