Barratt Developments reports sales struggles in London
Barratt Developments is feeling the heat in London as it reported today that completions in the capital were down more than 56 per cent.
The housebuilder completed on 367 homes in London in the six months to the end of December, down from 842 in the same period the year before. Barratt said it was lowering prices and offering bulk deals to shift homes in the capital.
Read more: Barratt has taken "pricing action" on high-end homes in London
Barratt Development's share price fell 1.5 per cent in morning trading.
However, Barratt's completions outside of London reached the highest level for nine years and its profits were up seven per cent to £315m.
Anothony Codling, analyst at Jefferies, said: "Overall Barratt is on track to meet expectations, but like Foxtons yesterday Barratt is feeling the chill in London.
"Whilst outside of London legal completions are at their highest level for nine years, within London completions are down by more than 50 per cent."
Foxtons reported yesterday that its earnings almost halved last year due to tougher stamp duty rules and difficult trading in London.
David Thomas, chief executive of Barratt Developments, said: "This has been another good half year for the group. Consumer demand is strong benefiting from good mortgage availability and ongoing government support. Our healthy forward order book and this strong demand leaves us on track to deliver on our volume guidance for the full year."