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
The 2018 World Artistic Gymnastic Championships will be the 48th edition of the games and will be held between October 25th and November 3rd The event will mark the first time that the Championships will be held in Qatar, and the middle east – who will also be hosting the next World Cup in …Read more...
It hardly seems possible, but summer is officially over and with both Halloween and Bonfire night fast approaching, here are a few ideas to keep everyone happy Pumpkin carving Halloween wouldn’t be the same without getting creative and a little messy carving pumpkins! Instead of buying one from your local supermarket, why not make …Read more...
This Slimming World dish is perfect for warming up all the family on cold nights. Easy to make, it’s just the recipe you need for Bonfire night! Spicy, baked bean soup SERVES 4 | 30 MINS – VEGAN Low calorie cooking spray 400g frozen mixed onions, carrots and celery (or 200g each frozen chopped …Read more...
When you think of Autumn, what springs to mind? Hot drinks, falling leaves, lots of colour and conkers? Well, Autumn is just around the corner which means it will be time to put our summer clothes away and get out our ‘in-between’ clothes before we need our winter woollies! Given the very hot summer we …Read more...
After a gloriously sunny and hot summer, it is nearly time to dig out the woolly jumpers and thick coats from the back of the wardrobe now that winter is approaching Before winter strikes, it is important to prepare yourself and your home before you are left with any nasty or stone-cold surprises. As the …Read more...