fbpx

Barratt total home completions down 19 percent

reporter

Barratt developments’ home completions are down for the year ended 30 June 2024 with 14,004 compared with the previous year.

Credit: Barratt Homes

The developer’s latest trading update showed total home completions reduced by 18.6 per cent from 17,206 for the year ended June 2023.

Due to its lower order book and more muted demand in Q1 the company saw a 28.5 per cent decline in total home completions in the first half. 

Barratt Developments also put aside an additional £192 million to address legacy issues in the fire safety and external wall systems contingency as well as remediation costs for atypical buildings.

However, reservation activity improved on a sustained basis in Q2 and continuing from the start of the new calendar year, total home completions only declined by 8.7 per cent in the second half.

While total forward sales (including JVs) fell from £2,223.4 million of 8,995 homes in FY23 to  £1,912.3 million of 7,239 homes FY24, Barratt claims it is in line with expectations.

The company also claims that due to its ‘strong operational performance’, profits adjusted before tax for FY24 are expected to be ahead of its previous expectations.

A recent S&P Global report found that despite levels of industry growth at the end of the second quarter of this year, it was impacted more generally by a renewed slump in house building activity.

Barratt has welcomed the new Labour Government’s ‘urgency and focus on housebuilding’ and planning reform to unlock economic growth and ‘tackling the chronic undersupply of new homes.’

Barratt CEO David Thomas said: “During another year of economic and political uncertainty, we have delivered a strong operational performance.

“Whilst we continue to navigate a challenging macroeconomic backdrop, we are delivering industry leading build quality, sustainability and customer service. Combined with the strength of our balance sheet, this has ensured we remain resilient and responsive through the cycle.”

Was this interesting? Try Costain announces new group commercial director

If you have a tip or story idea that fits with our publication, please contact miles@wavenews.co.uk

Get industry news in 5 minutes!

A daily email that makes industry news enjoyable. It’s completely free.