Barratt hails ‘relative stability’ in housing market

By JAMIE GREARSON AND PETER RANSCOMBE
Published on 12/09/2012 10:19

Housebuilder Barratt Developments more than doubled its full-year profits thanks to “relative stability” in the housing market, making it the latest in a string of construction firms to post solid results.

The group, which owns the Barratt Homes and David Wilson Homes brands, said average selling prices in the year to 30 June were up 1.2 per cent at £180,500 after sales rates remained “consistent” through the year.

Barratt said it was boosted by both lower land prices and UK government policy such as the FirstBuy scheme launched in July 2011, which has delivered 1,573 completed sales.

The results come after rivals Bovis Homes, Persimmon and Taylor Wimpey all posted strong profit growth – despite wider woes in the mortgage market, economy and construction sector.

The Leicestershire-based group, which saw shares fall 3 per cent as the group delayed paying a dividend until next year, reported a 159 per cent leap in pre-tax profits to £110.7 million.