As part of its financial results for the year ended 30 June, Barratt Developments, one of the UK’s largest housebuilders, has recorded a total of 14,004 home completions.
The housebuilder reported that forward sales were significantly down on last year, dropping from 8,995 in June 2023 to 7,239 homes.
Despite these lower figures, Barratt said its adjusted operating profit for the year was likely to be slightly ahead of expectations.
Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, said: “Lower home completions, lower profits and legacy property charges of almost £200m mean 2024 will not go down as a vintage year for Barratt Developments.Â
“The year ahead is also likely to present challenges with the group guiding to another fall in completions.
“That said, there are reasons to think the industry may now be past the worst.
“Recent falls in mortgage rates suggest lenders are starting to loosen the purse strings, a trend that could accelerate once interest rates start to be cut.
“This is good news for potential home buyers.”
He added: “Planning reforms laid out by the new Labour government could, if successfully implemented, lead to a significant increase in new homes built, providing a much-needed boost for the industry.
“And the proposed combination with Redrow could mean Barratt is uniquely placed to take advantage, and provide potential for cost savings.
“For now though, caution remains the watch word. Many first time buyers remain locked out of the housing market. Until interest rates are meaningfully cut, it is hard to see that changing.”
