Wednesday 16 October 2019 3:57 pm

Barratt Developments reassures investors over Brexit

Britain’s biggest housebuilder Barratt Developments shrugged off concerns about political and economic uncertainty this morning as it reassured investors it could deal with the potential effects of Brexit. 

The FTSE 100 developer said it has a strong balance sheet and cash position to provide it with the resilience and flexibility to react to “potential changes in the operating environment”. 

Read more: Barratt Developments defies Brexit jitters as profits climb

Barratt completed 3,252 homes in the 15 weeks to 13 October, up 14 per cent on last year, and announced that total forward sales, including joint ventures, rose to 12,963 units from 12,903 a year earlier.

However the value of the homes fell 2.4 per cent to £3.07bn and sales per site per week were flat.

The company launched 26 new developments in the period, down from 53 the year before, and reiterated its target of three to five per cent annual growth in wholly owned home completions in the medium term. 

“Recent updates from the housebuilders have strongly hinted that this is as good as it gets for the sector. But you would not necessarily guess as much reading today’s trading statement from Barratt Developments,” Russ Mould, investment director at AJ Bell, said. 

Read more: Housebuilder Barratt expects record profits despite Brexit blues

“Industry margins are under pressure as house prices stall at the same time as building costs are going up and there are also signs purchasers are using the current uncertainty to haggle more on price or looking for higher specification features in their homes.” 

He added: “Either Barratt has found an approach that has eluded its rivals or it seems likely shareholders will face disappointment at some stage.

Main image credit: Getty

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