Housebuilder Barratt Developments is confident for the 2023 financial year after fully forward selling its sites for the year.
The developer said it had forward sold £2.9bn of properties at 23 April – fully selling its 11,525-home book. The figures are down by 29% on the previous year, however, when forward sales topped £4.5bn and 16,236 homes were forward sold.
Net private reservations have also declined at an average of 0.65 this year, compared with 0.93 in 2022. Barratt said reservation activity in the period reflected the more challenging backdrop for first-time buyers.
As a result of slower activity, the group has also slowed its construction activity, building 303 homes per week on average, compared with 359 per week in 2022.
The group said it expected to complete between 16,500 and 17,000 homes this year.
Chief executive David Thomas 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. While 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.”
He added: “Our business remains fundamentally strong, both operationally and financially, with an experienced leadership team, a strong net cash position and a resilient and flexible business model. We are, therefore, well-placed to navigate the challenges ahead. We remain focused on delivering high-quality, sustainable homes and developments needed across the country and excellent service for our customers.”
Photo: Adderbury Fields Barratt development © Barratt
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
