Housebuilder doubles sales in the social sector as it focuses on providing more affordable homes in competitive market
Barratt has said that it expects record completions, margins and pre-tax profit for the six months to 31 December despite a more competitive housing market
The housebuilder said that it had adjusted to more normal levels of activity in the housing market by exercising caution in the land market and tightening its acquisition criteria for buying land.
It said that its strong performance for the period was due to its geographic spread, affordable product range and urban regeneration skills. Barratt said it now built 80% of homes on brownfield land.
The housebuilder said that housing completions for the period were up 2% at 6,866 homes at an average selling price of around £165,000 an increase of 2%.
During the period it refocused from the private to the social housing sector as private housing completions fell 8% to 5,610 and the number of social housing units doubled to 1,256 homes. Average selling price for social homes rose 18% to £105,800 while private completions had an average selling price of around £165,000, an increase of 2%.
Forward sales at 31 December 2004 increased to £800m which, together with legal completions to date, represented approximately 80% of Barratt’s full year target.
Barratt said that the fundamentals of the housing market remained sound with low interest rates, planning delay and high employment levels. It said it was confident of a good performance in the next six months because of strong finances, a high quality land bank and record forward sales.
Barratt’s interim results for the six months to 31 December will be announced on 23 March.
