Last year the company sold its highest number of buildings in a decade – 17,579 homes – but experts say Brexit and interest rates dim the outlook
Barratt’s annual pre-tax profits were up 9.2% to £835.5m while revenue increased 4.8% to £4.87bn. Selling 17,579 houses in the 12 months to June 30th, was a rise of 1.1% on the previous year’s sales.
The average selling price on completion increased by 5% to £288,900, while forward sales were up 11.1% to £3bn.
Barratt has claimed that market conditions remain favourable, and that the availability of mortgage finance and the government’s Help to Buy scheme continue to support “robust consumer demand”.
Despite recent reports that Help to Buy will be eliminated in 2021, Barratt’s outlook remains positive.
Chief executive David Thomas has said: “The group has had another outstanding year delivering a strong operational and financial performance, and our highest volumes in a decade.
“As the UK’s largest housebuilder, we are helping to address the country’s housing shortage – creating jobs and supporting economic growth whilst continuing to lead the industry in quality and customer service.”
Senior analyst at Hargreaves Lansdown, Laith Khalaf, places Barratt’s record-breaking profits in the context of a worried housing market overall.
He said: “Barratt Developments has sold more houses at higher prices, and that’s led to record profits for the housebuilder.
“Despite this strong performance, the share price has lost almost a fifth of its value since the start of the year.
“That’s because the market is worried about three things which are out of Barratt’s control – Brexit, interest rates and Help to Buy.
“Unemployment is currently at a record low, but clearly there are concerns that withdrawal from the EU may not be an entirely smooth ride, and that puts a dampener on stocks like Barratt, which are plugged into the domestic economy.”
Connect with us
View by date
First Rugby World Cup semi-final for 12 years, for Eddie Jones’s team England were impressive, as they blew away a spirited Australia side on Saturday. Eddie Jones’s team worked tirelessly and were organised in defence, providing their best performance at this years’ Rugby World Cup, when they needed it the most. The game started frantically, …Read more...
If you’re planning on carving pumpkins this Halloween, make the most of the whole pumpkin! There are plenty of recipes out there to try, but we love this soup which uses both the flesh and seeds Pumpkin & lentil soup Serves 4 Kcals per serving: 233 Suitable for vegetarians and gluten free Ingredients • 1 …Read more...
Don’t let the cold keep you indoors. Snuggle up against the elements in soft chunky knits and stylish accessories. Here are our faves.. 1. Squirrel Print Hat & Mittens Set With this cute crocheted hat and matching mittens, they’ll be ready for splashing through all the puddles! Featuring ribbed cuffs, fora snuggly mitten fit. Embellished …Read more...
Grab your broomsticks, it’s Halloween! Here’show to keep your little coven spellbound and the not-so-little monsters in your life cackling at some of Britain’s top haunts. Apparently, we have the Celts to thank for Halloween and its creepy traditions. According to some scholars, the last day of October marked the end of the Celtic calendar …Read more...
Typhoon Hagibis is gathering force and ready, not only to batter Japan and provide a significant threat to life and property, but also to put a real dampener on this weekend’s sporting calendar The devastating tropical storm, expected to be the worst to hit the region this year, has already put the Rugby World Cup …Read more...