BARRATT Developments has issued a trading update for the period 1 January 2023 to 23 April 2023 in which the housebuilder revealed it expects trading for this financial year to be in line with current expectations.
Douglas McLeod, MD Barratt Developments Scotland, said, “In February we reported early signs of recovery in our reservation rates following the exceptionally challenging trading conditions experienced at the end of 2022. Whilst the economic backdrop remains difficult, we are pleased that more positive sales rates have been maintained through this period and we are now fully forward sold for FY23.
“As a result, we expect to deliver full year adjusted profit before tax in line with current market expectations.
“In Scotland, we remain committed to leading our industry in quality, customer service and sustainability. We are proud to be the only major housebuilder awarded 5 stars by our customers for the 14th successive year in the Home Builders Federation awards and we remain focused on delivering the high quality and sustainable homes the country needs, creating jobs and supporting the economy.”
Barratt revealed reservation activity in the period has reflected the more ‘challenging’ backdrop for first time buyers but ‘resilient’ demand amongst existing homeowners. The company’s reservation rate has been complemented by increased multi-unit sales into the private rented sector along with additional private unit sales to registered social landlords.
During the period, Barratt has operated from an average of 375 (2022: 326) active sales outlets including nine joint ventures per average week. The business has launched 21 new outlets, including joint ventures, with the increase in average sales outlets said to be reflective of both new outlets opening and the slower private sales rate.
For the trading period, Barratt has delivered 3,194 (2022: 3,915) total home completions, bringing total home completions in the financial year to date to 11,820 (2022: 11,982).
In terms of outlook, Barratt expects FY23 total home completions will be between 16,500 and 17,000 homes including around 750 joint venture completions.
