Barratt Development’s financial report for last month echoed the assessment previously reported by rival home builders Bovis, Bellway, and Persimmon.
Barratt Chief Executive, Mark Clare stated that when considering if lending conditions will ease in the next year, “I’m not counting on it.”
Barratt reported higher than expected profits which was attributed to shifting focus on selling more family homes than apartments. Profits for the first half of 2010 were reported at 85 million pounds compared with 2009′s figure of 34.2 million pounds.
Clarke reported in response to the groups first half figures: “In the last six months we have driven a significant improvement in operating margin, delivered a profit for the group and reduced debt levels by around 230 million pounds. The group is well positioned to secure further margin growth in what continues to be a challenging market.”
Clarke also added: “There continues to be the same uncertainty with mortgage availability and there is also economic uncertainty as a result of the new government. But we don’t know how that will play out.”