Barratt warns of cost of living concerns as house sales stall

Coalville-based housebuilder Barratt Developments has warned of economic headwinds this morning, after it said that private reservations remain below last year’s figures.

Barratt stopped short of issuing a profit warning, but admitted the outlook for the rest of the year is “less certain”. The company said it is “on track” to deliver its forecasted profit before tax.

From 1 July to 9 October, net private reservations per average were 188 – down from 281 last year. This, said Barratt, was indicative of growing cost of living concerns that have been compounds by increased mortgage rates and reduced mortgage availability.

David Thomas, chief executive, said: “We continue to see strong levels of interest across the country, however private reservations remain below the level seen in FY22 as customers react to the wider economic uncertainty.

“Whilst the outlook for the year is less certain, we remain on track to deliver adjusted profit before tax1 for the year in line with current consensus, and we are focused on maintaining our commitment to lead the industry in the quality, energy-efficiency and sustainability of our homes and in our customer service, all of which are fundamental to our ongoing success amid a more challenging market backdrop.”

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