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Barratt sells more affordable housing
The UK’s largest house builder has recorded an increase in the affordable part of its forward order book, as well as a jump in revenue from joint ventures.
In a trading update for the period 1 July to 12 November, Barratt reported an increase in its forward sales of 8.4% from £2.7bn to £2.9bn, compared to the same period last year.
Forward sales for affordable housing went up 12.1% from £677m to £759m, compared with only a 5.3% increase in private sales. Sales from joint ventures went up by 24.3%, from £188m to £234m.
Barratt completed 18% more affordable homes in the last financial year than the previous one, even as overall completion figures remained steady. David Thomas, chief executive of Barratt, said at the time that it aimed to produce a lower proportion of affordable housing – 18% – than it currently was.
The builder launched 79 developments during the period, up from 69. It grew its land bank hugely, purchasing 37 sites, worth a massive £506m, compared to 15 sites for £200m in the same period last year. It is currently working on two joint ventures with Hyde in the Harrow area.
Mr Thomas said: “We have started the financial year strongly with a good sales rate, driven by customer demand for new homes, and supported by an attractive lending environment. We remain committed to quality, build excellence and market-leading customer service and are working hard to increase the supply of houses across the UK.
“We remain focused on driving operational improvements through the business and we continue to be confident in delivering a good performance in [2017/18].”
