Announcing its first trading update since Barratt acquired rival house builder Redrow in August, the group has reported a private reservation rate from 22 August to 13 October of 0.67, 36.7% ahead of the equivalent measure in the last financial year.
Barratt’s standalone private reservation rate from 1 July to 13 October is up 31.9% to 0.62.
Total home completions for Barratt Redrow are expected to be between 16,600 and 17,200 for the financial year 2025.
Solid trading in recent weeks
“Whilst customer demand continues to be sensitive to the wider economy, we are beginning to see more stable market conditions with increased mortgage availability and affordability,” said Thomas.
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“It will take some time for customer confidence to fully recover from the macroeconomic headwinds faced over the past two years, but we are encouraged by the solid trading we have experienced over recent weeks.”
Thomas said following the merger, the group was beginning its next phase with a strong balance sheet, a “solid” forward sales position and “the ability to add significant value through cost and revenue synergies”.
Barratt and Redrow proceeded with the £2.5bn takeover despite concerns from the Competitions and Markets Authority (CMA).
The regulator identified an area of “competitive concern”, but Redrow and Barratt said they would engage with the CMA and agree on a suitable solution.