Barratt Developments PLC (LSE:BDEV) said it continues to trade in line with expectations despite a difficult trading environment.
David Thomas, chief executive, said: “We have continued to trade in line with the expectations set out in our announcement in September. The trading environment remains difficult, with potential homebuyers still facing mortgage challenges.”
Thomas said against this backdrop the firm is focused on driving revenue whilst continuing to manage build activity and carefully control its cost base.
The housebuilder said between 1 July and 8 October, net private reservations per average week were 169 compared to 188 the year before and net private reservations per active outlet per average week were 0.46 against 0.55.
Rising mortgage rates and the absence of Help to Buy reservation activity, which accounted for 12% of private reservations in the prior year period, dented figures.
Reflecting the slower reservation rate, total forward sales totalled 9,221 homes, down from 13,314 homes last year.
The company continues to expect to deliver total home completions of between 13,250 and 14,250 homes in financial 2024, including c. 650 home completions from joint ventures and c. 750 completions for the private rental sector.
All other guidance remains unchanged, the firm said.
Barratt said the “outlook for the year remains uncertain with the availability and pricing of mortgages critical to the long-term health of the UK housing market.”
The FTSE 100 housebuilder was updating investors ahead of today’s AGM.