- Barratt Developments’ private reservation rate fell 10% at the start of fiscal 2024
- Order book decreased from GBP3.60 billion to GBP2.36 billion
- Net private reservations averaged 169 a week, compared to 188 a year earlier
- Forward-sold 60% of expected private-home completions for fiscal 2024
- Full-year outlook remains uncertain due to mortgage availability and pricing
Barratt Developments, a leading house builder, has reported a 10% decrease in private reservations at the beginning of fiscal 2024. The company’s order book has also declined from GBP3.60 billion to GBP2.36 billion, with a decrease in the number of homes from 13,314 to 9,221. The decrease in net private reservations, averaging 169 per week compared to 188 a year earlier, can be attributed to mortgage challenges faced by potential home buyers and the absence of reservation activity driven by the U.K. government’s Help to Buy program. Despite the challenging market conditions, Barratt Developments has forward-sold 60% of its expected private-home completions for fiscal 2024. However, the company’s full-year outlook remains uncertain, with the availability and pricing of mortgages playing a critical role in the market’s long-term health. Chief Executive David Thomas emphasized the company’s focus on driving revenue, managing build activity, and controlling costs in this challenging environment. Based on its completions to date, order book, and market conditions, Barratt expects to meet its prior guidance of 13,250-14,250 homes for fiscal 2024, which is lower than the 17,206 homes completed in fiscal 2023.
