Leicestershire housebuilder’s sales decline in tough housing market

Housebuilders Barratt Homes has recently reported a decline in sales amidst the challenges of a ‘difficult’ housing market.

In line with a similar announcement made by their competitors at Bellway the day before, Barratt revealed that their forward sales have dropped by over 30%.

This decline is attributed to homebuyers struggling with increased mortgage rates and the ending of the Right to Buy scheme.

The company, which originated in Newcastle but is now based in Leicestershire, issued a trading update during its Annual General Meeting, reaffirming its commitment to constructing between 13,250 and 14,250 new homes in the coming year.

However, it has been reported that Barratt expressed that due to the ‘continual uncertainty in the housing market,’ they would exercise caution and be ‘highly selective’ in land acquisitions for the year 2024.

Barratt noted a drop in weekly private reservations, decreasing from 188 to 169.

To counter this decline in private sales, the company is now concentrating more on selling multiple units to the private rental and affordable housing sectors.