Barratt predicts demand for over 1,500 homes in FirstBuy scheme
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Barratt Developments says it already has 100 deals in the pipeline for the government’s FirstBuy scheme and expects demand to exceed 1,500 properties.
In a trading statement published last week for the year ending June 30, the building firm says FirstBuy, for which it has been allocated £24.9m, has been popular with borrowers since it was launched on June 20.
The scheme provides first-time buyers who have a 5% deposit with a 20% equity loan split between the government and a housebuilder.
A Barratt spokesman says it has had 10,000 registrations of interest on its website for the scheme. He says the firm expects the scheme to be popular and anticipates applying for more funds once it has exceeded the £24.9m allocation
The trading update, which was published ahead of Barratt’s annual results on September 14, shows it sold 11,171 homes in the year compared with 11,377 in 2009/10. The firm says it will return to profit this year, partly helped by its exposure to the London market.
Mark Clare, group chief executive at Barratt, says: “FirstBuy is a timely boost but a market recovery cannot be sustained without improved lending conditions. Our focus remains on improving margin rather than driving volumes.”
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