Barratt sees full year in line with expectations; Brexit could slow rate of building

House builder Barratt said full year profit before tax was to increase by around 20% to £680m, in line with market expectations, but told reporters it could reduce the rate at which it builds houses due to a possible slowdown from Brexit.

Total completions, including joint ventures, increased by 5.3% to 17,319, as a result of strong consumer demand during the financial year, the trading statement revealed.

Barratt said joint ventures performed well and its share of profits from JVs in the full year was expected to increase to around £72m against £45.4m in 2015.

"We saw good consumer demand across our regions, with some increased uncertainty in the higher value London market. During the year, the mortgage market remained positive, with increased competition amongst lenders and new market entrants resulting in good availability of attractive mortgage finance for our customers," Barratt said.

It added that was too early to say what the impact of the uncertainty facing the UK economy will be post the Brexit vote.

“The sector continues to receive focused government support, mortgage availability is good and there remains an undersupply of new homes. With a strong balance sheet and forward order book, and industry leading quality and customer service, we remain confident in the positive fundamentals of both the housing sector and our business."

But chief executive David Thomas told Reuters that contingency plans in place have resulted in management taking "appropriate measures to reduce our risk, such as reassessing land approvals, as we continue to monitor the market.”

Thomas, added that Barratt would be looking at “the extent to which we should slow down our build programmes”, as well as whether or not to bid for land coming on to the market.