Difficult trading continues for Barratt

Trading continues to be difficult, according to Barratt, with the volume housebuilder reporting a reduced net private reservation rate since July 1 of 0.46 per outlet per week.

Issuing an update for the first three months of its financial year up to October 8, the company said the outlook for the year remained “uncertain”; the long term health of the housing market relied upon the availability and pricing of mortgages. The 0.46 net private reservation rate is down on the 0.55 of FY 2023.

Barratt’s muted sales activity conveyed ongoing mortgage challenges as well as the loss of Help to Buy, which represented 12% of its private reservations in the prior year period, the housebuilder stated. It has continued to bring multi-unit sales to the affordable housing and private rental sectors as well as offer incentives for open market sales.

Reflecting the slower reservation rate during the reporting period, Barratt’s total forward sales (including JVs) as of October 8 2023 totalled 9,221 homes (October 9 2022: 13,314 homes). These were at a value of £2,362.0 million (October 9 2022: £3,603.1 million).

The housebuilder still expects to deliver total home completions of between 13,250 and 14,250 homes for …