Barratt Developments has made positive noises in its latest trading update, reporting an 8% growth in sales to £950m for the six months ended December 31, 2011.
The housebuilder, which expects operating profits for the period to be up around 40% to £61m, said forward sales were up 8.1% at £698.1m. It reported relative stability in the housing market and believes the government’s new housing strategy will have a “positive impact” on the industry.
“This has been yet another six months of good progress for our business despite the wider economic uncertainty,” said group chief executive Mark Clare.
Completions during the past six months totalled 5,198 units and the average selling price increased 3% to £181,000. Net private reservations per active site grew 23.1% compared the same period in 2010.
Social housing accounted for 21.3% of completions.
Barratts said it was well positioned to capitalise on the government’s release of surplus public land for housing through a “build now, pay later” scheme. It has already won six bids for public land (for 1,200 housing units) with a gross development value of £270m and is tendering for a further seven projects.
