Barratt Developments says it is confident in achieving its target for the next year of stable demand for the past quarter.
Between July 1st and October 10th, the group offered 27 new developments and 281 purely private bookings per week.
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“This is especially encouraging given the significant cuts in support of purchasing reservations and the end of the stamp mission holiday,” commented CEO David Thomas.
“We continue to work closely with our suppliers and subcontractors and have not experienced significant disruptions in our build programme as a result of our challenging supply chain environment.”
In a statement, Baratt said, “The group is in a very good position. We have both a substantial net cash balance and strong advance sales, excellent land banks and high quality and sustainable nationwide. With our continued commitment to providing housing, we are constantly focused on providing improvements to our overall business.”
Laura Hoy, equity analyst at Hargreaves Lansdown, commented: Demand for pent-up lockdowns is beginning to fade, but people are still willing to move, which is increasing home prices. According to Baratt, it is enough to offset the inflation in build cost, and the group doesn’t expect to bring about a negative side surprise this year. ”
Analysts also noted that Barratt will primarily shave off the impact of the stamp duty holiday end and the changes to assist in purchasing.
Russ Mold, AJ Bell’s investment director, said, “The stamp duty land tax credit has ended and the rules for assistance support continue to change, but Barratt’s trading statement is welcome. So, as support rules continue to change, housebuilder shareholders are on the nerves.
“The net booking rate for the new fiscal year may be slightly more prevalent compared to 2020, but it is 18% above the level seen at this stage in 2019. The first of last fiscal year was Half of three months (and overall just under 40% per year).
