Barratt checking over 200 buildings over 11m in safety review

Aaron Morby 5 months ago

Britain’s biggest house builder Barratt has revealed that more than 200 buildings now form part of its ongoing safety review of buildings over 11m.

Citiscape building in Croydon where cladding and concrete defects were uncovered
Citiscape building in Croydon where cladding and concrete defects were uncovered

The house builder revealed that so far it has spent or set aside £220m on legacy properties but revealed that present provisions of £74m to cover future remediations could rise subject to the outcome of the final building review.

David Thomas, chief executive, revealed Barratt was in talks with Government around its plans to get house builders to fund wider safety remediation work on buildings from 11-18m in height.

The Government is now calling on developers to stump up cash to fix the cladding crisis on intermediate height buildings of around four to seven storeys.

Levelling Up and Housing Secretary Michael Gove has given firms until early March to agree fully-funded plans of action warning he will take punitive action against firms failing to do so.

Thomas said: “We established an in-house Building Safety Unit in July 2021 which has brought additional expertise and resources to our existing review of our historic multi-storey buildings of all heights in light of evolving Government guidance on building safety. 

“At 31 December 2021, 206 buildings over 11 metres were part of the ongoing review.

“Discussions are ongoing and we will continue to work constructively with Government to ensure leaseholders are protected.”

He added: “Throughout its existing review the group has been reviewing buildings of all heights and a provision has already been recognised for the rectification of buildings over 11 metres for which the group is liable or had made a commitment at the reporting date.

“It is possible that further commitments may be made by the group as work progresses or as Government legislation or regulations develop.”

Thomas revealed further uncertainty about final outturn costs amid the Government’s latest ultimatum on building safety as he reported results for the first six months of the year.

Despite a small fall in completions during the first half due to efforts to step up building starts, he said Barratt was on track to deliver total home completions of 18,000 – 18,250 at the full year.

This would be an increase of  250 homes on previous guidance and in excess of the total home completions delivered in the 2019 pre-pandemic year.

Pre-tax profit remained flat at £433m from revenue down 10% to £2.25bn.

Despite the slowdown in growth, Barratt continued to generate strong reserves up 2% to £1.13bn, after significant incremental investment in land and work in progress.

The firm also lifted its forecast on construction cost inflation for the full year to 6%.


Latest news

O’Connor Utilities sold to private equity

OCU Group reported to have fetched around £400m
20 hours ago

Rolls-Royce shortlists sites for first SMR factory

Three factories will make reactor, civils and MEP modules for SMR nuclear power stations
51 mins ago

Henry Construction wins £33m Oxford housing estate rebuild

Contractor signs off first deal with A2Dominion
52 mins ago

Carillion collapse hospital hit by more construction delays

Balfour will take another 18 months to complete Midland Met scheme
16 hours ago

Leeds college launches new construction and football course

Students can now combine site and tech skills with learning at a football academy
59 mins ago

Willmott Dixon blasts new Building Safety law

Rick Willmott accuses Government of scapegoating construction over its own regulatory failure
23 hours ago

£550m plan to redevelop The Galleries centre in Bristol

Shopping centre building to be demolished for major mixed-use scheme
22 hours ago

Costain cancels supply chain event on £260m road job

Preparation work for A1 upgrade stalls as Transport Secretary dithers over approval
23 hours ago

£170m London Holborn Circus office approved

Demolition work set to start in the autumn for 10-storey office block
23 hours ago

City leaders launch net zero construction skills drive

City of London leader warns "skills gap and labour shortage are threats to our net zero ambitions"
22 hours ago

Marlborough Highways lands £32m Islington civils deal

Contractor to help with north London borough's green drive
23 hours ago

Osborne makes £45m construction loss

Sale of infrastructure business balances books as contractor looks for zero-carbon wins
4 days ago

John F Hunt forecasts record revenue and profits this year

Demolition contractor back on strong financial footing after previously setting aside £5.6m for bid rigging probe
4 days ago

Notting Hill Genesis names £2.8bn framework winners

26 firms land places on main contractor deal: Full list
4 days ago

Green light for dual hotel scheme at Nine Elms

Two new hotel towers will share common basement
4 days ago

Trials start on cement-free pre-cast piles

Aarsleff is hopeful a product will come to the market shortly
4 days ago

Ex-Telford Homes boss to run green house builder

Jon Di-Stefano takes helm at M&G backed Greencore Construction
4 days ago

Subcontractors told to stop work on Brymor sites

£80m revenue southern contractor files letter of intent to enter administration
5 days ago

House builder Chartway sold to private equity firm

Cabot Square Capital signs another major construction deal
5 days ago

Murphy Group appoints new chairman

Capita chairman and investment banker John Cresswell to start in November
5 days ago

Tolent seals £40m Newcastle ‘future-living’ housing job

135-home Vaux scheme will be first of four neighbourhoods totalling 1,000 homes
5 days ago

Cruden takes first job at £1.3bn Edinburgh Waterfront scheme

Preferred bidder named for first 750 net zero homes at new Granton Waterfront coastal town
5 days ago

Trio of student towers to be built at Brent Cross Town

Ground works under way with main contractor due to be appointed next month
5 days ago

Keltbray gets start date for £50m motorway upgrade

Contractor hails "significant step forward" for highways business
6 days ago

Site workers settle for 5% pay increase

Contractors and unions agree one-year deal following months of talks
7 days ago

Rising wages and skills gap to overshadow materials issues

Materials and product Inflation tops 20% so far this year, but labour set to be next big headache
6 days ago

Erith pays £2.8m bonus to staff after ownership switch

Around 450 staff have on average received over £6,000 since move to employee ownership five years ago
6 days ago

Algeco lands £19.2m Leeds modular school scheme

Offsite specialist will supply and install 192 steel frame modules
6 days ago

Eight firms placed on £750m Midlands and Eastern framework

Next generation framework for jobs up to £7.5m employs a parallel plotting structure
6 days ago

Aston Villa unveil plans for £100m stadium expansion

Construction set to start next year on first phase of Villa Park upgrade
6 days ago

Contractor services