Barratt sees improved conditions in property market

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by Kay Murchie

Housebuilder Barratt Developments said half-year, pre-tax profits increased by 10% to £194.6 million.

The second-largest homebuilder by volume and No.3 by market value, echoed larger rival Persimmon by reporting improved market conditions after global financial market turmoil cooled Britain’s decade-long housing market boom late last year as banks cut mortgage lending and buyer confidence slumped.

The housebuilder said visitor numbers at its sites and show homes had improved since Christmas. Visits in the last 7 weeks were up 36% on July to December last year and down just 13% a year ago.

Furthermore, part-exchange and the firm’s shared-equity scheme for key workers had proved popular, said the company.

Mark Clare, Barratt’s chief executive, said it is still tough, but we have seen a better than expected recovery.

The outlook for the second half remains difficult but is more positive in sales terms than we had predicted, added Mr Clare.

Barratt acquired rival Wilson Bowden in April 2007 but last December was demoted from the FTSE-100 to the FTSE-250.