Barratt sees surge in reservations
Nov 17 2009 By nebusiness
FURTHER evidence of a stronger housing market emerged today after Barratt Developments said reservations since July were up a third on a year ago.
The company also reported a forward order book worth £846.6m at the start of November, against £817.7m for the same time last year.
Despite the improvement in trading conditions, Barratt predicted activity levels will remain constrained until the availability of mortgage finance increases, particularly at higher loan to value levels.
Barratt’s trading update was in line with comments yesterday from Charles Church owner Persimmon, which reported a healthy order book but highlighted ``significant concerns" about mortgage finance and high unemployment.
In light of the tight mortgage situation, Barratt said it stuck by its forecast made in September for 12,000 completions in the year to June.
A shift in the product mix towards a higher proportion of houses means that Barratt’s average selling price should lift by between 8% and 10%. Private reservation rates per site were ahead 34% on a year earlier.
Panmure Gordon stockbrokers said Barratt had made a solid start to its financial year, but added it still expected the company to report an underlying loss of £78.2m in the year to June 30.
