Barratt and Derwent benefit from recovery
BARRATT Developments expects to secure reservations on more than a quarter of next year’s private completions by June as the UK’s housing recovery continues apace.
Chief executive Mark Clare said yesterday that rising consumer confidence and better mortgage availability meant sales rates had now reached an “optimum level”, with Barratt registering an average of 0.77 sales per site per week during the 18 weeks to 4 May.
That compares to around 0.4 sales in 2008, and is up on 0.68 sales at the same time last year.
The housebuilder, which has also been a huge beneficiary of Help to Buy, said 2,150 of its reservations over the period were made by buyers using the scheme.
Total forward sales, where buyers have put down deposits, were up by 46.5 per cent on last year to £1.9bn.
“This has been another very strong trading period. The market shows no signs of weakening and we are seeing strength across all areas of the country,” Clare said.
Meanwhile Derwent London posted a buoyant first quarter, 57,500 sq ft of lettings worth £2.4m of rental value per year. The group predicts a five to seven per cent growth in rents this year thanks to a recovery in London’s office market.