Barratt Developments sites all working in spite of supply challenges

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Barratt Developments PLC (LSE:BDEV) said house demand was still strong though had eased compared to the end of lockdown sale restrictions last year.


Private net reservations between 1 July and 10 October 2021 were averaging around 281 per week against 288 a year ago, said the builder, though this was still around 7% higher than two years ago.


The FTSE 100 housebuilder acknowledged there were building material supply challenges but said it had not yet experienced any significant disruption to its build programme and all sites were working.


David Thomas, chief executive added: “The positive start to the new financial year has continued in recent weeks with private reservations remaining strong.


“This is particularly encouraging given the significant year on year reduction in Help to Buy reservations and the ending of the stamp duty holiday.”


Prices have also remained healthy, with forward sales now totalling 15,393 homes, up slightly on a year ago, at an average of GBP344,300, up 3.9%.


Completions in the current year are below a year ago at 3,699 but this reflects a more normal seasonal weighting said the builder, with the second half expected to be stronger.


For the current year overall, completions are still expected to be between 17,000 and 17,250 homes with another 750 through joint ventures.


Barratt added that Mike Scott will be joining as Chief Financial Officer on 6 December 2021.

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