New home orders rocket at Barratt Developments
Forward private house sales have soared 27.4 per cent at Barratt Developments, it was revealed this morning.
The Coalville-based company said forward orders stood at 3,221 plots, an increase of more than a quarter on its 2010 result.
Barratt revealed the figures in an interim management statement this morning (16 November), covering the period from 1 July to 13 November 2011.
Private average selling price increased by about 7 per cent to £207,000 over the summer compared to the same 2010 period. New site openings from recently acquired land are expected to drive "a significant improvement" in profit before tax for the full year, the company confirmed.
Over the four-month period, Barratt agreed terms on £111.3m worth of new land approvals, equating to a total of 23 sites and 2,320 plots.
Mark Clare, Barratt's chief executive, said: "Our strategy of pursuing value rather than volume combined with bringing recently acquired higher margin land into production, is delivering a significant improvement in operating performance.
"The location of our new sites coupled with our highest quality housing is helping to drive pricing and some recovery in sales rates. However, without an increase in the availability of mortgage finance, industry growth will remain constrained."
