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
To stand the best chance of beating harmful viruses, now’s the time to start strengthening your immune system Every minute of our lives, we are bombarded by viruses, fungi and bacteria that can make us ill and, simplistically, it is the job of our internal network to sift through the trillions of micro-organisms in the body, working out which are …Read more...
With many of us spending more time at home, why not try some DIY jobs that may be bigger than you would usually take on? The great thing about doing it yourself, is the pride you get after finishing the job. But remember, always consult a professional if the task at hand goes beyond your capabilities or involves electrics or gas. Tiling a …Read more...
With the property market open, now is the perfect time to get your property “market-ready.” Tidy the Garden The garden is a huge selling point for most properties on the market. With the warmer weather having arrived, now is the perfect time to get into your garden to complete quick and simple jobs to make your property more sellable and …Read more...
Yesterday evening, the Prime Minister, Boris Johnson led the daily news briefing with an update on the lockdown rules. Mr Johnson confirmed that the five tests that needed to have been met during lockdown have now been met. The five tests included: 1. Making sure the NHS could cope. 2. A sustained fall in the …Read more...
Boris Johnson announced on Monday that all non-essential retailers will be allowed to reopen in England from the 15th June. Retailers will have to adhere to new guidelines to protect their workers and their customers, and it is ‘contingent on progress in the fight against coronavirus.’ This goes alongside outdoor markets and car showrooms which …Read more...