Housebuilder Barratt Developments thanks “robust” demand for 12% rise in profit
Barratt Homes has reported a rise in full-year profits as “robust consumer demand” helps prop up the housing market despite signs of a wider slowdown since the EU referendum.
The UK’s biggest housebuilder saw pre-tax profit increase by 12.1% to £765.1m in the year to June 30, while revenue rose 9.8% to £4.65bn.
The average selling price for its homes increased by 6% in the period to £275,200 and total completions came in at 17,395 – the highest level in nine years.
The company said that while June’s general election created some uncertainty and the impact of Brexit is still unknown, the combination of government support for housebuilding, attractive mortgage finance and Help to Buy continue to support demand, with forward sales up 13.8%.
Chief executive David Thomas said it had been “another excellent year” for the group.
“We have delivered a strong operational and financial performance and our highest completion volumes for nine years.
“The group starts the new financial year in a good position with a strong balance sheet, healthy forward sales and we continue to see robust consumer demand supported by a positive mortgage environment.”
The results come as industry data points to a wider slowdown in the housing market.
The latest figures from Nationwide Building Society showed house prices dropped by 0.1% in August, signalling that pressure on household finances from Brexit-fuelled inflation is hitting buyer confidence.