House builder Barratt sees improved sales
Share
House builder Barratt Developments says it is on track to deliver a substantial improvement in operating profit in both the second half and the full financial year.
In an interim management statement today the company says sales rates have returned to more normal levels and it has continued to see an increase in private average selling prices, up by 4% on the prior year.
It says the recent Budget announcements contained a number of positive measures for housebuilders.
It believes the introduction of the government backed shared equity scheme, FirstBuy, provides an important selling tool for the industry given the limited availability of higher LTV mortgages, particularly for the new build sector.
It says the group has a strong track record of maximising the benefits of the previous HomeBuy Direct scheme, and this new initiative is likely to reduce the requirement for our own shared equity products going forward.
Mark Clare, group chief executive of Barratt Developments says: “We are encouraged by the improvement in market conditions we’ve seen since the start of 2011, following a challenging autumn period. Our strategy for recovery is progressing well and we continue to expect a substantial increase in operating profit in our second half. The successful refinancing provides a strong platform for the business and will enable us to reduce the effective cost of financing going forward.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
