Barratt Developments has returned to profit for the year ended June 30 and will continue to focus on improving its margins rather than driving volumes, it said in a trading update.
The housebuilder completed 11,171 houses during the period (2010: 11,377) and recorded a 5% increase in average selling prices in the second half to £204,000 (2010 H2: £195,000).
Barratt’s operational profitability grew to 7.8% (2010 H2: 5.9%) in the second half.
“Whilst we have seen some recovery following the difficult autumn selling season, trading conditions in some areas outside London and the south-east remain challenging,” said Mark Clare, Barratt group chief executive.
“In London we continue to benefit from a strong market position, with our developments selling well. FirstBuy is a timely boost and is already proving popular, but market recovery cannot be sustained without improved lending conditions.”
Social housing completions accounted for 24%of all completions in the second half (2010 H2: 19.4%), with the higher proportion reflecting a higher level of site openings during the period.
Persimmon, Taylor Wimpey and Berkeley have all recently given upbeat trading statements.
