Half of Barratt’s Help to Buy sales will not qualify under new scheme

Half of Barratt’s Help to Buy sales will not qualify under new scheme

 

Total completions fell 29.4 per cent to 12,604 for the year, the builder revealed. 

However, prices held up relatively well, with the group recording a fall of just 0.4 per cent to £310,600 on average.

Analysis by buyer type showed 35 per cent were supported by Help to Buy. This figure included 19 per cent who would, and 16 per cent who would not, be eligible when the scheme begins tapering from 1 April 2021.

Other private homes made up 30 per cent of buyers and 31 per cent bought affordable homes.

David Thomas, chief executive at Barratt Developments, said: “Covid-19 had a significant impact on our results. But we are seeing very strong consumer demand, and our robust financial position means we enter the new financial year with cautious optimism.”

For wholly-owned homes, completions decreased by 30 per cent to 12,034. Barratt reported wholly-owned completions were ahead by eight per cent in H1, but slid back by 59 per cent in H2 as the pandemic hit.

The group stopped construction when lockdown began and started returning to sites in waves from 11 May in England and Wales and 1 June in Scotland.

Completions on private homes fell by 29 per cent to 9,568, on affordable homes completions were down 31 per cent to 2,466, and joint venture completions dropped 23 per cent to 570.

Thomas added: “We are renewing our focus on medium-term targets, on leading the industry in quality and service and on supporting jobs and economic growth by building the homes the country needs.” 

For private homes, average selling prices in London rose by 20 per cent to £754,800 and regionally by 2.2 per cent to 303,600, in the year.

The company’s revenue was down 28.2 per cent to £3.4bn while profit before tax fell 46 per cent to £491.8m.