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Barratt Developments says demand for new homes 'strong' | Barratt Developments says demand for new homes 'strong' |
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Barratt Developments has said that there remains "strong demand" for new homes, although the London market is cooling. | Barratt Developments has said that there remains "strong demand" for new homes, although the London market is cooling. |
In a trading update, Barratt, one of the UK's biggest housebuilders, said sales since July had risen by 4.3%. | In a trading update, Barratt, one of the UK's biggest housebuilders, said sales since July had risen by 4.3%. |
But the company said the London housing market was "more challenging" because of the higher selling prices. | But the company said the London housing market was "more challenging" because of the higher selling prices. |
The news comes on the day that a report said first-time buyers need more help to stop a decline in home ownership. | The news comes on the day that a report said first-time buyers need more help to stop a decline in home ownership. |
Average prices have fallen in central London because of an increase in stamp duty property tax and the uncertainty created by the June 23 EU referendum. | |
"We do recognise that at price points about £600,000, particularly at price points once you move above £1m, the market is clearly slower," said Barratt chief executive David Thomas. | |
When asked how much Barratt is cutting prices in London, he added: "You are seeing commentary about prices backing off year-on-year on a 5% to 10% basis so I think that it's in that sort of order." | |
Mr Thomas added: "We are mindful of the potential for economic uncertainty created by the outcome of the EU referendum. However, market fundamentals are robust. | |
"This has been another good trading period for the group." | |
The housebuilder has launched 69 new developments since July, compared to 51 in the same period last year. The company now has 385 sites, slightly up on last year's 380. | The housebuilder has launched 69 new developments since July, compared to 51 in the same period last year. The company now has 385 sites, slightly up on last year's 380. |
Barratt said the average rate of reservations per week were in line with last year, at 265. | Barratt said the average rate of reservations per week were in line with last year, at 265. |