Major house building firm Barratt Homes has reported a jump in profits for the year to the end of June…
House building firms are reaping the rewards of an increasing push for new homes. In a bid to tackle the shortage of affordable properties, the government has pledged to build 200,000 new properties over the course of this parliament.
Major house building firm Barratt Homes has certainly enjoyed the benefits of a nation that is focused on building. In the year to the end of June, the firm reported a 45 per cent increase in profits to £565.5m.
The company said it had experienced growth due to in part to schemes such as Help to Buy and improved mortgage provision. Demand for new homes has also had a positive impact on the firm, as this continues to exceed supply.
According to data from the firm, private house prices rose by 8.7 per cent to an average of £262,500. Chief executive David Thomas said he expected to see additional growth. Investors will receive a special dividend of ten pence per share.
“The new financial year has started very well; we have a strong forwards sales position,” he said.
Over the last 12 months Barratt has built 16,447 new homes. Some of this figure were joint ventures. The firm has also committed £957m to build around 17,000 more properties.
The news comes on the back of the data revealing the number of houses built in Britain fell for the first time in more than two years during July. This was despite rising house prices, which are driving a decline in construction. This trend looks set to continue with the volume of new housing orders at its lowest level since 2013.