Housebuilder Barratt says market still tough

HOUSEBUILDER Barratt Developments said wider economic fears and the lack of mortgage finance meant the market for new housing was still challenging as it reported a jump in profits.

By The Newsroom

Published 8th Sep 2010, 10:40 BST

House prices fell much faster than expected last month, according to a monthly survey from mortgage lender Nationwide, stoking concerns that the country could be headed for a double-dip recession.

Barratt said it would therefore continue to focus on prices rather than volume and would not reinstate dividends, unlike rivals Bovis and Persimmon.

For the year to end-June it reported operating profit of 90.1m, up from 34.2m one year ago.

Barratt had said in July it would report operating profit of at least 85m for the year thanks to a strong second-half performance.

Its shares, which have fallen 16 per cent this year, closed last night at 104.3 pence.

Nationwide HOUSE prices