Member Article

Dorset housebuilder remains focused on building high-quality, sustainable homes at competitive prices

Despite a difficult trading environment, with homebuyers still facing mortgage challenges, Barratt Developments remains committed to building high-quality, sustainable homes for its customers at competitive prices.

The housebuilder, which is bringing new homes to Dorset through its Barratt Homes and David Wilson Homes developments at Quarter Jack Park, Compass Point and Niveus Walk has released its trading update for the period from 1 July 2023 to 8 October 2023.

Although the market conditions are still challenging, the developer remains focused on building homes that are better for the environment and will save its buyers money in the long term.

During the ongoing cost-of-living crisis, Barratt is building properties with good levels of insulation and high-efficiency heating systems, which help to cut down carbon emissions and save buyers money on their energy bills. The housebuilder also continues to drive towards ensuring all its new house types are zero carbon in use from 2030.

Reservation activity for the housebuilder’s new homes has continued to reflect mortgage challenges faced by potential homebuyers, as well as the absence of Help to Buy reservation activity, but the developer has continued to focus on driving revenue through multi-unit sales to the private rental and affordable housing sectors and has continued to use sales incentives for private customers.

In this latest trading period, Barratt has seen a net private reservation rate of 0.46 (FY22: 0.55) per active outlet per average week and has a total forward sales estimation (including joint ventures) of 9,221 homes (FY22: 13,314) at a value of £2,362.0m (9 October 2022: £3,603.1m).

These figures reflect customer response to the ongoing wider economic uncertainty, but Barratt Developments remains committed to building homes its customers need, to help address the country’s housing crisis, and to drive long-term, sustainable growth for its business.

James Dunne, Barratt and David Wilson Homes Managing Director at Southampton Division, which has its HQ in Hedge End, said: “Against a difficult economic backdrop, we are focused on driving revenue whilst continuing to manage build activity and carefully control our cost base. As always, we remain focused on leading the industry in building high quality, energy efficient and sustainable homes for our customers.”

Despite market uncertainty, the developer is now 60% forward sold with respect to private wholly owned home completions for FY24 (FY23: 70%), of which approximately 67% are either completed or exchanged (FY23: 72%). The completion profile in FY24 is expected to remain broadly in line with the typical seasonal pattern with around 45% of Barratt’s full year completions anticipated in the first half of FY24 and around 55% in the second half of the financial year.

This was posted in Bdaily's Members' News section by Barratt Homes .