Barratt hopeful over online enquiries

Chief executive Mark Clare said online enquiries more than doubled in recent weeks as a countrywide cold snap forced many people to stay indoors or work from home.

"People haven't been able to get to the sites, but the good news is that people have been doing an awful lot of shopping online," he said.

"I'd hope that once the snow clears, those people will visit our sites," he said, adding nearly all house purchases now originate from web enquiries, with 4,000 leads on average a week from its websites.

The housebuilder, one of the three largest in the UK, said a switch to houses from apartments in its portfolio mix had led to selling prices rising four per cent to an average of 167,000. This is set to rise by up to 10 per cent by the end of its financial year.

House prices rose for a sixth consecutive month in December, according to mortgage lender Halifax on Thursday, with prices in the fourth quarter 3.5 per cent higher than in the third.

Barratt's rival York-based Persimmon painted a similar picture last week

But despite growing optimism in the sector, industry participants see prices dipping again on average this year.

Many companies have taken a hit from the snow disruption, with estimates from industry group the Forum of Private Business suggesting the cost of employee absenteeism alone could reach as much as 450m.

Barratt said it delivered 5,028 homes in the year to June and was on track to meet its full-year target of 12,000, with total forward sales up 43 per cent compared with the same period last year at 651.2m.

"The trading update provides some encouragement," said analysts at Cazenove. "While management cautions on mortgage availability and economic uncertainties, key metrics are improving."

Margins will be a key focus in 2010, with Barratt predicting its operating margin will rise in the second half.

"In this market, it's all about margin recovery, so we are absolutely not chasing volumes, to do so when there is still limited demand would be folly," said Mr Clare.