Barratts Developments drives forward sales thanks to attractive mortgage market

The house builder drove forward sales to £2.5bn in the 19 weeks to May 10 and pointed to strong demand for new build homes in the UK

Mark Clare, CEO of Barratt Developments
Mark Clare, CEO of Barratt Developments

House builder Barratts Developments says sales performance remains strong thanks to an improved mortgage market.

Net private reservations per week increased to 289 in the 19 weeks to May 10, up from 280 in 2014 for the period.

The number of housing completions for Barratts’ 2015 financial year, including its joint ventures, is now expected to be ahead of previous estimations, at roughly 16,100.

Forward sales for the period rose 17.9% to £2.5bn as a stronger sales backdrop meant the firm was able to drive higher reservations from legacy, lower margin sites.

Mark Clare, group chief executive, said: “Our investment in around £4.5bn of approved land for new housing since 2009 continues to deliver results. Completions for FY15 are expected to increase by around 9% and our forward order book, at more than £2.5bn is the highest level ever achieved by the Group.

“We remain committed to helping increase the number of new homes across the UK, with our completions increasing by more than 40% over the past 4 years.

“We are on track to deliver a further significant step up in our financial performance in FY15, making good progress towards achieving our FY17 targets of a gross margin of at least 20% and return on capital employed of at least 25%.”

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