UK housing boom helps Barratt Developments’ forward order book hit £3.7 billion

Barratt has seen high demand for new homes during the pandemic

(Barratt )

The value of Barratt Developments’ forward order book has risen to £3.7 billion, as the FTSE 100 firm benefits from the UK housing boom.

Chief executive David Thomas also said in the year to June, Barratt expects to complete sales on 16000 to 16250 homes. That is above the 15,250 and 15,750 homes completions it previously expected. Some 650 deals from joint ventures are also expected.

He said: “We have seen strong demand for our high quality, energy efficient homes on well-designed developments.”

The housebuilder has benefited from a number of measures including a stamp duty holiday enticing buyers and numerous people reassessing their housing needs during Covid-19 lockdowns.

Barratt said as at May 2 total forward sales, including from joint ventures, stood at £3.7 billion, representing 14,846 homes customers have put orders in for.

A year earlier it was 12,205 homes at £2.8 billion, and at the same point in 2019 it was 14,181 homes at £3.4 billion.

A number of measures have been unveiled by the government to help buyers over the last year, and the March Budget delivered the extension of a stamp duty holiday and a new mortgage guarantee scheme to help people with a 5% deposit get on the property ladder.

Barratt also today said that since July 2017 it has incurred charges of £163.1 million in respect of legacy properties, covering costs associated with cladding remedial works and associated reviews, for example.

Numerous flat owners across the UK that bought from various housebuilders are facing huge bills for fire-safety improvements after the tragic Grenfell blaze in 2017.

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