Profits jump for housing firm Barratt Developments in the six months to 31 December 2016, but the total number of completions fall
Housebuilder Barratt Developments revealed it has seen its profits increase, even as the total number of homes it completed dropped.
The firm said profits jumped 8.8 per cent in the six months to 31 December 2016. However, total completions dropped from 7,262 to 7,180.
Outside London record number of homes were completed, but overall totals suffered a hit due to a drop in the capital.
Barratt Developments said: “There remains a long term housing shortage of all tenures that can be addressed through additional supply in the right locations. We are committed to playing a leading role in addressing this issue.”
Skills shortages remain a problem
The housebuilder said it has some 77,000 plots of land banked, but said labour shortages remained an issue.
“On labour, we continue to see some pressure on skilled labour supply with shortages remaining location and trade specific. However, whilst labour costs are still rising, the rate of increase is moderating,” the firm said.
“We are also seeking to increase construction efficiency and reduce demand on labour through the use of alternative build options such as timber frames, large format block and light gauge steel frames.
“We are implementing a number of key initiatives in terms of improving efficiency.
“In addition to building around 1,300 homes during FY17 using timber frames we have completed trials of light gauge steel frames and large format block which give the business additional options with similar benefits as timber frame ensuring we are future proofing our business.
“We continue to trial various offsite technologies and innovative products and we are investing in research into smart technologies.”
As a result of profit increases shareholders will see £1.4bn of payments planned in the four years to November 2018 come their way.
Issues in housebuilding
The news has not been good across the board for housebuilders, however. Earlier this week Bovis Homes issued a profit warning as the firm said it planned to focus on the quality of its builds rather than the quantity, which would see fewer properties built as a result. This came on the back of planned compensation payouts after consumers complained about the quality of new builds.
