Issuing its latest trading update this morning, the firm revealed its profits for the financial year were set to be at the top of the range of analyst expectations, which had previously predicted profits would be somewhere between £675m and £733m.
The firm pointed to “very strong” consumer demand, which is being supported by increased competition in the mortgage market and the popularity of the Help to Buy scheme.
The firm has launched 46 new developments in the first quarter of the year, with net private reservations per week hitting 299, up from 282 last year
Higher selling prices
Barratt said it was continuing to see “upward momentum” on average selling prices, which it put down to changes in mix as well as underlying house price inflation. The latest house price index from Halifax found that the annual rate of house price growth remained stagnant at 3.8% last month.
David Thomas, chief executive of Barratt, commented: “This has been another strong period both operationally and financially for the Group. We remain firmly committed to delivering industry leading build quality and customer service, recognised by the award of the Home Builder Federation’s maximum five star customer satisfaction rating for the eighth consecutive year.”
Last week rival Bovis Homes announced it would be building 10-15% fewer properties this year, after it emerged that it had offered cash incentives to buyers to complete on unfinished properties.