Barratt Developments hails 'year of recovery'

Barratt Home
Image caption The average price of a Barratt-built home has risen 2.3% on a year ago

Barratt Developments, the country's largest homebuilder, says it has had its best result in three years helped by a rise in average selling prices.

It reported a pre-tax loss of £11.5m for the year to June, including £54.2m of exceptional charges relating to financing and reorganisation.

Stripping these charges out, the company made an underlying profit of £42.7m for the year to June.

Its average selling price rose 2.3% to £178,300.

Barratt said it expected to make further progress in a tight UK housing market.

The company's chief executive, Mark Clare, said: "This has been a further year of recovery for the group.

"We have made considerable progress in rebuilding profitability - by optimising selling prices, improving operational efficiency and securing new higher margin land."

The company said the mortgage market was holding back demand for newly built properties, saying that there was a limited number of lenders and that borrowers were typically being asked for a 20% deposit, rather than a 10% deposit for older properties.

It said the outlook for the housing market remained challenging, particularly outside London and the south east of England.

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites