Barratt sees "marked slowdown" in market

Barratt has seen a “marked slowdown” in the UK housing market in the second half of 2022 with net reservations slipping to 0.30 per outlet per week since October compared to 0.69 the year before.

Political and economic uncertainty, rising mortgage rates and falling consumer confidence are cited as causes of the slowdown.

In a trading statement covering the half year ending December 31 2022, Barratt reported its sales rate for the full period as 0.44 net private reservations per active outlet per week compared to 0.79 last year. The firm’s forward order book as of December 31 was 10,511 homes at a value of £2,544.4 million compared with 14,818 homes at £3,794.3 million the year before.

However, total home completions in the six months stood at 8,626, 7% higher than the year before. Barratt’s private average selling price increased by about 13.6% to around £372,000 (HY22: £327,400), reflecting, it says, a positive mix impact, an increased proportion of London completions and underlying house price inflation.

"We have delivered a strong operating performance for the six months to 31 December 2022,” said Barratt ceo David Thomas. “This was possible because of our significant forward order book at 30 June …