Barratt’s completion expectations rise

Since the start of the year Barratt has “performed well” with the business expecting to increase wholly owned completions to between 16,000 and 16,250 homes for its full year, a rise from recent expectations.

During the period from January 1 to May 2 2021, the volume housebuilder delivered 4,481 total completions against the 3,504 of the equivalent period last year – which included the market shutdown – and compared to 2019’s 4,239.

This brings Barratt’s total home completions in the financial year to date (ending June 30 2021) to 13,558 compared to 2020’s 11,818 (in the equivalent period) and 2019’s 11,861. The business said the increase reflected the effect of the first Help to Buy scheme and stamp duty deadlines.

Barratt’s volume expectations for this year are “modestly above the board’s previous expectations”. In February, the business anticipated between 15,250 and 15,750 homes for the full year.

The company said it remained committed to its medium term target of delivering 20,000 homes.

During the reporting period, Barratt achieved a net private reservation rate (per active outlet per average week) of 0.83 against 2020’s 0.52 and 0.79 in 2019, with the firm noting the “unprecedented closure of our sales outlets and sites by 27 March 2020” last year.

The company’s construction activity has been ahead of its planned output, thanks to “the continued commitment of our site teams and subcontractors,” with an average of 321 equivalent homes built per average week in the reporting period.

Barratt also said it was fully forward sold for FY21. Its total forward sales as of May 2 2021 stood at £3,696.3 million (May 3 2020: £2,834 million; May 5 2019: £3,365.1 million).

It added that it was “substantially” more forward sold for 2022 than it was at the same point in FY19 for planned FY20 home completions.

David Thomas, Barratt’s ceo, said: “We have seen strong demand for our high quality, energy efficient homes on well-designed developments which means we now expect to increase wholly owned completions to between 16,000 and 16,250 homes this year, along with around 650 jv home completions.

“Our priority continues to be keeping our customers and colleagues safe as we deliver high quality sustainable homes and developments the country needs, creating jobs and supporting economic recovery across England, Scotland and Wales.”