Builders set for mega loss on portfolios
Homebuilders Barratt and Redrow are expected to report a £300m loss on their portfolios later this week.
Barratt chief executive Mark Clare will announce they had to write £160m off the value of their land bank and work in progress.
Despite Barratt boosting its shares earlier in the summer when refinancing debts and covenants, shares ended at a mere 147p last week.
At the same time last year Barratt was trading at almost 1,000p, meaning the share price has fallen over 80 per cent.
Redrow is expected to announce similar losses as the value of its assets has dropped more than £150m in value.
Both homebuilders are expected to confirm job cuts and site closures.
Recent figures show the average British house price has dived by more than 11 per cent over the past year. In light of this, analysts predict further write-offs are likely to occur.
The results from Barratt and Redrow come in the wake of a summer where most other companies in the house building industry have suffered vast share price losses.
