Housebuilder predicts significant improvement in profit as average selling price increases 7%

Barratt has predicted a significant increase in full-year profit after revealing an increase in sales and average selling price.

The housebuilder said average reservations were up 25.9% due to higher reservation rates on a larger number of sites.

Average selling price increased by 7% to £207,000, which Barratt said was due to higher margin sites coming to market.

Private forward sales increased 27.4% to 3,221.

Mark Clare, group chief executive said, “Our strategy of pursuing value rather than volume combined with bringing recently acquired higher margin land into production, is delivering a significant improvement in operating performance.

“The location of our new sites coupled with our highest quality housing is helping to drive pricing and some recovery in sales rates.

However, Clare said that the growth prospects for housebuilders would remain constrained without an increase in mortgage lending.