Britain’s biggest house builder, Barratt, has announced an increase in half-year profits despite building fewer homes.
Pre-tax profits in the six months to December 31 rose by 8.8% to £321M as total completions fell from 7,626 to 7,180.
The company said that completions outside of the capital were at their highest level for nine years – news that will do little to solve the housing shortage crisis in London.
The drop in the number of homes being built will come as a blow to the government as they look to shake up the housebuilding sector following the publication of their housing white paper.
Barratt were keen to emphasise the quality of the homes being built following the news this week that Bovis were setting aside £7M to compensate customers who were sold properties that weren’t finished and riddled with plumbing and electrical faults.
David Thomas, Chief Executive of Barratt Developments PLC said: “As we reported in the January trading update, we have delivered another very strong first half performance, pre-tax profits were up nearly 9% and completions outside of London at their highest level in nine years.
Whilst we have increased volumes across the UK by 55% in the last five financial years, we have maintained our commitment to build quality and customer service and we are the only major housebuilder with the HBF 5 Star Customer Satisfaction Award.
“With a record forward order book, strong consumer demand and a positive lending backdrop, we remain confident in our outlook for the full year. Our confidence in the business going forward is reflected in the improved and extended Capital Return Plan.”
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