The UK’s third largest house builder said its average selling price for this year is on course to rise 15% by June 30, thanks to a shift in the type of houses being sold.
Mark Clare, Barratt’s chief executive, said: “The increase in our selling prices coupled with effective cost control is leading to good margin growth and we expect to deliver a profit for the second half .”
He added: “Our forward sales now exceed £1bn, the highest level we have reported for two years.”
“We’re continuing to secure highly desirable land that meets our hurdle rates and will further accelerate our margin recovery.”
Barratt expects to sell about 11,500 properties in its full year, with houses accounting for about 60% of the total, compared with 46% a year earlier.
Net private reservations in the 19 weeks to May 9 rose 4% year-on-year, while forward sales rose by a third year-on year to £1.07 bn.
The house builder has agreed to buy £448m of land, or 12,286 plots on 90 sites, since mid 2009.
Barratt said it continues to chisel away at its debt mountain, expected in June to stand at £500m, compared to £605m at the end of 2009.