Barratt profits plummet as it builds fewer homes

Published On Sep 4, 2024, 5:15 AM

Barratt Developments, the UK's largest housebuilder, reported a significant decline in profits after completing fewer homes this year—14,000 compared to 17,000 last year. The company attributes this downturn to high interest rates deterring buyers and rising inflation increasing operational costs. Looking ahead, Barratt anticipates finishing between 13,000 and 13,500 homes next year. This is amid government aspirations to boost housing supply in the UK, with the promise of 1.5 million homes in five years. Analysts express a cautious view for investors, noting that while government reforms may help, reducing mortgage rates is crucial for a recovery in the housing sector.