Barratt report an upturn

Apr 8 2009 by Chris Knox, The Journal

HOUSEBUILDER Barratt Developments is showing signs of an improvement in its fortunes after reporting strong sales figures for the first three months of the year.

The Newcastle firm, which cut hundreds of workers last year as losses spiraled, has already sold more than 100 new homes in 2009, just 10% down on the same point last year, and said that this added to hopes that the worst of the economic downturn may have passed.

The firm has also seen an increase in visitors to its 15 North East developments between January and March, which are up 25% compared to the same period in 2008.

The firm said that the encouraging figures mirrored a recent report from the Bank of England that mortgage lending had increased by 19% month on month this year and figures from Nationwide Building Society showing that house prices had risen for the first time in 16 months. Other positive news came in the shape of the Chartered Institute of Purchasing and Supply/Markit PMI index, which showed that the rate of decline in UK construction activity had slowed in March.

Fenton Hewitt, Barratt North East sales director, said: “We have seen a strong performance in terms of the number of homes sold and visitors to our sites in the last few months as more and more people realise that now could be the time to buy.

“At our Melbury development in Gosforth, for example, buyers have snapped up £2m worth of luxury homes in six weeks.”