Barratt Developments has admitted its construction plans may change due to a possible slowdown in the property market…
A number of large contractors have been upbeat about the future in the wake of the vote to leave the EU. Barratt Development has become the first major housebuilder to admit it might have to slow down its construction plans due to the result of the vote. However, the firm also said it was too early to know the impact of Brexit on its operations.
Stock values in the construction sector were hit the hardest in the aftermath of the vote. Barratt said it had seen a five per cent increase in the number of homes it built in the year to the end of June, to 17,319, but the firm said it was now taking measures to reduce its risk.
Speaking to news agency Reuters chief executive David Thomas said: “We would look at future land commitments, our current commitments, we would also look at our build programmes and the extent to which we should slow down our build programmes.
“The principle focus of our reassessment will be about where we have approved land but we have not yet submitted for planning or alternatively where land is coming to the market that we could bid on and we are looking at whether we will or we won’t”.
In a trading statement, Barratt said the fundamentals of the market had remained strong with good mortgage availability, strong government support, and the demand for homes. But a report from the Yorkshire Building Society revealed earlier this week that since 2004 the UK had built more than a million fewer homes than were needed.
Property firms also said they are starting to see fallout from the vote. Estate agents Foxton said it expected to see a drop in its full-year earnings as investors have pulled out cash from commercial funds.