Housebuilders says profit will be in line with expectations but warns growth will stall if there is no uplift in sales.
Barratt has announced its results will be in line with market expectations despite a “challenging housing market”.
In a trading statement Barratt said the economic outlook remained uncertain and that buyer hesitation had led to higher sales costs in recent months.
Barratt warned that there would be no growth in completions next year if there was no uplift in sales activity.
UK completions rose 2% to 14,351, for the year ended 30 June 2005, at an average selling price of £170,000, up 2%. Private completions were down 1% to 12,591, and social housing completions increased by 35% to 1,760. Forward sales on the 1 July were £774m.
Despite a cautious land buying policy Barratt said its land bank increased to 61,000 plots for the year.
Barratt said that the medium and longer term fundamentals of the housing market were expected to stay sound. It will announce its preliminary results on the 28 September.