Consumer demand sees Barratt Developments top forward order sales of £1.68bn

Total completions are up 17% at the Newcastle-founded firm, which recently announced plans to create 600 new North East jobs

(c) Monkey Business Images Ltd A construction worker building a timber frame in a new Barratts Development home
A construction worker building a timber frame in a new Barratts Development home

Housebuilder Barratt Developments said its new land investment programme was paying off after issuing a robust half year trading update.

The Newcastle-founded firm said total forward sales stands at £1.680.8bn, up 17.1% on the comparable period’s £1.435bn.

Total completions for the six months ended December 31 2014 stood at 6,971 – up 12.5% – and the average selling price had also risen by 8.4% to £229,000.

The stock announcement comes a week after the firm’s North East division, which covers areas across Newcastle, Sunderland, Durham and Middlesbrough, revealed plans to create 600 new jobs this year as it forges ahead with plans to construct hundreds of new homes in the region to match demand.

Overall, the firm said consumer demand remains robust across all of its regions, as mortgage availability and the range of products and rates on offer to customers continues to improve as competition increases.

The firm said it has also been successful in returning the group to a more balanced delivery profile in terms of both revenue and profit, putting it on track to achieve its target of 45% of completions in the first half of this financial year.

Mark Clare, group chief executive, said: “We have delivered a strong performance in our first half including a 12.5% step up in completion levels.

“We are on track for another significant improvement in our financial performance for the full year as we continue to operate in a disciplined way, building the highest quality homes in places people want to live.

“Our significant investment programme in new land continues to pay off and over the next six months we plan to open around 90 new sites which will give us the highest average number of developments for six years. Over their lifetime, these new sites will deliver another 13,500 much needed new homes.”

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