Barratt’s forward sales soar 71pc in first half

Barratt Homes in Yorkshire plans to launch 23 new sites this year, including sites in Wakefield, Otley, Doncaster, York and Hull, supporting nearly 3,000 jobs to build and sell the new homes.

The housebuilder employs local sub-contractors and tradesmen and said that local businesses and people will benefit directly from the jobs.

Barratt’s chief executive Mark Clare said: “We are very well placed for 2014 and beyond. We believe that on the back of that, and the stronger market, we really have the confidence that we will continue to drive up returns and deliver a stronger second half.”

Following a painful few years triggered by the housing market collapse, UK housebuilders have bounced back thanks to Government schemes such as Help to Buy.

A spokesman for Barratt Homes in Yorkshire said: “The really great news this year is the continuation of Help to Buy Equity mortgages, which means home-movers can get on the ladder with just a five per cent deposit, a 20 per cent equity loan, and a 75 per cent mortgage.”

The scheme has stoked sentiment and driven transactions over the past year.

Rival housebuilder York-based Persimmon triggered market upgrades last week after it posted a 21 per cent rise in 2013 revenue, at the top end of analyst forecasts.

Barratt said total forward sales, excluding joint ventures, over the six months to December 31 jumped to £1.27bn, from £742.1m, equating to 7,007 plots.

It increased total home completions over the period by 19 per cent to match the surge in demand. Net private reservations per active site rose 36.7 per cent over the period.

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: “Barratt’s status as a recovery play continues apace, with an update which underlines its ability to capitalise on the resurgence of the UK property market.

“Along with its previous strategy to invest in new land at depressed prices over the last few years, the company is reaping strong rewards.

“There are notable improvements to sales rates, forward sales, reservations and completions, whilst the continuation of the Government’s schemes, aimed at boosting buying interest, is also playing into Barratt’s hands.”