According to Barratt’s latest trading update, there had been a lot of variation over the period, with the reservation rate coming to 0.49 per active outlet per average week in January, and the 12 weeks to April rising to 0.71.
“Reservation activity in the period has reflected the more challenging backdrop for first-time buyers but resilient demand amongst existing homeowners, where limited homes for sale in the wider market, the energy efficiency of our new homes and the backdrop of significant rental cost growth, have helped to support demand,” it explained.
It continued that its reservation rate had been complemented by increased multi-unit sales into the private rented sector and additional private unit sales to registered social landlords.
Total home completions for the period came to 3,194, which compares to 3,915 in 2022.
Barratt said that total home completions for financial year to date came to 11,820, which is down from 11,982 in the same period last year.
The company said that the decrease was due to a reduction in the forward order book carried into the period, which was due to a sharp fall in reservations in the last quarter of last year and the closure of the Help to Buy scheme.
Total forward sales as of 23 April came to 11,525 homes, a fall of 29 per cent compared to the same period last year.
The firm added that total forward sales as of 23 April came to around £2.95bn, which compares to £4.5bn in the same period last year. The company said notwithstanding its slower reservation rate it was fully forward sold for 2023.
‘Early signs of recovery’
Looking ahead, the firm said that it expected full-year 2023 total homes completions to come to between 16,500 and 17,000 homes, and trading for the year to be in line with current consensus expectations.
David Thomas, Barratt’s chief executive, said: “In February, we reported early signs of recovery in our reservation rates following the exceptionally challenging trading conditions experienced at the end of 2022.
“Whilst the economic backdrop remains difficult, we are pleased that more positive sales rates have been maintained through this period and we are now fully forward sold for FY23. As a result, we expect to deliver full year adjusted profit before tax in line with current market expectations.”
He added: “We remain committed to leading our industry in quality, customer service and sustainability. We are proud to be the only major housebuilder awarded five stars by our customers for the 14th successive year in the Home Builders Federation awards and we remain focused on delivering the high quality and sustainable homes the country needs, creating jobs and supporting the economy.”
