Barratt’s package to boost market
HOUSEBUILDER Barratt today announced a raft of sales incentives for home-buyers in a bid to shift stock, after seeing annual profits slide by a massive 68%.
The company will meet the cost of stamp duty on homes worth up to £500,000 and offer house buyer protection from property price drops of up to 15% during the next three years to tempt customers in the midst of a slow market.
The firm has posted pre-tax profits of £137.3 million for the year to June 30. Deals apply to completions made before Christmas.
Barratt’s profit slump came after the group wrote off £208.4 million from its £3.3 billion land bank to reflect the poor state of the property market.
The firm, which bought rival Wilson Bowden last year for £2.2 billion, also revealed that forward sales at the year end were down nearly 51% to £697.6 million.
Chief executive Mark Clare said: “Pricing continues to be under pressure with higher incentive levels being required.
“There is little prospect for any material improvement in trading conditions until mortgage finance and customer confidence return.”
Under Barratt’s scheme, if a new buyer sells the house for a loss within three years, the firm will refund the difference up to a maximum of 15%. The firm’s UK-wide stamp duty deal will save buyers up to £15,000.
The Government announced last week it was upping its stamp duty exemption limit to £175,000 for a year to boost sales.
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