The volume housebuilder revealed that net private reservations per average week were 188 (FY22: 281) and net private reservations per active outlet per average week were at 0.55 (FY22: 0.85), adding that the figures reflect customer response to increased wider economic uncertainty, where the growing cost of living concerns have been compounded by increased mortgage interest rates and reduced mortgage availability.
Barrat stated: “In addition we have limited availability of homes for early occupation given the strength of our forward order book and we have also seen the expected reduction in Help to Buy activity, which accounted for 12% of private reservations in the period.”
In the period Barratt delivered 3,608 (FY22: 3,699) home completions (including JVs), in line with budget plans. The firm said its completion profile in FY23 is expected to remain broadly in line with the typical seasonal pattern with around 45% of full-year completions anticipated in the first half of FY23 and around 55% in the second half of the financial year.
The firm said: “Based on our completions to date, our strong forward order book and current market conditions, we now expect wholly owned completions to be in line with those reported in FY22.”
Barratt’s private average selling price as of October 9 2022 was £377.2k, 9.6% up on last year.
David Thomas, Barratt CEO, said: “We continue to see strong levels of interest across the country, however, private reservations remain below the level seen in FY22 as customers react to the wider economic uncertainty.
“Whilst the outlook for the year is less certain, we remain on track to deliver adjusted profit before tax for the year in line with current consensus, and we are focused on maintaining our commitment to lead the industry in the quality, energy efficiency and sustainability of our homes and in our customer service, all of which are fundamental to our ongoing success amid a more challenging market backdrop.”
