The boss of Barratt Developments says planning reform from the government will be a “key lever” in driving economic growth, as the housebuilder posted falling completions and a hit to its bottom line.
Barratt reported home completions at the upper end of its expectations for the year to 30 June, at 14,004 – a drop of almost a fifth year-on-year. Revenue fell by more than 20% to £4.1bn, with profit slumping by three-quarters to £170m.
Chief executive David Thomas said: “While demand continues to be sensitive to mortgage affordability, and reduced land buying activity during the past two years has had a near-term impact on the number of outlets we are operating from, we are well-positioned to meet the strong underlying demand for new homes of all tenures in the UK.
“We welcome the government’s proposed reforms of the planning system as one of the key levers to increase housebuilding, drive economic growth and tackle the chronic undersupply of high-quality, sustainable homes.”
Barratt completed its acquisition of rival Redrow in August and Thomas said the company is “working constructively with the [Competition and Markets Authority] to finalise competition clearance so that we can begin the integration process”.
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