Barratt set to build 20% of homes using MMC

Aaron Morby 4 months ago
Share

Britain’s biggest house builder is aiming to deliver one in five new homes using moderns methods of construction by the end of next year.

Thomas said margin improvements would deliver modest improvement in board's expectations for year ending June

Barratt has rolled out a series of new housing types that will see the firm start to switch to greater use of offsite production and standardised product use.

Its commitment to driving down build costs using modern methods of construction came as the volume house builder reported a 9% fall in forward sales of private homes in May compared to the same time last year.

The slowdown in private housing orders was compensated by a near 20% rise in the number of affordable homes which saw the overall forward sales position in May 3.9% up on last year in volume terms.

In a trading statement this morning, Barratt said build cost inflation was expected to run at  3-4% for the rest of the 2019 calendar year.

It added that its focus on managing its supply chain meant that around 90% of materials now sourced by its centralised procurement function were manufactured or assembled in the UK.

Chief executive David Thomas said that operational improvements made through its new product range, including its concentration on standardised product, would underpin Barratts ability to acquire land at a minimum 23% gross margin.

Thomas said: “Our new housetype ranges are suitable for modern methods of construction. We continue to develop, trial and implement MMC and aim to use it in the construction of 20% of our homes by 2020.

He added: “To improve our cost profile, we have made further refinements to our new housing ranges this financial year, without affecting our quality or design standards.

“We continue to roll these ranges out across the business, providing us with the flexibility to replan sites to suit market conditions and meet consumer demands should the need arise.

“We continue to expect to approve between 18,000-22,000 plots for purchase per annum over this year and for the next two financial years, which will support our volume growth aspirations.”

Ahead of the firms June year end, Thomas said: “Trading since the beginning of the year has been strong, the outlook for the year is modestly ahead of our previous expectations and we are encouraged by our continued progress in driving operating efficiencies through the business.

“Whilst we continue to monitor the market closely, we are confident of delivering a good financial and operational performance in FY19.”

He added that Barratt would remain focussed on driving margin improvement and delivering its medium term targets of volume growth of 3-5% over the medium term.

 

Latest news

M&E specialist “vanishes” from Willmott Dixon hotel job

Holmes Metrotech leaves subcontractors with unpaid bills
2 days ago

Seddon suffers £3.4m construction loss

North West builder latest to be hit by challenging market
2 days ago

Liverpool FC raises ambition for new Anfield stand

Plan ditched for 4,000-seat added capacity Anfield Road stand in favour of more ambitious scheme
2 days ago

Worker killed on £40m shopping centre site

Tragedy at Glasgow McAlpine site
2 days ago

Portsmouth sounds out industry for £1.3bn scheme

44ha Tipner Peninsula scheme will create a 4,000-home waterfront community
2 days ago

Architects stop hiring as market jitters bite

RIBA research highlights "quiet and challenging" market
2 days ago

Altrad scaffolders set to strike at Drax power station

Workers vote for stoppages over pay and conditions dispute
2 days ago

BAM UK profits slide in first half of 2019

Margin squeezed to 1.8% from 2.8% a year ago
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Birmingham seeks highways firm to step in for Amey

Temporary stand-in highways contractor to deliver £85m work programme to July 2021
3 days ago

HS2 review to decide if construction should continue

Decision on future of project due this autumn
4 days ago

Structure Tone lands £60m office revamp for ad giant WPP

Extensive upgrade of Southwark office includes recladding and extensions
3 days ago

Barrett Steel buys Parker site from administrators

Shoreham deal saves 50 jobs and expands Barrett's network to 50 locations
3 days ago

First modular council homes in Cardiff approved

Wates Living to deliver homes as part of a 600 council homes partnership
4 days ago

Miller on course for 4,000 homes by 2021

House builder to open Teesside office, 18 months after setting up in the West Midlands
4 days ago

Willmott Dixon wins £14m Brighton Met college job

New college for digital and creative industries to be built at Pelham Street site
4 days ago

Costain margin up to 4% despite fall in profits

Pre-tax profit more than halved after £10m roof repair bill for Diamond Synchrotron
4 days ago

Carey Group CEO steps down

Denis Deacy's role to be taken on by Tommy Carey and Jason Carey
4 days ago

Private equity firm buys cladding specialist

EAG plans to expand its pre-construction team to bid for more work
4 days ago

£700m funding bid for 16 northern road projects

Transport for North calls on Chancellor to back ready-to-go schemes
5 days ago

First JCB electric mini diggers start arriving on site

Willow Hire and Lynch take first zero emission excavators
5 days ago

Graham to start Liverpool flyovers demolition next month

Complex dismantling of Churchill Way flyovers to cost nearly £7m
5 days ago

Private equity firm snaps up roofing supplier Marley

Belgian materials giant Etex sells Staffordshire-based roofing specialist employing 600 staff
5 days ago

Jacobs to buy John Wood nuclear arm for £250m

More than 2,000 staff to transfer to Jacobs in major UK nuclear take-over
5 days ago

Creditors blast Britain’s oldest building company

Firms owed cash demand answers after Durtnell strikes debt repayment deal with some suppliers
5 days ago

Persimmon calls in independent site quality enforcers

New construction quality checkers will vet trade contractor delivery independent from site management teams
5 days ago

Crossrail enters its “most challenging phase”

Contractor productivity a "main area of programme risk and uncertainty."
5 days ago

Shaylor collapse hits trade contractors for £19m

Directors Stephen and Ritchie Shaylor listed among major creditors
6 days ago

City planners tighten rules to avoid tower downdraughts

Skyscrapers will now be designed with pedestrian and cyclist safety in mind
5 days ago

Failed piling firm Aspin auctions off plant fleet

More than 600 pieces of kit expected to raise over £2m
5 days ago

Contractor services