Barratt encouraged by homebuyer interest
Barratt Developments today said there were signs of stability in the British property market after it reported improved visitor numbers and reservation rates.
The housebuilder said cancellation rates also averaged at 16% for the period from January 1 to May 10, compared to 25.7% a year ago.
Since the New Year, Barratt has sold more than 4,600 homes at “acceptable” prices, adding that it remained on track to deliver volumes and margins in line with its expectations for the financial year.
Chief executive Mark Clare added: “Whilst there are early signs of stability, the housing market remains challenging, and is constrained by a lack of mortgage finance on appropriate terms.”
Despite the uncertainty, Barratt said visitor levels per site so far this year were up 17% on the final six months of 2008.
Total reservations averaged 243 per week, equivalent to less than one private sale a week per site but up 4.4% on the same period last year and up 20.5% on the end of 2008.
Barratt added: “Over the last six weeks, since March 30, visitors per site were up 7.8% and net private reservations were up 58.8% compared with the depressed level in the same period last year.”
Today’s comments from Barratt are in line with rival Redrow, which said yesterday that it planned to restart work on some mothballed schemes.
