Barratt profit on target as house sales rise

HOUSEBUILDER Barratt Developments said it will deliver a profit in the second half as it reported improved sales rates since February.

The UK’s third largest housebuilder by market value, said its average selling price is expected to rise by 15 per cent by June 30, thanks to a shift in the type of houses being sold.

Net private reservations in the 19 weeks to 9 May rose four per cent year-on-year, while forward sales increased by 32 per cent year-on year, standing at £1.07bn

"The increase in our selling prices coupled with effective cost control is leading to good margin growth and we expect to deliver a profit for the second half," said Mark Clare, Barratt's chief executive.

House price growth accelerated in April according to a survey conducted by the Royal Institution of Chartered Surveyors, echoing figures from the Nationwide Building Society which showed prices recovered last month after a disappointing start to the year.