Barratt Developments board confident as sales jump

Housebuilder Barratt Developments issued a trading update for the period from 1 July to 13 November on Wednesday, with the board saying overall market conditions remained healthy.

The FTSE 100 firm posted a sales rate of 0.74 net private reservations per active outlet per average week, compared to 0.71 for the same period a year earlier.

Total forward sales - including joint ventures - were up by 4.3% to £2,654.3m, with wholly owned forward sales up 19.5% to £2,466.1m.

As previously announced, the board proposed a record dividend payment of £248m payable on 21 November.

“This has been another good trading period for the group,” said chief executive David Thomas.

“Consumer demand is strong, supported by good mortgage availability.”

Thomas said the board was mindful of the potential for economic uncertainty created by the outcome of the EU referendum, though market fundamentals were robust, and Barratt remained a housebuilder of choice, he added.

“Barratt's commitment to quality design, build and excellence in market-leading customer service has supported our strong sales performance.

“Our focus remains on maintaining good operational and financial performance, and delivering attractive shareholder returns.”