Barratt home completions fall 6% as London dives

Aaron Morby 6 years ago
Share

Britain’s biggest builder failed to raise completions for the first time since the financial crisis as homes sales halved in the Capital.

David Thomas, Barratt chief executive, aims to restore volume growth by year-end
David Thomas, Barratt chief executive, aims to restore volume growth by year-end

Barratt new home completions fell 5.5% to 7,180 in the first half of the year dragged down by London which plummeted from 842 to around 367 homes.

The fall was partially offset by the regions, which achieved the highest level of completions for nine years at 6,813 (2015: 6,784).

Barratt said it also saw stronger reservation trends, particularly in Scotland, the North of England, the North West and West Midlands.

In London, the house builder said that pricing action at a small number of London sites had successfully stimulated reservations rates in the second quarter.

According to the house builder’s first-half trading statement this morning pre-tax profit is expected to be around £315m, 7% higher than the same period in 2015.

Average selling prices continued to strengthen, albeit more modestly, up nearly 4% to £264,000

Total forward sales as at 31 December 2016 were up 16% by value on the prior year, equating to 10,520 plots (2015: 9,317).

David Thomas, Barratt chief executive said: “This has been another good half year for the group. Consumer demand is strong benefiting from good mortgage availability and ongoing government support.

Our healthy forward order book and this strong demand leaves us on track to deliver on our volume guidance for the full year.

“Our focus remains on maintaining good operational and financial performance, and delivering attractive shareholder returns. The fundamentals of the market are robust.”

Latest news

Tide gets green light for UK’s tallest modular tower

Volumetric specialist to build 48-storey student skyscraper at Canary Wharf
13 hours ago

Demolition starts on half-built £48m Taylor Wimpey flats

Furious local residents blast house builder over "unbearable" noise
3 days ago

Civils contractor fined £600k after boy dies in drainage pipe

Workers find seven-year-old who suffocated on housing site
3 days ago

Plan for trio of towers at old Yorkshire Post site

Galliford Try advises on construction plan for Leeds student and build to rent towers
3 days ago

Insolvency to rival inflation as project cost threat

Inflationary pressures likely to peak this year before easing in 2023, but supply chain stress is growing.
3 days ago

B+K starts £300m Sheffield West Bar scheme

Funding deal triggers start on major mixed-use scheme
3 days ago

Willmott Dixon bags £44m Passivhaus leisure centre

Private builder prepares to start Staines-upon-Thames complex
3 days ago

Go-ahead for £160m Cambridge mixed-use scheme

Devonshire Gardens will consist of 70 private rental flats and 120,000 sq ft of offices
3 days ago

Construction buyers report first drop in output for 18 months

Civil engineering worst performing sector
4 days ago

Construction and infra margins hit 3.2% at Morgan Sindall

Contractor picking deals carefully as inflation continues to bite
4 days ago

Morrisroe Group revenue tops £200m

Pre-tax profit halves to £2.7m as cost inflation bites
4 days ago

Kier to start new £400m ‘smart’ prison this autumn

At least 50 ex-offenders will help build new HMP Full Sutton
4 days ago

Former P&R Morson staff to launch legal claim

Former staff of failed Midlands M&E specialist consult with lawyers following administration
4 days ago

Eight firms win big north west MMC housing deal

JV North consortium plans to build 4,000 homes by 2026
4 days ago

Balfour to replace Ringway Jacobs on £176m Bucks highways deal

Balfour to start new eight-year maintenance contract in 2023
4 days ago

O’Keefe suppliers owed £13m despite Byrne rescue

Unsecured creditors to get less than 2p in the pound for their debts
5 days ago

Taylor Wimpey staff to get £1,000 towards fuel bills

All staff earning below £70,000 will receive a one-off payment
5 days ago

Equans bags Birmingham 300 council homes retrofit pilot

Council homes retrofit trial will test way for ambitious 60,000 homes decarbonisation plan
5 days ago

Van Elle returns to profit after £125m record revenue

Piling contractor restores dividend after work rebound delivers £3.6m profit
5 days ago

Race for places on £2bn housing decarbonising deal

South west central procurement body starts race for places
5 days ago

Kier signs off £36m Liverpool school job

Work to start on new Deyes High School in Maghull
5 days ago

WSP buys property and infra businesses from Capita

Consultant pays £60m for GL Hearn and Capita Real Estate and Infrastructure
6 days ago

Leeds unitised facade contractor crashes

Jobs axed as Glasshus Facades falls into administration
6 days ago

Morgan Sindall wins £61m Abergavenny super school job

Existing King Henry VIII High School will be replaced by a 1,900 place all-through school
6 days ago

Select buys world’s biggest battery drilling rig

80% of Select's fleet now emission-free equipment
6 days ago

McLaughlin & Harvey lands £55m aircraft hangar

Construction to start within weeks at Farnborough Airport
6 days ago

FP McCann makes first cement-free precast pipes

Earth Friendly Concrete used in precast factory to make low carbon construction products
6 days ago

Public buildings to get another £635m for green heat upgrades

Latest funding round to pay for major low carbon heating installations
6 days ago

£3bn Sellafield infrastructure race set to start

Contest to start in October for four partners in infrastructure delivery shake-up
7 days ago

Galliford Try starts revolutionary first secure school

£26m contract awarded for Medway Secure Training Unit transformation into a secure school
7 days ago

Contractor services