Barratt sees recovery in house buying from post-minibudget lows

Housebuilder Barratt Developments said the number of homes customers are reserving has continued to bounce back after struggling in the last few months of 2022.

The company said it sold 0.3 homes per week in each location it was selling houses in the final quarter of last year.

That jumped to more than twice that amount, 0.71 homes, in the 12 weeks to April 23.

This is still behind last year, when the figure was 0.94, but it shows demand – which cratered as interest rates shot up after September’s minibudget – is starting to strengthen again.

“In February we reported early signs of recovery in our reservation rates following the exceptionally challenging trading conditions experienced at the end of 2022,” said chief executive David Thomas.

“Whilst the economic backdrop remains difficult, we are pleased that more positive sales rates have been maintained through this period and we are now fully forward sold for the 2023 financial year.

“As a result, we expect to deliver full-year adjusted profit before tax in line with current market expectations.”

Barratt said it expects full-year adjusted pre-tax profit to be in line with expectations.

It has sold homes for just under £3 billion in advance as of April 23, a decrease from £4.5 billion a year before.

Faced with reduced remand, the company also slowed the number of homes it was building.

During the period it built just 303 homes per week, compared to 359 in the same period a year earlier.

It expects to build between 16,500 and 17,000 homes this year.

Mr Thomas added: “We remain committed to leading our industry in quality, customer service and sustainability.

“We are proud to be the only major housebuilder awarded five stars by our customers for the 14th successive year in the Home Builders Federation awards and we remain focused on delivering the high quality and sustainable homes the country needs, creating jobs and supporting the economy.”