Between 1 July and 11 October Barratt completed 4,032 homes, up from 3,252 last year. The group’s sales rate was 0.87 per outlet per week, compared with 0.72 last year.
Assuming no further national lockdowns Barratt expects to grow completions to between 14,500 and 15,000 this year, plus around 650 from joint ventures. The group remains committed to its medium term target of a 25% return on capital employed.
The shares were broadly flat following the announcement.
William Ryder, Equity Analyst at Hargreaves Lansdown said: “Barratt has continued to perform well despite the pandemic. Completions, the forward order book and the group’s sales rate are all running ahead of last year. This is clearly good news and indicates that demand is still strong, but there are a few slightly concerning things to keep an eye on.
“High LTV mortgages are increasingly hard to access as banks impose tighter lending restrictions, and Help to Buy is supporting a greater proportion of sales. When the Help to Buy scheme changes next year some customers will need to find alternative ways of financing their new home, which could depress sales. It’s not a massive problem by itself, but could compound the impact of a recession if the recovery stalls.”